10th Dec 2007 10:07
OAO TMK10 December 2007 MoscowDecember 10, 2007 TNK-BP and TMK extend global cooperation agreement to 2012 TNK-BP and TMK today announced that they had signed a new agreement on globalcooperation. According to the agreement, TNK-BP will buy a range of tubulars from TMK forapproximately two billion dollars over the five years to 2012. The previousthree-year contract with a planned supply volume of 500 million dollars expiresat the end of 2007. Success under the current contract has been achieved through the application ofTNK-BP's leading supply chain management practices, as well as TMK's efficientand flexible order management systems, and advanced quality control processes. This success has led to broadening the parties' future co-operation in a numberof areas including product development and the provision of regional tubularrepair services to TNK-BP. The new agreement is unprecedented being the largest single contract in thehistory of collaboration between Russian tubular manufacturers and oil and gascompanies. "We had no doubt that our strategy was correct when we entered into the globalcooperation agreement with TMK in 2005." said Robert Dudley, TNK-BP Presidentand CEO. "Through our joint efforts over the last three years, we have achievedexcellent results in quality enhancement, extension of the product range, andthe introduction of new tubular technologies. Our new agreement is not only thelogical development of our strategic partnership; it opens a new page in thetechnical and economic cooperation between our two companies". "TMK's strategy is based on long term partnership with oil and gas companies. Wedo our best to provide them with an innovative and broad range of products andservices. Our cooperation agreement with TNK-BP relies on best Russian andinternational practices of supply chain development for the energy sector,enhanced with additional expertise acquired throughout the implementation of thecompany's Strategic Investment Programme and TMK's expansion into oil and gasservices," said Konstantin Semerikov, TMK CEO. For further information please contact: TMK press office TNK-BPTel. +7495 775 7600 Marina Dracheva: +7495 363 6580Fax +7495 775 7601 Alexander Shadrin: +7495 745 7846E-mail: [email protected] Notes to Editors: OAO "TMK" Founded in 2001, TMK (LSE: TMKS) is the largest pipe producer in Russia and oneof the three global market leaders. In 2006, TMK sold approximately 3 million tonnes of pipes. TMK supplies tocompanies in more than 60 countries. TMK production facilities are located in Russia and Romania:•Volzhsky Pipe Plant;•Seversky Tube Works;•Taganrog Metallurgical Works;•Sinarsky Pipe Plant;•Orsky Machine Building Plant;•Truboplast pipe coating company;•SC TMK-ARTROM SA;•SC TMK-Resita SA. TNK-BP TNK-BP is a leading Russian oil company and is amongst the world's top-tenprivate sector oil producers. Established in August 2003, after BP merged its Russian oil and gas assets withthe oil and gas assets of Alfa Access Renova Group, TNK-BP is the 3rd largestRussian oil company based on oil reserves, production and refining throughput.The shareholders of TNK-BP also own approximately 50% equity interest inSlavneft, a vertically integrated Russian oil company. TNK-BP accounts for approximately 16% of Russia's liquids production (includingits 50% equity share of Slavneft production). TNK-BP's total proved reserves were 7.8 billion barrels of oil equivalent on aSEC (US Securities and Exchange Commission) life-of-field basis as of 31December 2006. This represents a reserve replacement rate of 129%, well abovethe industry average. The company's upstream operations are located primarily in West Siberia, EastSiberia and Volga-Urals. TNK-BP operates five refineries in Russia and Ukraineand sells fuel via a retail network of approximately 1,600 service stationsworking under the BP and TNK brands. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
TMKS.L