Bloomberg News

TNK-BP's Oil Reserves Rise 2.9% After Output Replaced (Update1)

March 01, 2006

TNK-BP, BP Plc (BP/)'s Russian venture, increased its oil reserves 2.9 percent last year by exploring fields and increasing the amount it can extract from deposits where oil is already produced.

Proven liquid reserves rose to 8.23 billion barrels at the end of 2005 from 8 billion barrels a year earlier, according to U.S. Securities and Exchange Commission standards, the Moscow-based company said.

TNK-BP replaced 137 percent of its reserves after it produced 1.58 million barrels a day of oil last year, the company said in an e-mailed statement. That exceeded TNK-BP's ``enduring annual objective of at least 100 percent reserve replacement,'' it said.

TNK-BP, Russia's biggest oil exporter, is pumping water into oil reservoirs to force out more crude and has created a seismic-testing business to find overlooked pockets in existing fields. TNK-BP obtained government licenses last year to explore five prospects for oil and natural gas.

In its numbers, TNK-BP didn't include its natural gas reserves or its half of oil producer OAO Slavneft, a joint venture with OAO Gazprom's oil unit OAO Sibneft. The numbers were adjusted for the sale of assets in 2005, which included OAO Saratovneftegaz and OAO Udmurt Oil Co., TNK-BP said. The reserve replacement ratio was 149 percent, not including the sales.

The oil company, using Society of Petroleum Engineer specifications, boosted reserves to 9.23 billion barrels from 9.08 billion barrels a year ago.

U.S.-based DeGolyer & MacNaughton conducted the audit of the reserves.

To contact the reporter on this story: Michael Teagarden in Moscow at mteagarden@bloomberg.net.

To contact the editor responsible for this story: Tim Coulter at tcoulter@bloomberg.net.


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