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TNK-BP bids for Conoco Vietnam

Published on Dec. 10, 2011

 
TNK-BP bids for Conoco Vietnam

Russia's TNK-BP, developing a gas project in Vietnam acquired from its major shareholder BP, has also bid for ConocoPhillips assets in the Asian country, TNK-BP's head of upstream operations Alexander Dodds said last week.

TNK-BP, a 50-50 joint venture between BP and a quartet of Soviet-born businessmen, has already taken over some gas assets in the South China Sea from its British co-owner and expressed its interest in expanding in Vietnam. It has said it will bid for one block of nine blocks on offer by the Vietnamese government in a tender which opens this week.
 
State oil and gas group Petrovietnam has already said it will bid for the ConocoPhillips assets, three oil fields and one gas field which are further north in the South China Sea.
Their location at a fair distance from TNK-BP's Vietnamese base means they are likely to be a low priority for the Russian producer, but the bid offers more evidence that TNK-BP's expansion drive will not end with the first round of purchases.
 
TNK-BP, which produces about 1.8 million barrels per day of oil equivalent, mostly at declining Soviet-era fields in Western Siberia, is going further afield to boost production to compensate for output losses in that region, which averaged 5 per cent last year.
 
It is deploying often-expensive new technology at some of Russia's oldest fields, and at the same time planning to launch new production in the latter half of the decade in Yamal, an Arctic peninsula which is Russia's next energy frontier.
 
TNK-BP management has board approval to pursue operations in three countries outside the former Soviet Union: Vietnam and Venezuela, where it bought assets from BP as it sold down its portfolio to pay damages for the Macondo disaster; and Brazil, where it bought into an exploration business.
 
Dodds said he may present the company's board with new upstream opportunities outside its existing asset base.

 

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