OREANDA-NEWS. July 12, 2007.  The large-scale project of the oil company TNK-BP and the Administration of the Tyumen Region for development of a group of fields in the southern part of the region is an excellent example of successful and mutually beneficial partnership of private business and the state. Recently, managers of the company and local authorities inspected the works for project implementation.

The investment project for development of hard-to-recover reserves in depleted field of the Tyumen Region and hydrocarbon reserves in the Uvat District with use and integration of advanced technologies is being implemented by TNK-BP in the framework of agreement on strategic cooperation with the administration of the region.

The Uvat fields were discovered back in 1970s, but their development was considered inexpedient at that time because of the complex geological structure of the oil-bearing strata, their deep occurrence, and the total absence of infrastructure. The problem of infrastructure is being solved now: TNK-BP has constructed 650 km of roads here and delivered 1.1 million tons of equipment and materials.

Now the Uvat Group of fields includes 16 license areas. Oil is currently being produced only in the Kalchinskoe license area (approximately 1.5 million tons a year). By 2009, after the launch of two more license areas, the Urnenskoe and Ust-Tegusskoe license areas, the production of hydrocarbons in the Uvat fields may grow up to 3 million tons a year. A production peak of 10 million tons a year will be attained in 2017–2018.

Recently, Vladimir Yakushev, Governor of the Tyumen Region, and with German Khan, Executive director of TNK-BP, visited these fields. The governor was satisfied with the progress of works in the fields. “This was a traditional visit to the fields TNK-BP is developing. This time we visited the Urnenskoe and Ust-Tegusskoe fields, which were absolutely naked fields last year. Today, we saw a modern construction site with good working conditions and new contemporary equipment,” said the governor.

“Implementation of the Uvat project is in full swing. We are following the schedule and fulfilling all our commitments related to this project,” said German Khan. “Works are performed here according to the highest standards in the world practice in terms of equipment, technologies, and labor conditions.”

According to Mr. Yakushev, the company will drill 16 wells in the Urnenskoe field by the end of the year out of the scheduled 32 wells and install a second drilling rig in the Ust-Tegusskoe field. Next year, said the governor, construction of a pipeline and a large segment of road will start in this area.

Mr. Khan noted that “the prospects of the Uvat project are impressive and inspiring and the company is expecting to increase the recoverable reserves of the Ust-Tegusskoe and Urnenskoe fields based on the results of geological exploration works conducted in these fields. According to the executive director of TNK-BP, the company will solve all problems related to the project. “This time, we visited the eastern hub. In winter, we will open two new fields in the central hub. The cornerstone of project success is, of course, infrastructure,” said Mr. Khan. According to him, in the nearest four years the company will make heavy investments into the project, the peak of which will be attained in 2008–2009.

In fact, development of the Uvat group of fields in the southern part of the Tyumen Region creates a new oil and gas province with a total reserve of 200–250 million tons of oil. Approximately $2.5 billion will be invested into this project in the nearest three years.