TNK-BP Senior Executives Meet Minister Trutnev 13 Nov 2006
TNK-BP today announced that Executive Director German Khan and Chief Operating Officer Tim Summers, met with RF Minister of Natural Resources Yuri Trutnev. The meeting focused on idle well stock at TNK-BP fields.
The executives briefed the ministry on the current situation with idle wells. Specifically, they discussed the significant legacy of idle wells, inherited by TNK-BP, and informed the Minister about the comprehensive idle well stock reduction program which is currently being implemented across TNK-BP.
TNK-BP is currently developing 143 fields, and the total stock of producing wells is 21,229. In 2006, the stock of idle wells was 8,362 (39% of the total number of development wells), with eight key fields accounting for 82% of idle wells.
TNK-BP advised the Ministry that since the company’s formation it had drilled some 1200 new wells and already reactivated some 4,500 previously idle wells.
Presenting the future idle well stock reduction program TNK-BP said that already in 2007 the company plans to perform about 2,000 well workover jobs, abandon 360 wells which have either been fully exhausted or are unusable, and reduce the number of wells annually made inactive by 350.
The program is designed for the period up to 2011 and has been agreed with the Ministry of Natural Resources. Total investment under the program will reach $2.2 billion, which will be used to perform 11,000 wellwork jobs on idle wells. Some $611 million of this amount will be invested in 2007.
In the first 10 months of 2006 the Company has further reduced the total number of TNK-BP idle wells by 266 (from 39.4% to 36.9% of the total number of development wells). By the end of 2007 TNK-BP plans to bring this figure down to 31%, and by 2009 – to 20% or less. This is average of the idle well targets across all TNK-BP’s field development documentation.
TNK-BP
TNK-BP is a major, vertically integrated Russian oil and gas company. In 2010, average daily oil production totaled 1.74 million barrels per day (excluding a 50% interest of Slavneft). TNK-BP operates five refineries (four in Russia and one in Ukraine) and nearly 1,490 branded retail outlets across both countries.
