TNK-BP Signs Cooperation Agreement with Petrovietnam
TNK-BP announces that today, as part of its strategy to expand its business internationally, the company has signed a cooperation agreement with the Vietnamese state corporation PetroVietnam outlining the further steps and activities to be undertaken as part of the companies' long-term cooperation.
According to the agreement, PetroVietnam will support TNK-BP's entry to the Vietnamese oil and gas market through the acquisition of BP's stake in upstream gas producer Block 6-01 and also will support TNK-BP's intention to further expand its downstream and upstream business in Vietnam. Additionally, TNK-BP will support PetroVietnam in its intention to develop its upstream business in Russia, and the two companies will enter into negations concerning the establishment of a joint venture in Russia to achieve this.
As part of the cooperation agreement, TNK-BP will consider further ESPO crude supply contracts to Vietnam on a long-term basis.
Additional Info:
On 18 October, 2010, TNK-BP and BP p.l.c. reached an agreement for TNK-BP to acquire BP's upstream and pipeline assets in Vietnam and Venezuela for an overall price of $US 1.8 billion.
On September 20, 2010, TNK-BP signed a contract to supply Russian ESPO crude oil blend to Vietnam. This is the first time ESPO crude oil blend will be delivered to Vietnam. The first 100,000 ton shipment under the new contract is to be delivered in November 2010.
TNK-BP is Russia's third largest oil company that is owned on a parity basis by BP and AAR consortium (Alfa Group/Access Industries/Renova). TNK-BP also owns ca. 50% of Slavneft, a Russian oil and gas company. TNK-BP produces ca. 16% of the total volume of Russian oil production (including TNK-BP interest in Slavneft). The total proven reserves owned by the Company as estimated according to the Securities and Exchange Commission (SEC) methodology disregarding license validity amounted to 8.586 Bboe as of December 31, 2009.
Currently the share of TNK-BP's in-house power supply is approximately 4%. The company's strategy in power supply calls for raising this indicator to over 50% by 2020. TNK-BP plans to invest over $700 mln to construct, upgrade and reconstruct its in-house power facilities, including gas turbine power plants and power grids, in the forthcoming three years.
Published 15/11/2010
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