TNK-BP plans capex rise after profit boost

TNK-BP

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By Bill Lehane and news wires

 29 February 2012 09:47 GMT

Russian-British joint venture TNK-BP has vowed to ramp up capital expenditure after reporting a 54% rise in net income to $8.981 billion in 2011 on the back of strong production growth and high oil prices.

TNK-BP plans to lift capital spending to $5.5 billion in 2012 from $4.7 billion in the past year, and to further ramp up spending to around $6 billion in 2013 and 2014.

The venture will use the funds to develop new greenfield projects in Russia's northern Yamal region and move to stabilize falling production in West Siberia.

"I expect we might reach $6 billion in the future, when we start to ramp up new projects, but then that will start to come back down again," chief financial officer Jonathan Muir said, according to…

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