NIZHNEVARTOVSK, Khanty-Mansi Autonomous District, Jul 20 (PRIME) — Russian oil company TNK-BP is unlikely to increase the level of associated gas use at its oil fields to 95% from the current 86% by January 1, 2012, Mikhail Slobodin, the companys Executive Vice President of the gas and power department, told reporters Wednesday.
However, Slobodin added that TNK-BP plans to reach the goal within the next 24 to 30 months.
Moreover, Slobodin said that the companys joint venture with Russian petrochemical company Sibur Holding is to play a major role in raising the level of associated gas use. The parties involved in the joint venture are currently in talks over expanding the period of operations by 10 years to 2026.
Specifically, Slobodin said that under the joint venture TNK-BP and Sibur Holding intend to increase gas processing volumes.
In mid-June 2010, Russias Natural Resources Ministry called for fines to be imposed on oil and gas companies for failing to meet associated gas utilization requirements. The ministry also said at the time that companies should try to meet the requirements by 2012. Tax cuts and zero import duties on equipment could be used as incentives for companies to raise their share of associated gas utilization, the ministry added.