TNK-ВР and Schlumberger, a leading oilfield services company, have signed a contract to jointly implement a pilot project to develop hard-to-recover hydrocarbon reserves in the Severo-Khokhryakovskoe field in the West Siberia.

The new format of cooperation serves to enhance the field production efficiency by increasing production per well and formulating the optimal asset development scenario involving the technology of multistage fracturing in horizontal wells.

The companies agreed to jointly prepare and implement a comprehensive production program for the hard-to-recover reserves development. The program will be based on the understanding of the project’s cost efficiency at each of the development stages with a target to increase the oil recovery factor.

Under the terms of the contract, Schlumberger will coordinate all operations and provide the entire range of oilfield services within the framework of the project. The contract includes a provision on the correlation between the contractor’s remuneration and production efficiency.

“Developing hard-to-recover reserves is cost efficient only subject to use of advanced technologies and an integrated approach to the development of the entire asset. Our pilot project with Schlumberger in the Severo-Khokhryakovskoe field is a new interaction system for the company under which an oilfield services contractor not only provides the entire range of high-tech services and unique solutions controlling the whole suite of operations but is also economically engaged in getting the best result due to the KPI system,” said Mikhail Slobodin, TNK-BP Executive Vice President, Strategy and New Business Development.

About TNK-BP
TNK-BP is Russia’s third largest oil company, owned by BP and the AAR consortium (Alfa Group/Access Industries/Renova) on a parity basis. Additionally, TNK-BP owns approximately 50% of the Russian oil and gas company Slavneft. TNK-BP’s share in Russia’s oil production (including its share in Slavneft) is about 16%. The Company’s total proved SEC LOF reserves (not taking into account the licenses validity period) are 9.115 billion boe as of December 31, 2011.

References to “TNK-BP” or “the Group” mean “TNK-BP International and the Company’s consolidated subsidiaries” unless the context requires a different reading.

About Schlumberger
Schlumberger is the world's leading company, providing technology services to oil and gas industry. Founded in 1926, today the company operates in more than 80 countries, working with leaders of the world oil and gas industry. More information about Schlumberger is available at www.slb.com