TNK-BP to raise efficiency of oil production 7% in 2009-2011
TNK-BP (RTS: TNBP) plans to reduce energy consumption in oil production operations by 7% in 2009-2011 compared with 2008, a company official told Interfax.
The year 2009 marks the start of a new phase in the energy efficiency program. The metric for the program is kilowatt-hours of electricity consumed per tonne of oil produced (rather than per tonne of oil-bearing liquid extracted).
"The need to change the approach to electricity consumption is largely due to the 20% increase in electricity rates in 2009 and the expected substantial price increases associated with the liberalization of the electricity market [which is slated to be fully freed by 2011].
The challenge becomes more difficult with time, because water cut is increasing at TNK-BP fields due to intensive development," the official said.
TNK-BP subsidiaries have already begun infrastructure projects in order to maximize the coefficient of efficiency, optimize transport flows of oil and oil-bearing liquid. In addition evaluations of various field development scenarios have begun. Those measures will reduce
marginal electricity consumption 1.5%-2% by the beginning of next year, the official said.
Development of an electricity conservation system is currently being discussed in the State Duma, where a bill addressing energy conservation and energy efficiency is in a second reading.
"TNK-BP supports the state's efforts in this area and believes it will benefit individual companies and the Russian economy overall. But achievement of the goals contained the bill will be possible only with effective and balanced mechanisms of administrative regulation and incentives. For that to happen, TNK-BP believes there must be a substantial change in the conceptual approach of the bill," the official said.
TNK-BP objects to a provision in the bill which would establish "sufficiency levels" of energy consumption for all consumers, with payments for deviations from that level, as well as the provision on regulatory enforcement. That mechanism will not stimulate improved