Operations
TNK-BP is a vertically integrated oil company with a diversified upstream and downstream portfolio in Russia and Ukraine. Its upstream operations are located primarily in Siberia and Volga-Urals region. In 2009 the company (excluding its 50% share in Slavneft) produced on average 1.69 Moilbbl/d of oil equivalent.
In downstream, TNK-BP controls 675 koilbbl/d in installed refining capacity, with principal refining assets such as Ryazan Refinery, Saratov Refinery, Nizhnevartovsk Refinery, and Lysychansk Oil Refinery. The company operates a retail network of approximately 1,400 filling stations in Russia and Ukraine working under the BP and TNK brands. The company is one of the key suppliers to the Moscow retail market and is a market leader in Ukraine.
One of TNK-BP's strategic goals is to expand its natural gas business. Its main gas asset in Rospan International, owned 100% by TNK-BP. Rospan is located in the Yamal-Nenets autonomous area with significant gas potential of 1.4 Moilbbl/d of oil equivalent of natural gas 3P reserves and an ability to produce 15 billion cubic meters per year.
One of TNK-BP's stated long-term aims is to enter into the international market. On 18 October 2010, TNK-BP and BP reached an agreement for TNK-BP to acquire BP's upstream and pipeline assets in Vietnam and Venezuela for an overall price of $US1.8 billion. According to the terms of the agreements, in Venezuela TNK-BP will acquire from BP a 16.7% equity stake in the PetroMonagas SA extra heavy oil producer, a 40% stake in Petroperija SA which operates the DZO field, and a 26.7% stake in Boqueron SA. In Vietnam, TNK-BP will acquire from BP a 35% stake in an upstream offshore gas production block containing the Lan Tay and Lan Do gas condensate fields, a 32.7% stake in the Nam Con Son Pipeline and Terminal, and a 33.3% stake in the Phu My 3 power plant.
The company also acquired several other entities in Brazil. Thus, its oil production from international subsidiaries increased to 10% of TNK-BP's total oil production.
Over 2009, despite an average decline in crude oil price of 36% year-on-year, TNK-BP generated profit of $5 billion. Since the company's emergence in 2003, TNK-BP's profits have risen from $2.7 billion to $5.3 billion in 2009.
In 2009, TNK-BP produced 12.5 billion cubic meters of associated petroleum gas with a utilization rate of 84.4%.
In 2011, the company's capitalization amounted to $60 billion.
