TNK-BP profits fall but group grows reserves

RUSSIA’S third-biggest oil and gas producer TNK-BP yesterday said it replenished its reserves in 2009, helped by a rise in the end-year oil price although its profits fell on lower average prices over the year.

TNK-BP, half-owned by BP, said yesterday that under the US Securities and Exchange Commission’s methodology, which uses the year-end spot price and applies to the economic life of a field, recoverable reserves rose in 2009 to 8.6bn barrels of oil equivalent (boe) from 8.1bn boe in 2008.

Under the less stringent criteria of the Petroleum Resources Management System (PRMS), formerly known as the Society of Petroleum Engineers (SPE), TNK-BP’s reserves replacement ratio stood at 329 per cent as reserves rose to 11.7bn barrels last year from 10.25bn boe at the end of 2008. Net income fell 5.7 per cent to $5 bn.