7 Jun 2010 14:44

TNK-BP to boost production 4% in 2014-2015 if Yamal transport issue resolved

MOSCOW. June 7 (Interfax) - TNK-BP plans to increase production 4% from 2014-2015 given that the issue of transporting hydrocarbons from Yamal is resolved, said Deputy CEO Maxim Barsky, who is designated to become the CEO in January 2011.

TNK-BP aims to become Russia's biggest oil company. "To do that we have to increase production 2% a year. If we resolve the transportation problem in Yamal, then, beginning with 2014-2015, production will grow 4%. That would make us the leader among private sector companies," Barsky said.

TNK-BP also has less refining capacity. "Our refining capacity amounts to 33% [of crude production] compared with the Russian industry average of 52%. We plan to eliminate the lag and reach 50%-52% in five years. That is, we plan to boost refining capacity in Russia and the CIS countries," he said.

TNK-BP is already one of the top players in the retail segment, with 1,200 filling stations throughout Russia. "We have two strong brands: TNK and BP. We plan to significantly expand our filling station networks in the Urals, the Volga region and Southern Russia. We are also developing a network in Ukraine. We recently acquired Vik Oil, the third biggest chain in Ukraine, and will continue developing in this area," he said.

TNK-BP also has operations in Belarus and "is looking at projects in Kazakhstan."

As for gas projects, most of the company's production is associated gas. "However, with development of the Rospan project, we plan to reach 15 billion cubic meters a year of our own production in five years, plus about 10 bcm of associated gas. That would boost gas to 20% of total hydrocarbon production, which is strategic for us. We are also examining together with our shareholder BP the possibility of tight gas production in Ukraine," he said.

TNK-BP is the third biggest oil company in Russia by production and accounts for about 16% of total Russian production (including TNK-BP's stake in Slavneft).