TNK-BP to invest 800M Rubles in construction of new sulphur removal facilities

This is to inform you that LLC Buguruslanneft (part of Orenburgneft, a 100% TNK-BP Subsidiary) is finalizing the construction of sulphur removal units in the Zaglyadinskoe and Krasnoyarskoe fields. The facilities are planned to be commissioned in December 2012. Total investments in the project will amount to over 800 mln rubles.

The Zaglyadinskoe and Krasnoyarskoe fields are among major ones in Buguruslanneft. As of the beginning of 2012, total booked reserves (C1+C2) were 64.7 mln tons.

Orenburg region fields account for 9% in the Company total reserves in Russia (3.42 bn boe under 3Ð PRMS category as of December 31, 2011) and more than 1/4 of production.

"Project completion will allow the company to significantly improve the quality of oil and stop using chemical methods of hydrogen sulphide neutralization by transferring to more economic and environmentally friendly sulphur removal methods," said Igor Kristyan, General Director, LLC Buguruslanneft.

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