TNK-BP to Invest in Excess of 700 Million Dollars in Power Generation Upgrades in 2010-12
TNK-BP plans to invest in excess of 700 million dollars to construct, upgrade and reconstruct its captive power generation facilities in the forthcoming three years. The funds will be mostly spent to construct and upgrade gas turbine power plants and power grids.
The key objective for TNK-BP is to substantially increase the share of captive power generation and grow the volume of associated petroleum gas utilization. In parallel, the company will minimize the risks associated with power shortages in oil production regions and high price volatility in the power market. As part of the strategy, in the forthcoming two years, TNK-BP intends to construct gas turbine power plants at the Van-Yoganskoe field located in the Nizhnevartovsk region of the Khanty-Mansiysk Autonomous District (with an installed capacity of 37 MW), and at Uvat fields in the Tyumen region (with a total capacity of up to 70 MW). Power plants projects are also considered for the Orenburg region (400-800 MW) and for Yamal fields (with a total capacity of up to 264 MW).
"TNK-BP has a clear strategy in the power sector. We invest to develop captive power generation in order to improve hydrocarbon production and processing performance. Within ten years, TNK-BP plans to satisfy more than 50% of its own power requirements. High energy efficiency is our strategic goal which will enable us maintain the development rate both at our brownfields and at our greenfields in new oil and gas provinces of Russia", stated Pavel Strunilin, Vice President, Power Supply, TNK-BP.
TNK-BP is Russia's third largest oil company, 50% owned by BP and 50% owned 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.
Posted 09/04/2010
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