TNK-BP and PetroVietnam Sign ESPO Blend Oil Supply Contract
TNK-BP announces that today, as part of its long-term cooperation with Vietnamese state corporation PetroVietnam, it has signed the contract to supply Russian ESPO crude oil blend to Vietnam. This is the first time ESPO crude oil blend will be delivered to Vietnam. The first 100,000 ton shipment under the new contract will take place in November 2010.
The contract with PetroVietnam is an important milestone in TNK-BP’s development as an international company and is being implemented in line with the company’s strategic plan to develop its international trading operations.
“The signing of this contract to supply oil to Vietnam is a first and important step towards broad-based cooperation between TNK-BP and PetroVietnam. We are committed to establishing a long-term presence in Vietnam and to pursuing joint projects in the upstream and refining sectors”, said Maxim Barsky, Deputy Chairman of TNK-BP’s Management Board.
The ESPO oil blend has been supplied via the East Siberia – Pacific Ocean (ESPO) pipeline and loaded for export in the port of Kozmino since January 2010. TNK-BP is supplying oil from the Verkhnechonskoe field (Irkutsk region).
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.