TNK-BP in talks to buy oil & gas production assets in Ukraine

TNK-BP is in negotiations on joining oil and gas production projects in Ukraine, the Russian company's Senior Vice President for International Projects and Business Development Boris Zilbermints told reporters.

"We are at quite an advanced stage of negotiations on acquiring assets [in Ukraine]," he said. "There are three basins in Ukraine, and we are looking at all of them," Zilbermints said, noting that TNK-BP is currently considering six to eight projects in Ukraine. In particular, the company is interested in investing in small production companies.

TNK-BP is interested in developing exclusively dry-land projects in Ukraine; it is not considering any offshore ones, he said.

The Russian company is eyeing both new oil and gas production projects in Ukraine and projects to increase production at old fields, Zilbermints said.

TNK-BP is very familiar with the Ukrainian market and is attracted by the country's high natural gas prices.

"Gas prices in Ukraine are the highest in the world right now. We understand that they won't be like that forever, nor is there expected to be a catastrophic decrease," he said.

Last year, TNK-BP bid in a production sharing agreement (PSA) tender for the Yuzovska gas zone, but Shell was the winner.