OREANDA-NEWS. July 09, 2012. TNK-BP is organizing a captive power generation conference on July 11 for potential partners and investors, where it will present its plan for development of captive power generation and the current status of its captive power generation projects. TNK-BP hopes to attract an experienced partner and investor engaged in power generation to establish a joint venture for the construction of captive power generation facilities, primarily open-cycle gas-turbine power plants, reported the press-centre of TNK-BP.    

TNK-BP is prepared to offer up to 75% of the future joint venture to the key partner and guarantee return on investment at the level stipulated in the DPM agreement, based on long-term gas supply and power take-off contracts. TNK-BP will be the main consumer of electricity generated at the captive power plants of the joint venture. In the future, TNK-BP may consider the transfer of its existing capital power plants to the joint venture.

Major power generation companies, investors in the power industry, banks investing in the construction of power generation facilities, and large engineering, procurement and construction companies engaged in turnkey construction of power plants are invited to the conference.

Captive power generation is an area of a high-priority for the Company. In late March 2012, Mikhail Slobodin, Executive Vice President, Strategy and New Business Development, TNK-BP, presented the power supply optimization strategy to journalists and experts. By 2020, TNK-BP will invest USD1.2–3.0 billion into construction of captive power plants with an overall capacity of 550–1,800 MW depending on market environment. Invitation and participation of partners is one of the possible ways to reduce the costs of these projects.