TNK-BP said recently that the Vietnamese Ministry of Investment and Trade has granted TNK Vietnam, the Vietnam-based subsidiary of TNK-BP Group, the investment license to operate offshore gas Block 06.1, part of the Nam Con Son Integrated Gas to Power Project.
TNK-BP has acquired from BP a 35% stake in the offshore gas condensate production Block 06.1, which contains the Lan Tay and Lan Do gas condensate fields. The acquisition brings TNK-BP production of 17 thousand barrels oil equivalent per day on a net entitlement basis in 2011.
The Integrated Gas to Power Project also includes the Nam Con Son Pipeline, which is the world’s longest two-phase pipeline, and the Phu My 3 Electric Power Plant. As part of the deal TNK-BP will also acquire 32.7% and 33.3% stakes in these projects, respectively, pending lender and government approval.
Maxim Barskiy, Deputy Chairman of the Management Board, TNK-BP, commented:
“As Vietnam’s largest in-country gas producer, Block 06.1 plays an important role in meeting the country’s growing energy needs. As operator, TNK-BP will ensure best-in-class efficiency of operations, while at the same time keeping HSE as a top priority. Our company sees Vietnam as a very prospective market and will continue to review opportunities for deepening our presence in the country.”
TNK-BP is Russia’s third largest oil company, 50% held by BP and 50% held 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 8.794 billion boe as of December 31, 2010.
In October 2010, TNK-BP and BP announced a deal, by which TNK-BP would acquire BP’s stakes in upstream, pipeline and electricity assets in Vietnam and Venezuela for a total of $US 1.8 billion. The companies closed the Venezuela portion of the deal in June 2011.