TNK-BP International Ltd.
Presentation for investors
October 2012
Important notice
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2
Table of contents
Introduction to TNK-BP
TNK-BP at a glance
Strong competitive position
Business Update
1H12 Highlights
Health, Safety & Environment
Upstream
Downstream
Financial Performance
Financial Highlights
IFRS
Business Environment
Net Income – 1H12 v 1H11
Revenues
Costs
Taxes
Net income - 2Q12 v 1Q12
Sources and Uses of Cash
Debt and Liquidity
Outlook
3
TNK-BP at a glance
Russia’s top 3 largest oil company*
Truly international player
• 1H12 production 2,035 mboe/d with affiliates
• Ranking in the world’s top 10 non-state-owned oil producers*
• Brownfield assets in West Siberia and Orenburg
• Venezuela: stakes in heavy and light oil projects
• Producing greenfields in Uvat and Verkhnechonskoye
• Vietnam: stakes in offshore gas and pipeline projects
• Yamal: a new generation of greenfield projects
• Brazil: stake in high potential exploration project
• Growing gas business
• Ukraine and Belarus: downstream business
BELARUS
RUSSIA
UKRAINE
World class reserve base
• 39 bn boe of PRMS 3P reserves
VIETNAM
VENEZUELA
• Reserve life of 21 years of 1P and
59 years of PRMS 3P reserves
• Industry-leading F&D costs and
exploration success rate
BRAZIL
Strong financial profile
• Investment grade credit ratings
Fully integrated business
• Strong credit metrics
• Four refineries and 50% stake in YANOS refinery in Russia
• Robust financial performance
• Refining capacity of 698 mb/d, refining cover of 38.4% in 1H12
• Extensive retail network with 1,274 retail sites in Russia, Ukraine and
Belarus**
* - based on total oil production
** - at the end of 1H12
4
Strong competitive position
Among top 10 oil producers globally
BP
2.2
2.2
PetroChina**
1.3
2.4
Shell
1.0
1.7
Chevron
1.5
1.8
Petrobras
0.8
2.2
Rosneft
0.5
2.4
Total
300%
3Y average SEC LOF RRR (2009-2011)
2.3
0.2
1.2
1.1
Lukoil
1.8
TNK-BP
1.7
0.3
200%
0.9
0.8
Statoil
0.9
0.7
ENI
0.8
TNK-BP
150%
ExxonMobil
100%
50%
0%
0
2
4
6
8
10
12
14
16
3Y average F&D costs (2009-2011), USD/boe
0.2
ConocoPhilips
Gazprom
Neft
Rosneft
250%
Best capital efficiency among Russian peers
20
16.5
0.7
Oil
Gazprom Neft
1.0
Sinopec
0.9
Gas
0.1
0.2
0
Source: company reports.
RRR - reserve replacement ratio
F&D – finding and development
1
2
3
*PetroChina production as of 2010
4
5
1H12 CAPEX/ boe, USD
2011 oil and gas production (incl. equity affiliates), mmboe per day
ExxonMobil
World class reserve replacement and F&D costs
15
10
14.2
13.8
Lukoil
Gazprom neft
7.1
5
0
TNK-BP
Rosneft
Source: Consolidated Financial Statement, MD&A reports of companies
5
1H12 highlights
Continued robust operational performance
•
2,035 mboe/d - total oil and gas production*, •
up 4.1%
•
18% greenfields contribution to liquids
production, up from 12% in 1H11
•
2.0 mln tons retail volumes in Russia, up 19% •
•
Continued refinery modernization with
share of Euro-4 and 5 fuels up from 42% to
66%
USD 5.9 bn EBITDA, down 21% on export
duty lag, tax and tariff increases and one-offs
USD 3.9 bn free cash flow,
up 9% despite EBITDA decline
Note: All data in this presentation are for 1H12 and comparisons are 1H12 v 1H11, unless otherwise noted
* Including affiliates
6
Health, Safety and Environment
Total Recordable Injury Frequency Rate – 12 Month Rolling Average
Health and Safety
0.8
0.7
0.6
•
The reduction of TRIFR* by 20%
0.63
0.5
0.35
0.4
•
The reduction of DAFWC by 10%
0.3
0.2
0.20
0.1
0
2008
2009
Environment
• Spills frequency continuously improving:
– The number of spills per thousand tons
produced down 13%
– Spilt tons per thousand tons produced
down 45%
2010
TRIFR
2011
2012
Spills Frequency – 12 Month Rolling Average
0.14
0.12
0.12
0.10
0.08
0.06
0.05
0.04
* Total Recordable Injury Frequency Rate (TRIFR) comprises the total number of
fatalities, lost time injuries, restricted work cases and medical treatment cases as per
OSHA definitions.
** The International Association of Oil and Gas Producers
1H12
2011 OGP ** average
0.021
0.02
0.006
0.00
2008
2009
2010
spills per ths. tons produced
2011
2012
1H12
spilt tons per ths. tons produced
7
Upstream: 1H12 overview
Strategy: Resources  Reserves  Production
 USD 4.7 bn Upstream EBITDA
 1,760 mb/d liquids production*, up 2.6%
 275 mboe/d gas sales*, up 14.3 %
 82.5% associated petroleum gas utilization
 13.8 bn boe proved reserves on PRMS basis**
 Focus areas:
 brownfields stabilization
 new greenfields
 challenged reserves
* Including affiliates
** As of 31 December 2011
8
Reserves
Strategy: Resources  Reserves  Production
Reserve base (PRMS)
•
•
Large reserve base: 39 bn boe 3P reserves
40
Reserve life
59 years
bn boe
35
An established track record of successful
reserve replacement:
30
 145% SEC LOF
15
Reserve life
42 years
Possible
Reserve life
21 years
Probable
Probable
Proved
Proved
Proved
1P
2P
3P
25
20
10

203% PRMS
5
0
•
Best-in-class efficiency:

72% average exploration success rate for
2009-2011
Reserve replacement ratio
350%
329
297
300%
322
250%


USD 4.4/bbl F&D costs (SEC LOF) in 2011
137 mmboe of resource adds with new
discoveries mainly in Yamal 1H12
203
179
200%
150%
127
149
104
177
156
146
126 129
134
145
82
100%
50%
0%
2004
2005
2006
2007
SEC-LOF
2008
PRMS
2009
2010
2011
9
Upstream: Liquids production in 1H12
Production – continued growth
• 1,760 mb/d liquids production incl. affiliates, up 2.6%
Changes in liquids production,
including affiliates
mb/d
1H1H11
2011
West
Siberia
Greenfields – increasing contribution
Orenburg
• VCNG production at 139 mb/d, up 60%
VCNG
• Uvat production at 126 mb/d, up 28%
UVAT
• Share of greenfields in total liquids production at 18%,
up from 12% in 1H11
Brownfields – target to stabilize production
• Orenburg liquids production down 0.6% - operational issues at
Vietnam
1,715
(51)
(3)
+52
+28
+1
+22
Venezuela
Slavneft
(4)
1H1H12
2012
1,760
Sorochinsk in 1Q12
• West Siberia liquids production down 5.6% (6.5% in 1H11)
10
Upstream: West Siberia
Production decline lowered by 0.9% in 1H12 v 1H11
Effective Waterflood Management
Improved drilling efficiency
•
New water shut-off technologies
being piloted and scaled up
•
•
Plan to reduce water extraction in
2012 by 1% (4.5 mln tons)
as result of new technologies moving
forward
•
Organizational capability improvement
project underway including skills
assessment, training, peer review from
external consultants
•
Mean Time Between Failure
(MTBF) of electric submersible
pumps increased to 630 days
(from 615 in 2011)
Low cost access drilling
projects with Baker Hughes,
Schlumberger and Halliburton
Innovative technologies in place
•
56 pilot projects (425 jobs) are
expected to be completed in 2012
•
“Asset of the future” concept of
online monitoring of the field
performance – to be scaled up
in 2012
Successful application of multistage fracturing in horizontal
wells:
 up to 7 stage fracs
 40 jobs performed in 1H12
 over 100 jobs planned for 2012
 tests in difficult layers with 2-3x higher flows than conventional frac
 advanced completion technology with fully controlled stage frac in
cemented liner
11
TNK-BP – 600 mln tons of challenged
reserves in 7 top fields in West Siberia
Technology pilots in 2012-2015 to scale-up and bring in production
Multi-stage frac
Tyumen formation – priority project for
challenged reserves development
 Multi-stage frac at Kamennoye licence area (LA)
 Pilots at Central Ryabchik of Samotlor field
Effective drilling and development
 Drilling project for Pad 118 of Severo-Khokhryakovskoye field
 PK1-2 Van-Egan - Pilot for viscous oil
 Pilot at Em-Yegovsky LA
Waterflood management and
water shutoff – integral part of West – Siberia
program for 2012-14
 Reconfiguration of waterflood system at SeveroVaryeganskoye field
 Reconfiguration of waterflood system at South Talinskoye LA
12
Yamal – major new oil province with
5.5 bn barrels of 3P reserves
Suzun
2016
Messoyakha
(50% share)
2016-18
• Field engineering survey
completed for oil treatment facility
and gas-turbine power plant
• Agreement with Transneft on
oil transportation signed
• Reserves: 0.32 bn bbl 3P PRMS
• 2012 E&A program is aimed at
viscous oil reserves
confirmation
Russkoye
2018
• Drilling of 7 pilot wells started in
June to determine base
development scenario
• Reserves: 1.14 bn bbl 3P
PRMS
Tagul
2019
• The optimal field infrastructure
concept prepared
• Pilot 1 under way, initial rates
confirmed for horizontal wells
• Reserves: 2.22 bn bbl 3P
PRMS
• E&A program under way to
prove reserves in least
understood zones
Intrafield pipeline
• Intrafield pipeline forecast for
completion by end 2015
• 2D/3D seismic to cover oilfield
frontier zones
• Reserves: 1.7 bn bbl 3P PRMS
Russko-Rechenskoe
2019
• Considerable gas reserves
discovered (>50 bcm)
13
Upstream: Gas sales in 1H12
Changes in gas sales, including affiliates
mboe/d
•
•
275 mboe/d gas sales incl. affiliates, up 14.3%
240
Rospan
+1
Increasing APG utilisation in West Siberia
(+4.5%) and Orenburg (+19.3%)
•
1H1H11
2011
West
Siberia
Orenburg
20 mboe/d gas sales from assets in Vietnam
and Venezuela
+8
+6
Vietnam
Slavneft
Venezuela
1H1H12
2012
+18
0
+2
275
14
International Projects:
Vietnam, Venezuela, Brazil
Vietnam
• Drilling of the 2nd Lan Do production well completed
safely in April, plan to deliver first gas from Lan Do
in 4Q12
Key performance indicators, 1H12 (TNK-BP share)
Production,
mmboe
EBITDA,
USD mln
Capex,
USD mln
Vietnam
3.5
116
53
Venezuela
5
-29
73
Brazil
0
-30
16
Venezuela
• TNK-BP net share of JVs production up 6% on
1Q12 to 28 mboe/d following successful drilling
campaign
• Current negative effect on EBITDA due to impact of
discounting of outstanding payments from PDVSA
Brazil
• Joint Operating Agreement Governance structure implemented; first OpsCom and ManCom in May
• Drilling operations: 2 wells completed in 2Q12, oil and gas shows in HRT-6, appraisal well HRT-7D dry,
drilling of HRT-8 and HRT-9 ended in 3Q12 with hydrocarbons discovery
• Exploration program being optimized
15
Downstream: overview 1H12
Strategy: Maximization of integrated business value of production
 USD 1.2 bn Downstream EBITDA
 654 mb/d refining throughput
 4 oil refineries and 50% stake in YANOS refinery in
Russia
 USD 12/bbl refining margin in 2Q12
 High-margin retail sales in Russia:
BP site daily throughput 4x European average
16
Downstream: Refining 1H12
•
Throughput of 618 mb/d at Russian refineries in 1H12 v 651
mb/d in 1H11 due to turnarounds
•
Healthy refining margins of USD 12/bbl in 2Q12 v USD 6/bbl
in 1Q12
Increasing share of
Euro-4 and Euro-5 fuels
70
60
50
•
Focus on Euro-4 and Euro-5 product delivery
•
Turnarounds at Yanos and Ryazan (RNPK) refineries
completed successfully
66.3%
40
30
20
41.9%
10
•
•
Transition completed to a 3 year turnaround cycle for AT-6
crude distillation complex at RNPK
LINIK refinery operations are still suspended
0
1H11
1H12
Note: Share of Euro-4 and Euro-5 fuels in total gasoline and
diesel output of TNK-BP Russian refineries
17
Downstream: Retail and B2B 1H12
Retail
th.tons
•
•
Expansion to new regions continues with 3 sites
purchased in Samara, 8 in Orel and 3 land plots
acquired in Volgograd
Launch of 7 new BP sites in Moscow and
St.-Petersburg and commissioning of 2 BP and
11 TNK sites after reconstruction
Retail volumes in Russia
1,600
,
1,400
, ,
1,200
,
1,000
,
800
1,385
600
1,162
400
•
The number of Carbon loyalty program participants
reached 650,000
B2B
200
510
607
0
BP brand
TNK brand
1H11
1H12
• Share of jet fuel sales directly to airlines in 1H12 increased to 73% v 45% in 1H11
• Jet deliveries started to air companies Tatarstan and I-Fly
• Development of TNK-Alfabit continues with bitumen laid at M1 federal highway, Rublevsky highway
and F1 race track in Volokolamsk
• Distribution agreement for Valvoline lubricants signed with sales starting in July
18
Financial highlights
IFRS
1H12
1H11
% Change
USD bn
EBITDA
5.9
7.4
-21%
Net Income
3.0
4.8
-38%
Cash flow from Operations
6.6
6.1
9%
Capex (organic)
2.4
2.2
8%
23%
22%
Gearing
19
1H11 under IFRS
• 1H11 and 2Q11 numbers have been restated for comparative purposes
• The main change relates to deferred tax, with higher forex driven
volatility under IFRS:
1H11 Net Income IFRS v US GAAP
USD bn
6
2Q11 Net Income IFRS v US GAAP
USD bn
3
7%
6%
5
(1%)
4
(0%)
(1%)
2
(1%)
3
2
4.8
4.5
1
2.6
2.4
1
-
1H11
US GAAP
DT
recalculation
Replacement
accounting
Other
1H11
IFRS
2Q11
US GAAP
DT
recalculation
Replacement
accounting
Other
2Q11
IFRS
20
Business environment
Urals
Weak environment both y-o-y and q-o-q,
with severe negative duty lag affecting
performance
Price
Duty reference price
Duty lag:-$13/bbl
Duty lag: +$7/bbl
USD/bbl
• Urals up 3% to USD 111.7/bbl
$111.7/bbl
$108.1/bbl
1H12 v 1H11:
• Negative duty lag: USD 9.0/bbl
120
2Q12 v 1Q12:
100
• Urals down 9% to USD 106.5/bbl
$116.9/bbl
$106.5/bbl
80
60
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
• Negative duty lag: USD 20.0/bbl
1H12 v 1H11 and 2Q12 v 1Q12: negative
impact of weaker rouble on deferred tax
partly offset by costs benefit
• 1H12 average rouble rate at 30.6, 7% down
• 2Q12 average rouble rate at 31.0, 2% down
21
Net income – 1H12 v 1H11
USD bn
5
4
(0.5)
0.1
(0.1)
3
(0.8)
(0.4)
4.8
(0.1)
2
3.0
1
1H11
Price &
Duty lag
Forex
Tarif f s & Tax
rates
Operations
One-of f s
Other
1H12
Environment:
Performance:
• Operations: total TNK-BP oil and gas production
• Price & Duty lag: negative duty lag – USD 9.0/bbl,
up 79 mboe/d (+4.1%), MET relief utilization
partly offset by 3% higher Urals and 60/66 duty
offset by costs increase and lower petroleum
regime benefit
production volumes
• Forex: negative impact on deferred tax partly offset
• One-offs: primarily due to 1Q12 Linik impairment
by forex benefit on rouble denominated costs
(USD 0.2 bn) vs. 1Q11 Kovykta disposal gains
• Tariffs & Tax: primarily increases in MET and excise
(USD 0.2 bn)
(USD 0.5 bn) rates and transportation tariffs (USD
0.1 bn)
22
Revenues
USD
35
0.4
0.3
30
1.7
0.1
• Price: 2% sales growth, on the
(1.4)
back of a 3% Urals price increase
25
20
15
Price
(+2%)
29.2
Volume & Mix Other
(+1%)
(+1%)
• Volume and Mix:
- 4 mmboe volume
30.3
118
increase in
crude and products due to 2.3%
own crude production growth;
- sales mix: products share
decreased primarily due to a
turnaround at the Ryazan refinery
in 2Q and suspension of crude
refining at Linik since March that
were partly offset by processing at
Mozyr
58
• Other sales:
10
5
1H11
Crude
Products
Crude
Products
Gas & Other
1H11
1H12
71
104
57
54
80
1H12
• Sales volumes up 12 mmboe, or 3%
• Products share* 41% in 1H12 vs 47% in
79
63
1H11
60
366 mmboe
378 mmboe
Crude - Export
Products - Export
Gas, Gas Products and Condensate
* Share from combined crude and oil products sales
Crude - Domestic and CIS
Products - Domestic and CIS
Primarily 8 mmboe increase in
sales of gas, condensate and
gas products
as a result of
production growth (incl. 4 mmboe
Vietnam contribution)
23
Costs
USD bn
3
Transportation costs:
Transportation
2
(6%)
7%
•7% weighted-average increase in Transneft
and rail tariffs partly offset by forex (6%)
1%
2.1
2.1
1
• Changes in routes and in sales mix resulted
in costs growth by 1% due to increased crude
export volumes via higher margin routes
0
1H11
Forex
2
Routes
1H12
Opex & SD&A dynamics reflecting inflationary
pressure mitigated by a weaker rouble:
OPEX & SD&A
USD bn
4
3
Tariff
(7%)
4%
2%
(3%)
• Costs down by 7% due to a weaker rouble
4%
3.5
3.5
• Volume & Mix factor reflecting production
growth
• One-offs: legacy environmental provision in
1H11 (USD 0.1bn)
1
0
1H11
Forex
Inflation Volume One-offs
& Mix
Other
1H12
24
Taxes
USD bn
16
Export duties, Taxes other than Income Tax
15
14
13
12
15.6
13.4
11
Environment
Legislation
Reliefs
10
1H11
30
Price
Duty lag
MET & Excise 60/66 regime Export duty
rate
MET
Volume&Mix,
other
1H12
Income Tax Rate
%
25
20
15
10
27.1%
17.5%
5
0
1H11 effective
rate
Forex
LINIK nondeductible
expenses
Deferred tax 1H11 Kovykta
valuation
disposal
provision
Other
1H12 effective
permanent
rate
differences
Export duties and Taxes other than income
tax up 16% to USD 15.6 bn primarily due to
higher Urals price and negative duty lag
• Increase in MET and excise rates starting
1 January 2012
• MET reliefs: sustaining production at
depleted fields in Orenburg and increase in
non-taxable VCNG production
• Volume&Mix, other: primarily increase in
crude export leading to growth in export
duties
Income tax increased by 15% to
USD 1.3 bn primarily through the foreign
exchange impact on the deferred tax
charge, non-deductible LINIK impairment
and operating losses in Ukraine
• 1H12 effective tax rate was 27.1%, above
the 20% statutory rate primarily due to the
foreign exchange impact on deferred tax
and non-deductible costs
25
Net income – 2Q12 v 1Q12
USD bn
3
2
(0.4)
1
2.2
(0.7)
0.1
0.2
0.8
(0.6)
-
1Q12
Price - Market
Price - Duty lag
Forex
Environment:
• Price: Urals down USD 10/bbl (9%)
• Duty lag: negative duty lag - USD 20.0/bbl
• Forex: primarily negative impact on deferred tax
Operations
One-of f s
2Q12
Performance:
• Operations: increased liquids production by 6
mb/d, partly offset by changes in mix in favor
of oil
• One-offs: largely due to 1Q12 Linik impairment
26
Income statement – 2Q12 v 2Q11
USD bn
2Q12
2Q11
%
Change
Revenues
14.3
15.4
-7%
Primarily lower Urals price
Export Duties
(4.7)
(4.2)
12%
Primarily negative duty lag partly offset by 60/66 regime
MET & Excise
(2.9)
(3.0)
-3%
Costs
(2.8)
(3.0)
-6%
11% rouble depreciation and legacy environmental
provision in 2Q11
Other
(1.7)
(1.8)
-10%
Primarily decrease in purchased crude and products
volumes
2.2
3.4
-34%
DD&A
(0.6)
(0.5)
Income tax & other
(0.8)
(0.7)
0.8
2.2
EBITDA
Net Income*
Lower Urals price and decrease of excisable products,
partly offset by increase in MET and excise rates
-63%
*Profit for the period attributable to Group shareholders
27
Sources and Uses of Cash
USD bn
6.2
8
6
Financing activities
Investing activities
Operating activities
1.5
(1.1)
(2.7)
(0.4)
4
3.9
(1.0)
(1.4)
2
2.4
1.3
1.3
Cash &
Cash f rom
deposits as operations
of
bef ore WC
31.12.2011
Income tax
paid
Change in
Working
Capital
Capex
Free Cash Acquisitions
Net
Flow
& Other
Borrowings
Dividends
Cash &
deposits as
of
30.06.2012
• Cash from operations (before WC and income tax paid) of USD 6.2 bn is net of
taxes other than income tax and export duties payment of USD 15.6 bn
• Capex: field development, associated gas, refinery and retail network modernization
• Acquisitions: exploration assets in Brazil and jet fueling complex Koltsovo
• Net Borrowings: decrease primarily due to $0.5 bn Eurobond and other debt
repayment
28
Debt and liquidity
Borrowing
TNK-BP Financial indebtedness(1)
• No new borrowings in 2Q12
• Two committed lines for the total amount
of USD 200 mln renewed
• Gearing level at 23%
• Average portfolio life at 3.53 years
30.06.2012
31.03.2012
30.06.2011
$8.0 bn
$8.4 bn
$6.9 bn
$7.2 bn
$7.4 bn
$6.9 bn
$0.8 bn
$1.0 bn
-
23%
29%
22%
62% / 38%
61% / 39%
79% / 21%
99%
99%
96%
LT / ST debt
84% / 16%
85% / 15%
77% / 23%
Unsecured / Secured
100% / 0%
100% / 0%
100% / 0%
Portfolio average life
3.53 years
3.72 years
3.86 years
Financial indebtedness,
incl.:
- Finance debt(2)
- Letter of credit
(3)
(4)
Gearing
Liquidity
• Strong cash balances maintained
• Five undrawn committed lines in the total
amount of USD 420 mln
Fixed / Floating
USD denominated
• Smooth repayment profile
Financial indebtedness maturity profile as of 30 June 2012
Ratings
• Investment grade ratings maintained, however
negative outlook assigned by Moody's to Baa2
rating (related to shareholder ownership
uncertainty)
• Strong credit metrics maintained
(1)
(2)
(3)
(4)
Financial Indebtedness and Gearing are calculated based on IFRS
Finance Debt includes outstanding indebtedness under loan agreements and Eurobonds
Represents deferred payment obligation in favor of HRT related to Brazil assets acquisition
2Q2012 and 1Q2012 calculation includes the letter of credit; 2Q2011 Gearing calculated
based on US GAAP amounts to 22%
Other
Bank debt
$ mln
,
1,600
13
1,400
,
400
Letter of credit
Eurobonds
32
200
1,200
,
1,000
,
587
800
1,217
600
400
200
643
200
600
1,000
1,100
800
500
500
244
0
H2
2012
2013
2014
2015
2016
2017
2018
2019
29
2020
Outlook
Reserves  Production
Margin
enhancement
Gas
monetization
 Lower production decline
in West Siberia
 Progress with refinery
modernization program
 Prepare for Rospan
full field development
 Pilot development of
challenged reserves
 Increase retail
presence in core
markets
 Negotiate long-term
sales agreements for
Rospan gas
 Launch new products
and promote the new
highway offer
 Increase associated
gas utilization
 Prepare to launch Yamal
fields in 2016-2019
International
diversification
 Progress with
exploration program in
Brazil with focus on oil
prone areas and gas
monetization
 Consider additional
expansion opportunities
in Vietnam
Health, Safety and Environment: continues as a top priority
Portfolio: pursue select M&A opportunities
30
TNK-BP Holding –
public subsidiary with leading investor returns
TNK-BP Holding dividends attributable to non-controlling
interest*
350
mln USD
324
319
300
250
246
Cash returns 2006-11 as a share of Mcap at end 2005*
70%
63%
60%
256
50%
50%
228
48%
40%
200
152
30%
150
104
100
20%
50
10%
0
0%
2005
2006
2007
2008
2009
2010
2011
* Amounts are stated in years to which dividends are attributable. Dividend
calculation based on Company and registrar data
24%
23%
20%
4%
TNK-BP
Holding
Exxon
Mobil
Chevron
BP
Royal
Dutch
Shell
LUKoil
* Cash
Gazprom
returns are calculated as the share buyback, dividends and change in net debt
Source: Bloomberg; Troika estimates
 ¾ of 44 bn USD 2005 market cap returned to shareholders as of end August 2012
 USD 1.63 bn attributable to non-controlling interest since 2005
 16% dividend yield – highest in the industry*
 98% - average dividend payout ratio based on RAS net income amounts
* Source: Troika Dialog research, report dt. 21/09/12
31
Board of Directors
Mikhail Fridman
Chairman
The Rt Hon Lord (George)
Robertson
of Port Ellen
Deputy Chairman
Michael Townshend
Evert Henkes
Len Blavatnik
President of BP Iraq
Independent Director
Chairman, Access Industries
Brian Gilvary
Alexander Shokhin
Group CFO, BP
Independent Director
Chairman of Pamplona Capital
Management
David Peattie
TBC
Viktor Vekselberg
Head of BP Russia
Independent Director
Chairman, Renova Group
representatives of AAR
representatives of BP
independent directors
Alex Knaster
32
TNK-BP corporate structure
1
Alfa, Access/Renova
50%
50%
BP
TNK-BP Ltd (BVI)
Slavneft
(JV with
Gazprom Neft)
100%
c.50%
100%
TNK-BP
International Ltd (BVI)
c.95%
Lisichansk
Refinery
(Ukraine)
TNK-BP Finance
S.A. (Luxembourg)
100%
100%
TNK Overseas Ltd
TNK-BP Commerce
(Ukraine)
TNK-BP
Management
100%
95%
TNK-BP Holding
Upstream
Refining
Marketing
33
Management structure of TNK-BP
Chairman of the
Management Board
Vacant
Executive Director –
Vice President
Upstream
A. Dodds
Executive Director –
Vice President
Downstream
A. Barrios
Executive
Vice President
Support Services
A. Tyomkin
Chief Financial Officer
J. Muir
Executive Director –
Advisor to the Chairman
of the MB
V. Vekselberg
Executive Vice President
Strategy and New
Business Development
M. Slobodin
Executive
Vice President
Legal
I. Maydannik
Executive Director
G. Khan
members of the Management Board
34