TNK-BP looks abroad with $49 bn investment plan

15th September 2011, Comments 0 comments

Russia's number three oil company TNK-BP announced plans on Thursday to invest $45.0 billion (33.0 billion euros) in oil production in the next 10 years as it seeks to expand operations abroad.

The joint holding between the British giant BP and a group of Russian tycoons also said it will spend $4.0 billion on processing and marketing as it builds its foreign production share from 40 to 90 million barrels per year.

"Our projects in Vietnam and Venezuela are our first step in this direction," RIA Novosti quoted Executive Vice President Stan Miroshnik as saying.

BP receives about a quarter of its annual oil production and 10 percent of its profits from its Russian joint venture.

TNK-BP is one of the world's top 10 private oil producers and has been seeking ways to expand its production base beyond Western Siberia.

But it became roiled by a boardroom scandal when BP tried and eventually failed to reach an Arctic oil exploration agreement with Russia's state-controlled firm Rosneft.

TNK-BP also expressed interest in that project and a group of its minority shareholders have launched a $3 billion suit against BP and two of its executives for trying to orchestrate the Rosneft tie-up on their own.

© 2011 AFP

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