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TNK-BP and the Saratov Region Administration Signed a Cooperation Agreement for 2006
11 Jan 2006

On January 10, 2006, Vladimir Meshkov, Director of TNK-BP Povolzhye, and Alexei Shcherbakov, Vice Chairman of the Saratov Region Administration, signed an agreement of cooperation between the regional administration and the oil company TNK-BP in 2006.

This document ensures a comprehensive approach to the solution of urgent problems of the region and defines the principles of social partnership between the society and business followed by TNK-BP in the regions of its presence. The agreement implies cooperation of the parties for the development of the resource potential and the industrial complex of the region, environmental protection activities and implementation of social programs.

Vladimir Meshkov, Director of TNK-BP Povolzhye:

“According to the signed document, the tax receipts from the Saratov-based enterprises of TNK-BP in 2006 will exceed 1.34 billion rubles. The investments into the industry modernization will amount to 784 million rubles, and more than 120 million rubles will be spent for environmental protection measures and 37 million rubles for labor safety.

“TNK-BP will continue helping agricultural producers. The agreement implies supplies of approximately 130,000 tons of diesel fuel to them at privileged prices with a discount of up to 10% of the sale price.

“The social programs of TNK-BP will be developed further for financing projects related to culture, education, healthcare and sports through the charitable fund Raduga.”

Alexei Shcherbakov, Vice Chairman of the Saratov Region Administration:

“I would like to emphasize that in 2005 the oil company TNK-BP has fulfilled all of its obligations under the agreement of cooperation with the Administration of the Saratov Region. In particular, the company has financed social programs in the region for 50 million rubles. The tax receipts from the company exceeded the expected figures by more than 800 million rubles. The company has offered invaluable help to the agricultural producers of the region by providing them with 122,600 tons of diesel fuel at privileged prices during the sowing and harvesting campaigns, which saved them more than 180 million rubles. Much attention was paid to investments into production and environmental protection. Special emphasis should be made on the coordination of activities and mutual understanding with the management of TNK-BP for the implementation of the agreement.”

TNK-BP in the Saratov Region

Production and Investments:

The activities of TNK-BP in the Saratov Region are associated with the processing and sales of oil products. The main enterprises of TNK-BP in the region are the Saratov Refinery and OAO SaratovNefteProdukt. The total headcount of the regional enterprises of TNK-BP exceeds 3500.

In 2005, the Saratov Refinery processed more than 5.5 million tons of oil using over 90% of its industrial capacity. The production line of the refinery includes more than 20 kinds of oil products: gasoline of different grades, diesel fuel, residual fuel oil of all principal brands, different types of bitumen, vacuum gas oil, and roofing materials. Three products of the Saratov Refinery – roll roofing material, winter diesel fuel, and Premium 95 gasoline – were prize and diploma winners of the contest “100 Best Products of Russia.”

A scheduled major overhaul of the process equipment was carried out at the Saratov Refinery in 2005, which increased the depth of oil processing. A new computerized laboratory control system LIMS (Laboratory Information Monitoring System), which is an efficient tool for controlling the quality of product flows at the refinery, was commissioned and put into operation a month ahead of the schedule.

The network of retail outlets of OAO SaratovNefteProdukt includes more than 100 filling stations. Intensive activities for transferring the network of retail outlets to the TNK brand has begun in 2005, which implies creation of a new image of the filling stations, their modernization, and a higher quality of customer service.

TNK-BP

TNK-BP is a major, vertically integrated Russian oil and gas company. In 2007, average daily oil production totaled 1.6 million barrels per day (excluding a 50% interest of Slavneft). TNK-BP operates five refineries (four in Russia and one in Ukraine) and nearly 1,600 branded retail outlets across both countries.


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