TNK-Brasil (a 100% subsidiary of TNK-BP Group) announced Monday that it has signed a farm-in and a joint operating agreement (JOA) with the Brazilian company HRT O&G. Through the deal TNK-Brasil will acquire a 45% stake in the Solimoes Basin project in Brazil.

The 21 oil and gas exploration blocks, majority owned and operated by HRT O&G, cover an area of approximately 48,500 square kilometers, are located in the Amazon's Solimoes basin. According to a Degolyer & MacNaughton reserves audit report, the blocks bring TNK-BP a net prospective and contingent resource of 789 Million barrels of oil equivalent (BOEs).

These include 11 discoveries, where oil and gas were tested. Initial production from the fields in the Solimoes basin is expected in 2012.

Commenting on the acquisition, Mikhail Fridman, Chief Executive Officer of TNK-BP said, “TNK-BP is pleased to have signed these agreements with HRT on the Solimoes Basin project, TNK-BP’s first venture in Brazil. The project will give the company access to significant new resources in one of the world’s fastest growing markets.

“TNK-BP is looking forward to a long and successful business partnership with HRT, as well as to new opportunities to deepen its footprint in the region,” said Fridman.
 
The companies intend to hold a formal ceremony and press conference in Rio De Janeiro, Brazil on 1 November, 2011 to officially mark the start of their new partnership.

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.

BP is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items.

TNK-BP is a vertically integrated oil company with a diversified upstream and downstream portfolio in Russia and Ukraine. The company’s upstream operations are located primarily in West Siberia (Khanty-Mansiysk and Yamalo-Nenets Autonomous Districts, Tyumen Region), East Siberia (Irkutsk Region), and Volga-Urals (Orenburg Region).

In 2010 the company produced on average 1.74 mboed (excluding its 50% share in Slavneft).

31st October 2011