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.
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, 50% held by BP and 50% held by the AAR Consortium (Alfa Group, Access Industries, and Renova). TNK-BP also owns close to 50% of another Russian oil and gas company, Slavneft. TNK-BP accounts for approximately 16% of Russia’s production (including its share of Slavneft). SEC proved reserves (life of field basis) were 8.586 billion boe as of December 31, 2009.