Vanyoganneft is currently 50% owned by U.S.-based Occidental of Russia and 50% by TNK-Nizhnevartovsk (formerly Chernogornneft), a TNK-BP subsidiary in Western Siberia. The joint venture is an independent company, managed by a board of directors composed of four representatives from each joint venture partner.
"We are expecting to close the deal in the first quarter of 2007 following standard approval procedures by Russian state regulatory bodies," TNK-BP said in a statement. "As a result, TNK-BP Holding will become the sole owner of Vanyoganneft."
Vanyoganneft was formed in March 1992 to develop and produce oil from the Van Yogan and Ay Yogan fields in Western Siberia. The company's current operations are authorized by two production licenses issued by the Russian Federation in 1993 for a 20-year term, with a possibility of renewals.
The company currently produces 2.2 million metric tons of crude per year (45,000 bbl/d) and had reported proven reserves of about 25 million tons as of December 31, 2005.
TNK-BP is a leading crude producer in Russia, also ranked among the world's top 10 independent oil companies. The company's operations are located in Western and Eastern Siberia, and in the Volga-Urals Region.
