TNK-BP Investing $800 Million to Develop Uvat Greenfields

TNK-BP is expected to invest as much as $800 into its Uvat upstream projects in 2012 to support deployment of innovative production technology, develop related infrastructure and continue exploration.

TNK-BP is pursuing an organic growth strategy to step up its hydrocarbon production by 1-2% every year. Uvat has been consistently claiming a bigger share in the company’s production portfolio. The development program is expected to boost production by 18.6 % versus last year up to 7 million tons. Over a half of the 2012 investment will fund the drilling of development wells using advanced technology for better oil recovery, and the exploration program.

By the end of 2012, TNK-BP plans to complete a 39 km road, which will link Ust-Tegusskoye and Tailakovskoye fields, and will dramatically cut the cost and speed of delivering supplies.

“Most TNK-BP assets are mature brownfields, so ramping up production at new fields is a key strategic objective to deliver sustainable business growth. Today, Uvat is a most dynamic region coming up to speed, where hydrocarbon production shot up by 22% over the first half of 2012 alone compared to the same period last year. Next year we plan to go on raising the bar to exceed 8 million tons per year”, says Yuri Masalkin, General Director of TNK-Uvat.