TNK-BP to Boost Spending After Posting Record Annual Profit
Expenditure will probably rise 17 percent to $5.5 billion this year as the company increases investment in oil and gas projects in Russia’s Yamal region, Chief Financial Officer Jonathan Muir told journalists today in Moscow. The figure may increase to $6 billion the following year, he said.
TNK-BP plans to keep output growing as Siberian deposits decline with oil and gas from the Yamal region and international projects. The company is seeking to produce 500,000 barrels of oil equivalent a day from Yamal by 2020, it said today in a presentation. TNK-BP’s oil and natural gas output in the fourth quarter rose to 2.04 million barrels a day, the company said.
Output from assets in Vietnam and Venezuela acquired last year will probably average 40,000 barrels of oil equivalent a day this year, Muir said. The Moscow-based company has also handed information to Brazilian regulators over an acquisition in the country, he said. TNK-BP may borrow as much as $2 billion this year, with about half replacing debt coming due, Muir said.
Net income rose 55 percent to a record $9 billion last year on higher oil prices and output, and after the company paid $7.9 billion in dividends to shareholders BP and AAR, which holds the billionaires’ interests, according to a company presentation. Fourth-quarter profit rose 12 percent to $2.17 billion on sales that grew to $15.7 billion from $12.5 billion a year before.
The price of Urals crude, Russia’s main export blend, averaged $108.82 a barrel in the quarter, up 28 percent on the same period last year, according to Bloomberg calculations.
To contact the reporter on this story: Stephen Bierman in Moscow at email@example.com
To contact the editor responsible for this story: Brad Cook at firstname.lastname@example.org