NEWS

• BP has received unsolicited indications of interest regarding the potential acquisition of its shareholding in TNK-BP

• BP has, thereafter, notified Alfa Access Renova (AAR) of its intention to pursue the potential sale

TNK-BP highlights:

• Corporate structure: BP (50%) and AAR (50%)
• Upstream assets are located primarily in Russia - West Siberia, East Siberia, and Volga-Urals (Orenburg Region)
• As of 31-Dec-2011,
  • Proved Reserves (SEC reporting) – 9,900 MMBOE (49% gas)
  • Proved plus Probable plus Possible Reserves – 39,350 MMBOE (PRMS reporting)
• 2011 Production: 1.99 MMBOE/d

BP will enter into a 90-day period of "good faith" negotiations with Alfa Access-Renova, as required by the TNK-BP shareholder agreement, to sell a part or all of its 50% share in TNK-BP.

BP will also enter into negotiations, in parallel, with other interested parties for the sale.

AAR stated publicly that it was willing to buy one-half of the BP stake in TNK-BP (25%) at the current market price.

View AAR press release

Further to a recent statement from BP of its intentions to sell its 50% shareholding in TNK-BP, Rosneft and BP have expressed interest in commencing negotiations. BP and Rosneft confirmed they have signed a non-disclosure agreement.

BP also confirmed that while conducting parallel discussions with Rosneft and any other interested parties, it will negotiate in good faith with Alfa Access-Renova in accordance with its legal obligations.

Read Rosneft press release

TNK-BP has divested its 100% interest in OJSC Novoskibirskneftegaz and 71.09% interest in OJSC Severnoeneftegaz to a group of specialist Russian and foreign investors owning assets in the Russian oil and gas industry.

Asset Highlights:

• Novosibirskneftegaz is developing the Verkh-Tarskoe oil field with 12.6 MMT (99.5 MMbbl) of recoverable oil and condensate in A, B, and C1 categories. The company also owns two more licenses in the Novosibirsk Region.
• Severnoeneftegaz is developing Vostochno-Tarskoe and Maloichskoe fields with recoverable reserves of 1.8 MMT (14.2 MMbbl) in A, B, and C1 categories.

View TNK-BP press release

BP GoM Map Source: BP Jun-2012 quarterly report

In its Q2-2012 report, BP provided an update on its Gulf of Mexico (GoM) operations. The company plans to spend ~$4 billion in GoM out of the total 2012 capex of $22 billion; and expects to spend at the same level over the next few years.

The current asset portfolio in GoM includes:

• Production hubs such as Marlin, Horn Mountain, Na Kika, Holstein, Mad Dog, Atlantis and Thunder Horse
• Development projects such as Galapagos to start up in 2012, Na Kika Phase 3 to start up in 2013, Atlantis and Mad Dog to start up in Q3-2012

• 43 new leases awarded in the Jun-2012 lease sale
• Paleogene discoveries such as Kaskida and Moccasin where appraisal wells are expected to be spud in Q3-2012;
• Tiber appraisal well and Gila exploration well expected to be spud in 2013

The drilling activity in GoM is ramping up with the increased rig count.

• Six operating rigs with plans to have eight rigs in place by the end of 2012.
• Two of these rigs are currently working on production activities, two are drilling appraisal wells and two are working on plug and abandonment activity.
• By the end of Q1-2013, the company expects to have six deepwater rigs engaged in production enhancing activity.
• In particular, this activity will focus on restoring production on Thunder Horse and Atlantis to offset the decline from the reduced drilling over the last two years.