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«SIBUR» LLC is the managing organization of PJSC «SIBUR Holding».

117218, Moscow, Krzhizhanovsky st., 16/1

New Unit Launched at Nizhnevartovsk Gas Processing Plant

A new oil absorption unit (MAU-3) which separates condensate from associated gas was launched today at the Nizhnevartovsk Gas Processing Plant, which forms part of Yugragazpererabotka LLC.

Renovation work on the unit began in 2007 and has been completed four months ahead of schedule. Total investment in the project was 800 mln roubles.

Following commissioning of the unit the processing capacity will increase by 700 mcm per year to around 4.6 bcm per year of associated gas at the Nizhnevartovsk GPP.

In the longer term there are plans for further expansion of the plant, including construction of a feedstock compressor station at the Nizhnevartovsk GPP, which will boost the plant’s capacity to 5 bcm per year of associated gas by 2010.

«We are working hard on a programme to substantially increase gas processing volumes by building new facilities», stated SIBUR Vice President Mikhail Karisalov. «These joint investments will enable us to supply Russia’s petrochemicals plants with additional feedstock volumes».

«The renovation of the MAU-3 unit means that associated gas that is currently being flared can now be accepted for processing. Completion of this project is one step in the Company’s long-term plan for increasing associated gas utilization in the region to the stipulated 95%», said Mikhail Gordin, Director of TNK-BP’s Associated Gas Processing Department.

«The renovation of the MAU-3 unit in 2008 and the processing unit #1 at the Belozerniy GPP will allow to exceed gas processing target of Yugragazpererabotka in 2008 by more than 500 mcm. The MAU-3 launch will have work relief at the facility», Alexander Teplyakov, General Director of Yugragazpererabotka LLC noted.

For Editors

In 2006 TNK-BP and SIBUR announced the creation of a joint venture called Yugragazpererabotka LLC (YGP). The aim of this new venture was to process associated gas produced by TNK-BP and other companies in the Nizhnevartovsk region. Ownership is of YGP is split 51% / 49% between SIBUR and TNK-BP respectively, with both parties exercising real operational control.

YGP comprises the Belozerniy and Nizhnevartovsk gas processing pants and their associated gas transportation infrastructure. TNK-BP has a long-term contract for the supply of associated gas to the plants. YGP processes the feedstock and TNK-BP offtakes 100% of the dry stripped gas, while SIBUR takes 100% of the liquid products.

Contacts for Media

Press Office

Anna Lebed

International Media Relations

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