TNK-BP

Former Russian oil company

TNK BP (Tyumenskaya Neftyanaya Kompaniya, ) was a major vertically integrated Russian oil company headquartered in Moscow. It was Russia's third largest oil producer and among the ten largest private oil companies in the world. In 2013 it was acquired by Russian oil company Rosneft. DeGolyer and MacNaughton confirmed that as of 31 December 2009 TNK BP's total proved reserves amounted to of oil equivalent.

On 1 September 2003, BP and a group of Russian businessmen represented by the AAR Consortium (Alfa Access Renova) announced the creation of TNK BP, a strategic partnership to jointly hold their oil assets in Russia and Ukraine. AAR contributed its holdings in TNK International, ONAKO, Sidanko, Rusia Petroleum (which held licenses for the Kovykta field and the Verkhnechonsk field), and the Rospan field in West Siberia (the New Urengoy and East Urengoy deposits). BP contributed its holdings in Sidanko, Rusia Petroleum, and its BP Moscow retail network. In January 2004, BP and AAR further agreed to incorporate AAR's 50% stake in Slavneft into TNK BP. Slavneft, which has operations in Russia and Belarus, was previously owned jointly by AAR and Sibneft (now Gazprom Neft). The joint venture was initially a 50 50 split, where both partners needed to agree on the course of future action. In 2009, TNK BP increased production to of oil equivalent (excluding TNK BP's share in Slavneft production) compared to of oil equivalent produced in 2008. In 2009, TNK BP's total proved reserves replacement ratio reached 329% according to PRMS methodology (formerly known as SPE). The average SEC LOF reserve replacement ratio over the past five years amounted to 139%. On 18 October 2010, TNK BP and BP reached an agreement for TNK BP to acquire BP's upstream and pipeline assets in Vietnam and Venezuela for an overall price of $US1.8 billion. In October 2011, the TNK BP agreed to acquire a 45% stake in Amazon oil exploration blocks from Brazil's HRT Participaoes for $1 billion. On 21 March 2013, Rosneft completed acquisition of TNK BP. According to Rosneft's CEO Igor Sechin, no discussion had been held on a buyout of minority shareholders in TNK BP Holding.

TNK BP is a vertically integrated oil company with a diversified upstream and downstream portfolio in Russia and Ukraine. Its upstream operations are located primarily in Siberia and Volga Urals region. In 2009 the company (excluding its 50% share in Slavneft) produced on average of oil equivalent. In downstream, TNK BP controls in installed refining capacity, with principal refining assets located in Ryazan, Saratov, Nizhnevartovsk, and Lysychansk. The company operates a retail network of approximately 1,400 filling stations in Russia and Ukraine working under the BP and TNK brands. The company is one of the key suppliers to the Moscow retail market and is a market leader in Ukraine. One of TNK BP's strategic goals is to expand its natural gas business. Its main gas asset in Rospan International, owned 100% by TNK BP. Rospan is located in the Yamal Nenets autonomous area with significant gas potential of of oil equivalent of natural gas 3P reserves and an ability to produce 15 billion cubic meters per year. One of TNK BP's stated long term aims is to enter into the international market. On 18 October 2010, TNK BP and BP reached an agreement for TNK BP to acquire BP's upstream and pipeline assets in Vietnam and Venezuela for an overall price of $US1.8 billion. According to the terms of the agreements, in Venezuela TNK BP will acquire from BP a 16.7% equity stake in the PetroMonagas SA extra heavy oil producer, a 40% stake in Petroperija SA which operates the DZO field, and a 26.7% stake in Boqueron SA. In Vietnam, TNK BP will acquire from BP a 35% stake in an upstream offshore gas production block containing the Lan Tay and Lan Do gas condensate fields, a 32.7% stake in the Nam Con Son Pipeline and Terminal, and a 33.3% stake in the Phu My 3 power plant. The company also acquired several other entities in Brazil. Thus, its oil production from international subsidiaries increased to 10% of TNK BP's total oil production. Over 2009, despite an average decline in crude oil price of 36% year on year, TNK BP generated profit of $5 billion. Since the company's emergence in 2003, TNK BP's profits have risen from $2.7 billion to $5.3 billion in 2009. In 2009, TNK BP produced 12.5 billion cubic meters of associated petroleum gas with a utilization rate of 84.4%. In 2011, the company's capitalization amounted to $60 billion.

In 2008, a corporate dispute between the major shareholders arose as BP and AAR seemed to have differing visions for the company's corporate governance structure and future strategy. During the dispute, it was rumoured that some Western BP executives experienced visa problems, and the American CEO Robert Dudley was accused by AAR of having violated Russian laws. On 4 September 2008, the parties to the dispute signed a five page memorandum of understanding, thus signaling the end of the disagreements. Tony Hayward, BP's chief executive at the time, described the five page memorandum as "a very sensible and pragmatic way of looking forward". In January 2010, BP and its Russian co shareholders held their first joint media briefing to pronounce their tensions gone and TNK BP. 's prospects bright. In January 2011, BP and Russia's state oil company, Rosneft, formed a strategic partnership on Arctic development. In March 2011 the Stockholm International Arbitration court blocked the BP Rosneft deal as breaching TNK–BP earlier contractual arrangements. BP had previously signed a shareholding agreement with AAR, which stipulated that TNK–BP would be the primary corporate vehicle for BP's oil and gas operations in Russia. AAR's legal action and minority shareholder's claims led to the collapse of the BP Rosneft deal in August 2011, when BP was replaced with ExxonMobil as Rosneft's strategic foreign partner in the Arctic.

TNK BP has been criticized for its Siberian oil spills. In 2012 Russia's Natural Resources Minister Yuri Trutnev announced that regulators plan to seek damages from TNK BP as one of the biggest polluters of the Ob and Yenisei river basins in Siberia. He also recommended the company prepare a plan for replacing its pipelines. Each year, 300,000 to 500,000 tonnes of oil and oil products are leaked into the Ob and Yenisei river basins, with TNK BP the biggest offender. In 2011 TNK BP reported a total 1,186 pipeline ruptures. According to TNK BP, the company has paid $2.1 billion for clean up since 2003 and has established a $500 million fund "to resolve the inherited environmental problems, accumulated since 1962."