Leveraging Technology / Delivering Growth

Bill Schrader

Chief Operating Officer

21 October 2010

TNK-BP at a glance

• A unique Russian company owned by BP and AlfaAccessRenova (50/50)

• Russia’s top-three and globally top-ten private sector oil producer

• Production 1.7 million bpd

• 139% average reserve replacement ratio in 6 years

• Well balanced Brownfield and Greenfield portfolio

• 25,000 km of pipelines

• 5 1/2 refineries in Russia and Ukraine

• Refining 675,000 barrels per day

• 1,500 TNK and BP branded retail sites

• 50,000 employees

• Paid $109 billion in taxes, duties and excise since inception

2

Brownfield: Samotlor

• World-class field (+ 55 bn bbl OOIP)

• Startup 1969.......now at +90% water cut

• Waterflood management

• Water shut-off

• ‘Stream-Line’ seismic modeling to target bypassed oil

Water Shut-off (chemical)Water Shut-off (chemical)

Streamline modeling delivers better understanding Streamline modeling delivers better understanding of reservoirsof reservoirs

Samotlor-Ryabchek

• Shallow horizon, thin-bedded reservoir

– Limited economic potential

• Technology breakthrough

– Long horizontal wells

– Multi-staged fractured completions

– Controls fracture vertical height

Conventional Frac

FiberFRAC*

Water ZoneWater ZoneWater Zone

J -FRAC

Greenfield: VCNG

• Pre-Cambrian field (+600 million years old)

• Highly complex geology, remote location

• Technology applied:

– Completion design avoids water ingress

– Better seismic models to improve understanding of reservoir and development concept

Completion design

Design endorsed by BP including drilling mud

review

Tidal channels

Fluvial system

Fans

Facies modeling KH map new model

113 643 1256

VC-1VC-2

Block 5

Block 2

Improved seismic models

Technology outlook

• 70+ technology pilots currently running

– Compared to 17 in 2009

• 2010 investment in technology pilots $110 million

• Building up capacity to deliver a new generation of Greenfield projects – Yamal