Russia: TNK-BP to Spend us$1.3bn in Production & Downstream
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Monday, 12 October 2009 |
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TNK-BP has announced important investment decisions made at the meeting
of the Board of Directors of TNK-BP Limited. The investment will
include spending $1.3 billion over the next five years to upgrade its
refineries in Russia and Ukraine in line with new official quality
regulations.
The Board approved investment of over $400 mln for the initial phase
of the Yamal project which has the potential to become a principal
production centre for TNK-BP and Russia on the whole. The
Board endorsed the fuel quality investment program of $1.3 bn over the
next five years to upgrade TNK-BP’s refineries in Russia and Ukraine in
line with new official quality regulations. The fuel quality program
consists of 11 projects of varying timelines. The Board supported the
first significant project of the programme, construction of an
isomerizaiton unit at the Saratov refinery for $150 mln.
“We are pleased with the progress made by TNK-BP in the first nine
months of 2009. The company has proved resilient to macroeconomic
challenges and exceeded targets set in the business plan with
production growth above 2.5%, “said Mikhail Fridman, Executive Chairman
of TNK-BP Ltd., “This gives the Board confidence to endorse a series of
long-term investment decisions that underline our commitment to develop
long-term sustainable business in Russia and Ukraine.”
Earlier this week, it was reported that BP is resigned to leaving
management control of its key Russian venture TNK-BP in the hands of
its oligarch partners to avoid a new corporate war. It is most
likely that current interim Chief Executive Mikhail Fridman, one of the
key Russian co-owners, will retain his position and would keep his
ally, German Khan, TNK-BP's co-owner and executive director, to run the
day-to-day operations into the new year, the sources said.
BP spokesman Vladimir Buyanov said talks were still under way to choose
a new chief. "We want to make sure we have the right person to lead
this very successful company," he said. BP still has its person in the
position of chief operating officer.
PetrolWorld 091009
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