TNK-BP To Spend $1.3 Bln On Refinery Upgrades
MarketWatch Pulse Friday Oct. 9, 2009
FRANKFURT — TNK-BP, Russia’s third largest oil company, said Friday it will spend $1.3 billion over the next five years to upgrade its refineries in Russia and Ukraine in line with new official quality regulations. Its board also approved investment of over $400 million for the initial phase of the project in Yamal, an oil- and gas-rich peninsula in the extreme north of Russia. That project “has the potential to become a principal production centre for TNK-BP and Russia” as a whole, the company said in a statement. TNK-BP is 50% owned by oil giant BP Plc. Mikhail Fridman, executive chairman of TNK-BP said the company has proven resilient to macroeconomic challenges and exceeded targets set in the business plan, with production growth above 2.5%. “This gives the board confidence to endorse a series of long-term investment decisions that underline our commitment to develop long-term sustainable business in Russia and Ukraine,” he said.