June 26 (Bloomberg) -- BP Plc’s joint venture in Russia is having its “best year” after starting production from new fields and improving its safety record, said David Peattie, a non-executive director.

Production at TNK-BP rose 2 percent in May from a year ago, exceeding the 0.9 percent gain for the country as a whole, according to the Energy Ministry. The Verkhnechonskoye, Kamennoye and Uvat fields in Siberia were brought on stream in the past nine months. TNK-BP has only had one fatality this year, compared with six in 2008, Peattie said.

“It’s been a very, very strong year,” Peattie, who is also BP’s regional head, said in an interview in London yesterday. “Production is ahead of plan.”

Moscow-based TNK-BP, which accounts for about a quarter of BP’s production, agreed earlier this month to increase investment by $377 million this year, partly to fund plans to utilize more associated gas, pumped alongside crude oil. The company is also studying opportunities to expand outside of Russia, according to Peattie.

TNK-BP plans to hire more non-Russians to work at the company, in addition to about 20 BP staffers. It lost expatriate workers last year in a dispute over visas and work permits with its Russian partners.

“It’s a recognition of a need for TNK-BP” to recruit more foreigners, Peattie said.

On May 27, BP and its billionaire partners in TNK-BP named shareholder Mikhail Fridman as interim chief executive officer as they seek to find an independent CEO by the end of the year.

Robert Dudley, TNK-BP’s previous head, resigned last year as part of a deal to end internal splits over the management of the company.

Maxim Barsky, an ex-board member at West Siberian Resources Ltd., and former OAO Polyus Gold chief Pavel Skitovich on June 15 were appointed executive vice presidents at TNK-BP, with a view to one of them eventually taking over the top job.

“We have two very talented individuals now working at very senior positions,” Peattie said. TNK-BP has “been very successful and I think it will be for many years to come.”

To contact the reporter on this story: Eduard Gismatullin in London at egismatullin@bloomberg.net

Last Updated: June 26, 2009 05:44 EDT