In 2006 TNK-BP Is to Increase Its Realization of Oil by 6% and Lower Exports by 3%
22 Nov 2006
In 2006 the Russian-British joint venture TNK-BP expects to realize 82.5m tonnes of oil compared to the 78.1m tonnes of oil it realized in the previous year (5.6% growth), it was reported by Jonathan Kollek, Vice-President, STL, Downstream, at a press conference in Moscow on Tuesday.
The company press service stated that the volume of oil realization this year would include oil produced by TNK-BP itself, 50% of the production of NGK Slavneft, as well as the production volumes of JSC Udmurtneft prior to its sale in August earlier this year.
In 2005 TNK-BP produced 76m tonnes of oil, in which respect the head of the company Robert Dudley announced recently that in view of the sale of some of the production assets, production in 2006 would remain at approximately the same level as in 2005. Over the first eight months of 2006 Udmurdneft produced around 4m tonnes of oil. In 2006 Slavneft is expected to produce in the order of 24m tonnes of oil.
In the words of Mr. Kollek, in 2006 TNK-BP will reduce oil exports by 3% as compared with 2005 from 49.1m tonnes to 47.7m tonnes; supplies on the internal market will increase by 83% from 4.5m to 8.2m tonnes, while oil volumes dispatched for refining will grow by 9% from 24.5m to 26.6m tonnes.
He announced that sales of oil products in 2006 were expected to amount to 26.87m tonnes as compared with 25.76m tonnes the year before (4.3% more). In this respect, oil product exports will decrease by 2% from 14.8m to 14.6m tonnes, while the remaining volume is to be realized on the internal market both wholesale and via the sales network. As such, wholesale selling of oil products will lower by 14% from 4.2m to 3.6m tonnes in 2006, while realization via the sales network will grow by 30% from 6.7m to 8.7m tonnes.
Mr. Kollek noted that in 2006 TNK-BP was in first place in terms of sales volume of aviation kerosene at Moscow airports – 825,000 tonnes over the first ten months of this year.
Mr. Kollek also announced that in 2006 TNK-BP had begun exporting low-sulphur oil by rail to Finland at the rate of 25,000 tonnes per month. According to the company’s data, oil exports by rail amounted to 600,000 tonnes in March and around 400,000 tonnes in August.
In the words of the TNK-BP Vice-President, the rail network is trying to compete with Transneft in terms of price by offering special tariffs to oilers on deliveries to Finland.
The Vice-President remarked that Belarus, Kazakhstan (the oil refineries in Chimkent and Atyrau) and Astrakhan would become new oil export routes for TNK-BP.
On the topic of oil product exports, Mr. Kollek noted that in 2006 TNK-BP had begun exporting diesel fuel with sulphur content less than 50 ppm through the LUKOIL port in Vysotsk and also planned to export it via Tallinn, while as of 2007 TNK-BP plans to begin exporting diesel fuel with sulphur content less than 10 ppm from the oil refinery in Saratov.
As was reported in April this year, the Federal Tariff Service (FST) has introduced a discount rate on transporting oil to Finland by rail: 60% on conveyance of up to 20,000 tonnes per month and 70% on volumes above this.
The tariff reduction is valid for the conveyance of oil from Nyagan Sverdlovsk railway station to Buslovskaya Oktyabrskaya railway station in the direction of Finland.
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