TNK-BP Reports PetroMonagas Plans to Increase Oil Production in Venezuelan Field to 120,000 bpd in Early 2012

According to Jerome Auzenne, Technical and Operations Director, TNK-BP Venezuela Holding, the success of this drilling program will fully determine both improvement of project economics and evaluation of the production volumes, which requires the Project Team to address complex technical and organizational issues. 'Our synergy with the partners and establishment of good business relations will permit JV PetroMonagas and TNK-BP Venezuela to continue growing and developing efficiently', he said.

JV PetroMonagas is an integrated project that includes production of high viscosity heavy oil and its processing into lighter synthetic crude oil for export (high viscosity oil with a gravity of 8.1 °API is processed into synthetic oil with a gravity of 16 °API).

In October 2010, TNK-BP and BP announced their agreements on TNK-BP acquisition of the production, pipeline and power assets owned by BP in Vietnam and Venezuela for a total price of US$1.8 bln. The companies closed the Venezuelan asset acquisition transaction in June 2011.