Jonathan Kollek, TNK-BP vice-president for sales and logistics, said the Russian-British joint venture planned to supply oil via Transneft's pipeline network to Kazakhstan's Atasu-Alashankou pipeline running to China.
Kollek said oil supplies to China by rail had not been economically viable until the company put into operation an oil terminal in the Novosibirsk Region in western Siberia, and said that the terminal could be launched in the first quarter of 2008.
The terminal will allow TNK-BP to export 100,000 metric tons (733,000 barrels) a month of high-quality oil to China, Kazakhstan and the Black Sea coast, via the Caspian oil pipeline or through the Russian Black Sea port of Novorossiisk, Kollek said.
The company also plans to cut oil exports by 9.3% year-on-year by the end of 2007 to 36.7 million metric tons (737,000 bbls/d) while exports of refined products are set to end the year 4.8% higher, at 15.28 million metric tons.
Anthony Considine, TNK-BP vice-president for refining, said the company's decision was due to incentives offered by the Russian government to oil companies to increase sales of petroleum products.
"The state is stimulating the production of added-value products," Considine said.
Considine also said TNK-BP planned to invest $1-1.5 billion in modernization of its refineries in 2008-2013.
