In 2003, three of Russia's leading investment, financial, and
industrial groups - Alfa Group, Access Industries, and Renova -
formed the AAR Consortium. AAR's key asset is its 50 percent share
in TNK-BP. The Consortium represents the interests of the Russian
shareholders in the oil company.
One of the largest oil companies in Russia, TNK-BP was created
through the merger of the oil and gas assets of BP in Russia and
those of the AAR Consortium. The $15 billion merger with British
Petroleum that established the company is the largest corporate
transaction to date involving a Russian and foreign company.
Being the third largest company in Russia, TNK-BP accounts for
approximately 16% of Russia's oil production (including its
half-ownership of Slavneft). By volume of oil produced, TNK-BP is
one of the ten largest private oil companies in the world. The
company produced 1.742 million barrels of oil per day, or 87
million tons annually. The independent audit conducted by DeGolyer
and MacNaughton confirmed that as of 31 December 2010 TNK-BP's
Total Proved Reserves amounted to 13.1 billion barrels of oil
equivalent, applying PRMS (formerly SPE) criteria. Proved Reserves
constitute a Total Proved PRMS reserve replacement ratio of 322%.
The company's upstream operations are located in Western and
Eastern Siberia and in the Volga-Urals region. TNK-BP owns and
operates five refineries in Russia and Ukraine, and retails through
a network of about 1.500 filling stations.