TNK-BP announces that by 2016 it will invest over $170 million in an integrated program of automation and optimization of production at the Company’s mature fields.

 

The “smart field” program involves the deployment of high-tech automated well control systems at TNK-BP’s brownfields. International experience shows that in certain cases this can increase field’s reserves by 1-2%, cut operating costs by 3-10% and boost production by 1-4%.

 

The effectiveness of automated well control has been confirmed by a pilot project, which the Company launched at the Samotlor field in 2010. This has enabled savings of around $15 million on well maintenance and significantly reduced the decline in flow rates.

 

“As part of its “Asset of the Future” concept TNK-BP is planning to systematically expand the list of “smart fields”. Deployment of the new process systems will result in a qualitative improvement in well control, minimizing environmental risks and enhancing development efficiency at the Company’s mature fields. The priority targets will be license blocks at Samotlor, Orenburg and Nyagan. We will use the same integrated technological approach to plan new field developments right from outset”, said Mikhail Slobodin, TNK-BP Executive Vice President, Strategy and New Business Development.

 

TNK-BP is Russia’s third largest oil company and is owned by BP and the AAR consortium (Alfa Group/Access Industries/Renova) on a parity basis. Additionally, TNK-BP owns approximately 50% of the Russian oil and gas company Slavneft. TNK-BP’s share in Russia’s oil production (including its share in Slavneft) is about 16%. The Company’s total proved SEC LOF reserves are 9.115 billion BOE as of December 31, 2011.