October 16, 2008

TNK-BP Commences Crude Oil Deliveries to ESPO

Russia-based vertically integrated oil company TNK-BP has commenced deliveries of crude oil produced at the Verkhnechonskoye field to the East Siberia-Pacific Ocean Pipeline.

TNK-BP and Rosneft are the major shareholders of Verkhnechonskneftegaz (VCNG), the operator of the project.

In 2008 production at Verkhnechonskoye field (VC) is expected to reach 2,500 tons per day. In 2009, the project is expected to produce in excess of 1 million tons. Cumulative investment in the project has now reached $1 billion, with further investment of $500 million planned for 2009.

Tim Summers, COO of TNK-BP, said: "The first shipment of VC crude into the East Siberia-Pacific Ocean Pipeline (ESPO) marks an important event for TNK-BP and for the industry. We are establishing a major new production center in east Siberia. The beginning of regular commercial shipments from VC to the ESPO marks the emergence of east Siberia as a new and important oil and gas province in Russia."