TNK-BP receives operationship of Vietnamese offshore gas block

TNK-BP recently signed the transfer agreements on Block 06.1 which confirm partner approval of the acquisition and that TNK-BP will take over the role of operator of the offshore gas Block 06.1 in Vietnam. The agreements, which will now be submitted to the Vietnamese Ministry of Industry and Trade to receive final governmental approval, were signed by the block’s former operator BP, as well as TNK-BP’s future partners in the joint venture, PetroVietnam and ONGC Videsh Limited of India.

The deal, by which TNK-BP will acquire BP’s stakes in upstream, pipeline and electricity assets in Vietnam and Venezuela for a total of $US 1.8 bln, was announced in October 2010. Block 06.1 is Vietnam’s largest in-country gas producer and will bring TNK-BP production of 18.8 thousand barrels oil equivalent per day on a net entitlement basis in 2011.

Maxim Barsky, Deputy Chief Executive Officer of TNK-BP, commented:

“We are confident that Block 06.1 is a high-quality asset that will enable TNK-BP to develop new expertise, particularly its offshore capabilities. As operator of Block 06.1, TNK-BP will ensure responsible operations and the highest commitment to environmental safety.”

The acquisitions in both Vietnam and Venezuela are on track to be completed in the first half of 2011
Source: TNK-BP