4 Aug 2009 11:48

TNK-BP to invest $700 mln in APG utilization before 2012

MOSCOW. Aug 4 (Interfax) - TNK-BP plans to invest about $700 million in associated petroleum gas (APG) utilization before 2012, the company said in materials.

The investment aims to boost APG utilization to 95% by 2012, up from 80% in 2008.

TNK-BP had invested over $600 million in APG utilization as of year-end 2008.

In 2007 the APG program saw creation of a joint venture with OJSC Sibur (Yugragazpererabotka) to process gas in TNK-BP's main area of operations. It processed 6.9 billion cubic meters of gas in 2008 at Yugragazpererabotka facilities.

In addition, TNK-BP and OGK-1 are operating a joint venture to construct new power blocks at the Nizhnevartovsk District Electricity Station (Nizhnevartovsk GRES) with combined capacity of up to 900 megawatts. The GRES will raise the company's utilization of APG and produce electricity for use by TNK-BP upstream units.

TNK-BP expects to produced 12.1 billion cubic meters of gas in 2009. APG makes up about 80% of total gas and gas condensate production.