TMKS.L Regulatory News (TMKS)

20 Mar 2007 07:01

OAO TMK20 March 2007 March 20, 2007 Rosneft and TMK Sign Strategic Partnership Agreement OAO NK Rosneft ("Rosneft") and OAO TMK ("TMK") announced today that they haveagreed to develop a long term strategic partnership. The agreement was signed inMoscow by Rosneft's First Vice President Sergei Kudryashov and TMK's CEOKonstantin Semerikov. The partnership has been agreed for an initial period of three years with anoption for an extension, if agreed by both parties. Under the terms of thepartnership, TMK and Rosneft will form a supervisory board to manage theventure, review ongoing strategy and make any necessary adjustments. The partnership will ensure optimal coordination of the design and production ofnew types of pipes supplied by TMK to Rosneft for use in the oil and gasindustry, both in the medium and long term. OAO TMK (www.tmk-group.com) Founded in 2001, TMK (LSE: TMKS) is the largest pipe producer in Russia and oneof the three global market leaders. TMK GDRs and common shares are traded on theLondon Stock Exchange and Russian Trading System. In 2006 the total volume of pipes shipped reached over 3 million tonnes. TMKsupplies pipes to companies in more than 60 countries. TMK production facilities are located in Russia and Romania: • Volzhsky Pipe Plant • Seversky Pipe Plant • Taganrog Metallurgical Works • Sinarsky Pipe Plant • Orsk Engineering Plant • SC TMK-ARTROM SA • SC TMK-Resita SA OAO NK Rosneft (www.rosneft.com) In 2006 Rosneft has demonstrated industry-leading growth rates in itsoperational indicators. According to preliminary data, production of oil and gascondensate has reached 80.6 million tonnes, which is 8.2% higher than the levelin 2005 (74.6 million tonnes). According to preliminary data for 2006, gasproduction has reached 13.625 billion cubic meters, which is a 4.2% increaseover 2005 (13.078 billion cubic meters). In 2006 the Company drilled 411 new wells, which is 26.1% more than in 2005.Workover operations resulted in an additional 10.9 million tonnes of oilproduction, versus 8.3 million tonnes in 2005. The operating well stock willcomprise 21,239 units as of January 1, 2007, which is an increase of 4,020units, mainly due to the acquisition of Udmurtneft. It is expected that the level of exploratory drilling will reach 62,700 meters(57,100 meters in 2005). 2D seismic survey work amounting to 3,900 linearkilometers will have been carried out (1,200 linear kilometers in 2005), and 3Dseismic survey work will reach 1,200 square kilometers (1,300 square kilometersin 2005). Geological exploration in 2006 led to growth in reserves by 117,6million tonnes. Refining of Rosneft oil at Russian plants is expected to reach 24.025 milliontonnes of oil in 2006 (including 126,000 tonnes of third-party oil), which is8.1% higher than in 2005 (22.2 million tonnes). At the Company's own refineries,10.808 million tonnes of oil will have been refined, an increase of 3.0% over2005 (10.493 million tonnes). The total volume of oil products produced isexpected to reach 22.8 million tonnes. For further information please contact: TMK IR Department:Natalia DokuchaevaTel: +7 495 775 7660Email: ir@tmk-group.com Gavin Anderson & Company:Dick Millard/Michael TurnerTel: +44 207 554 1400Email: tmk@gavinanderson.co.uk OJSC Rosneft Information DivisionNikolay ManvelovTel: +7 495 221 3107Email: n_manvelov@rosneft.ru This information is provided by RNS The company news service from the London Stock Exchange