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. Last Updated: 07/27/2016

TNK-BP Opens a $1.3Bln Tender for Workover Rigs

TNK-BP on Monday opened a major tender to acquire workover rigs and said total orders could reach $1.3 billion.

The tender for up to 300 of the rigs, the first long-term rig tender announced by a Russian firm, would have contract terms of up to five years, the company said in a statement.

Workover rigs are portable and used for working over a well.

"The workover rigs will give us the opportunity to repair our existing rigs and help us raise quality and improve environmental standards," company spokesman Alexander Shadrin said.

TNK-BP in July called a $2 billion tender for up to 60 drilling rigs. The results of that tender will be known in October.

TNK-BP is trying hard to maintain its output at its mostly mature fields in west Siberia and is relying on developing greenfield projects in east Siberia to increase output in 2008.

The workover rigs will be used across Russia.

Eighteen prequalified bidding companies have been agreed upon, all but one of which are Russian, the company said. Contractors will be notified in November, and work will begin in January.

Most workover rigs in Russia are commissioned on annual contracts.

TNK-BP will pay interim dividends for the first half of 2007, a company spokesman said Monday.

He declined to disclose details, saying the amount would be made public around Aug. 29. The extraordinary general meeting to approve the dividend will take place Sept. 28, but the record date of Aug. 14 has already passed. Last year, TNK-BP cut its dividend by 9 percent, paying 7.32 rubles (3 cents) per share, including an interim dividend, for the first nine months, down from 8.06 rubles in 2005.

The total payout amounted to around $4.6 billion, still one of the most generous in the country's oil industry.