TNK-BP Investor presentation March 2011. 2 2 Important notice These materials include statements that are, or may be deemed to be, ‘‘forward-looking statements’’.

TNK-BPInvestor presentationMarch 2011

2

2

Important noticeThese materials include statements that are, or may be deemed to be, ‘‘forward-looking statements’’. These forward-looking statements can be identified by the use of forward-looking terminology, including, but not limited to, the terms ‘‘believes’’, ‘‘estimates’’, ‘‘anticipates’’, ‘‘expects’’, ‘‘intends’’, ‘‘may’’, ‘‘target’’, ‘‘will’’, or ‘‘should’’ or, in each case, their negative or other variations or comparable terminology or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They include, but are not limited to, statements regarding the intentions, beliefs and statements of current expectations of TNK-BP International Limited and its subsidiaries (“TNK-BP”) concerning, amongst other things, TNK-BP’s results of operations, financial condition, liquidity, prospects, growth, potential acquisitions, strategies and as to the industries and locations in which TNK-BP operates. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur. Forward-looking statements are not guarantees of future performance and the actual results of TNK-BP's operations, financial condition and liquidity and the development of the country, regions, political environment and industries in which TNK-BP operates may differ materially from those described in, or suggested by, the forward-looking statements contained in these materials. TNK-BP does not intend, and does not assume any obligation, to update or revise any forward-looking statements or information set out in these materials, whether as a result of new information, future events or otherwise. TNK-BP does not make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved.

These materials contain reserves data for TNK-BP which has been extracted without material adjustment from the Reserves Reports prepared for TNK-BP by independent petroleum engineers using three different methods. These methods include the U.S. Securities and Exchange Commission ("SEC") standards, the U.S. Society of Petroleum Engineers, Inc. ("SPE") standards and a variation of the SEC standards pursuant to which reserves are calculated through the economic life of the fields ("SEC-LOF"). The SEC-LOF standards differ in certain material respects from the SEC standards and the SPE standards. Unless otherwise indicated reserves data contained in these materials are based on the SEC-LOF standards as in effect on the date of the Reserve Report from which such data has been extracted. The SEC has adopted significant revisions to the SEC standards on oil and gas reporting, which became effective on 1 January 2010. The main revisions that may have an impact on TNK-BP’s reserve quantities relate to the use of a 12-month average price to estimate reserves rather than the price on the last day of the year and to the use of new technology and the enlargement of the areas for which reserves may be determined.

These materials do not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire any securities in any jurisdiction or an inducement to enter into investment activity. No part of these materials, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever.

These materials may not be forwarded, distributed or reproduced in whole or in part, in any manner whatsoever, without TNK-BP’s express consent.

3

3

TNK-BP at a glance

East Siberia

West Siberia

Yamal(early development)

Orenburg

Uvat

Among largest private oil & gas producers globally

• Ranking in world’s top 10 private oil and gas producers

• Russia’s top 3 vertically integrated oil company

• Producing 1,734 mboed, 3.4% organic growth

Fully integrated business

• Russia’s top 3 refiner

• Five and a half refineries (including one in Ukraine), total capacity 772 mbpd

• Refining cover of 43%

• Extensive retail network with over 1,400 retail sites in Russia, Ukraine and Belarus

Ample reserve base

• 8.6 bn boe of proved reserves (SEC-LOF), 30+ bn boe of PRMS 3P reserves

• Reserve life of 14 years (SEC-LOF) and 50 years of PRMS 3P reserves

• Industry-leading F&D costs and exploration success rate

Strong financial profile

• Investment grade credit ratings

• Strong credit metrics

• Robust financial performance

Reserves and refining capacity as at end 2009, production, refining and retail data for 9M10

Refineries

Greenfield projects

YANOS refinery, 50/50 ownedwith Gazprom Neft

Brownfield projects

Legend:

Exciting growth opportunities

• New generation of greenfield projects

• Growing gas business

• International expansion

4

0

3

6

9

12

15

Lukoil Rosneft Exxon BP TNK-BP Petro-bras

ConocoPhilips

Chevron Total RoyalDutchShell

Re

se

rve

life

, ye

ars

0.0

0.5

1.0

1.5

2.0

2.5

BP Exxon Rosneft Petro-bras

Lukoil Chevron RoyalDutchShell

TNK-BP ConocoPhilips

Total

Liq

uid

s p

rod

uc

tio

n, m

mb

pd

-3%

-1%

1%

3%

5%

7%

9%

Rosneft TNK-BP Tatneft GazpromNeft

Surgutneftegaz

Lukoil

Da

ily li

qu

ids

pro

du

cti

on

gro

wth

4

Strong competitive position

World class reserve replacement and F&D costs

Among the world’s largest oil producers*

Strong production growth

Source: UBS Global Integrated Oil & Gas Analyser, 2009* Excluding fully state-owned companies

Source: CDU TEK, TNK-BP data, daily liquids production without JVs, 9M10 v 9M09Source: company reports, TNK-BP data, Reserve Replacement Ratio (RRR) based on SEC-LOF reserve data

TNK-BP

Rosneft

Gazprom Neft

BPChevron

Conoco Phillips

Exxon MobilR&D Shell

0%

20%

40%

60%

80%

100%

120%

140%

160%

0 5 10 15 20 25 30 35 40 45 50

3Y average F&D costs (2007-2009), $/boe

3Y a

vera

ge

org

anic

RR

R (

2007

-200

9)

Ample reserve base – world class reserve life globally

3.0%

Source: UBS Global Integrated Oil & Gas Analyser, 2009. Reserve life based on 2008 disclosure and SEC methodology except Lukoil which is based on PRMS methodology

5

Strategy for growth

World-class corporate governance

Monetize our gas portfolio

Enhance marginsConvert resources

to reserves to production

A LEADER IN THE RUSSIAN OIL & GAS INDUSTRY

International portfolio

Technology

People

• Grow production to 100 mln tonnes by 2015

• 20-25% production from greenfields by 2015

• Yamal: up to 750 mboed by 2020

• 42% 50% refining cover

• Retail expansion

• 30 bcma gas production by 2020

• “20/20/20”:

– 20% of total production and EBITDA by 2020

• HSE

• Ethics

• Process fitness

6

9M10 operational & financial highlights

• EBITDA at $7.2 bn, up 9% on 9M09

• Net Income at $3.9 bn, up 5% on 9M09

• Operating cash flow at $6.9 bn, up 50% on 9M09

6

• Days Away From Work Cases frequency down 4% in 9M10 v 9M09

• Zero major vehicle accidents in 9M10• Spills frequency down 15% in 9M10 v 9M09

• 3.4% production growth (liquids and gas, excl. Slavneft) in 9M10 v 9M09

• A long-term transportation agreement signed with Gazprom for Rospan gas in 3Q10

• New discoveries of c. 300 mmboe in Yamal, Uvat and Orenburg during 9M10

• Robust 3Q10 and 9M10 refining margins of over $12/bbl

• Operational availability for 2010 forecast at 97% – historical highest

• All-time high average daily throughput in 9M10 at 715 mbpd

• Strong sales growth in retail of 3% in 9M10 v 9M09

• 8 licenses acquired through auctions and M&A in Orenburg in 9M10, adding >250 mmboe, including 3 licenses in 3Q10

• Agreement reached with BP to acquire BP’s upstream and pipeline assets in Vietnam and Venezuela for $1.8 bn

• A memorandum of understanding signed with PetroVietnam on oil and gas cooperation

• A memorandum of understanding signed to develop tight sand gas in Eastern Ukraine on a production-sharing basis

9M10 FinancialsHSE

PortfolioUpstream

Downstream International activity

7

Acquisitions in Venezuela and Vietnam

VenezuelaExtra Heavy Oil

Brownfield Opportunity

Stakes in three Empresa Mixtas / JVs with state-

owned PDVSA: PetroMonagas, PetroPerija

and Boquerón

VietnamIntegrated Gas Project –

Offshore Gas Fields, Pipeline & Power Plant

Stakes across gas value chain: offshore gas assets

(Block 06-01), Nam Con Son gas pipeline and Phu

My 3 power plant

• TNK-BP and BP p.l.c. have reached an agreement for TNK-BP to acquire BP's upstream and pipeline assets in Vietnam and Venezuela for an overall consideration of $1.8 billion

• The acquisitions will be financed entirely from the company’s available resources

• Subject to pre-emption rights and the fulfillment of other agreed pre-closing conditions, the companies expect the transaction to be completed in the first half of 2011

• Altogether, the acquisitions of the assets in Venezuela and Vietnam will bring TNK-BP net proved and probable (2P) reserves of c. 290 million barrels of oil equivalent on a working interest basis, or c. 260 million barrels of oil equivalent on an entitlement basis (following taxes paid according to Production Sharing Agreement)

• The assets would add c. 40 mboed to TNK-BP production on an entitlement basis

Block 06-01

Nam ConSon Pipeline

Phu My 3Power Plant

BP 35.0% 32.7% 33.3%ONGC 45.0% – –PetroVietnam 20.0% 51.0% –ConocoPhillips – 16.3% –Sembcorp – – 33.3%Kyushu Electric Power / Sojitz – – 33.3%

PetroMonagas PetroPerija Boquerón

BP 16.7% 40.0% 26.7%PDVSA 83.3% 60.0% 60.0%OMV – – 13.3%

8

Taxation regime: recent developments

Positive changes in taxation regime – already introduced

• Export duty suspended for 22 East Siberian fields (incl. Verkhnechonskoye, Suzunskoye, Tagulskoye) during 1H10, a reduced per barrel rate of 0.45 * (Urals price – $50) applies from 1 July 2010

• MET holidays introduced to encourage development of new fields in East Siberia• Accelerated VAT refund effective from 2010 – positive for working capital• Non taxable threshold for MET up from $9 to $15 per barrel from 1 January 2009• Corporate income tax rate reduced from 24% to 20% effective 1 January 2009• Export duty calculation methodology changed effective 1 December 2008, reducing duty lag effect

Changes in taxation regime – under discussion

• Ministry of energy proposes the “60-66” taxation system providing for lowering of the crude export duty by c. 7% and levelling crude export duties for dark and light oil products at 66% of the crude export duty in 2011

• MET holidays for 10 years to encourage development of new fields in YaNAO – under discussion by Russian Government bodies

• MET benefits for small oil fields with production of up to 5 mln tonnes

Negative changes in taxation regime – already introduced

• Government Decree on crude MET increase by 6.5% in 2012, by 5.4% in 2013, and on gas MET increase by 61% in 2011 with further inflation indexation

• Government Decree on gradual duties levelling for light and dark oil products starting with 1 February 2011 at 67% of crude export duty for dark oil products (instead of 70%) and at 46.7% of crude export duty for dark oil products (instead of 40%) to reach 60% by 1 January 2013

9

0

5

10

15

20

25

30

35

Proved 2P 3P

bn boe

Reserve life19 years

Reserve life50 years

Reserve life32 years

ProvedProved Proved

Probable Probable

Possible

9

Reserves and productionResource base (PRMS)

Ample reserve base

• Maintaining a world class reserve base:

– SEC-LOF: 8.6 bn boe proved reserves, reserve life of 14 years

– PRMS: 11.7 bn boe proved reserves, reserve life of 19 years

• An established track record of successful reserve replacement:

– SEC-LOF: 3-year average RRR of 146%

– PRMS: 3-year average RRR of 258%

• Industry leading exploration success rate and F&D costs:

– Exploration success rate: 3-year average of 73%

– F&D costs: 3-year average of $3.6/boe, with $2.2/boe in 2009

Sustainable production growth• Hydrocarbon production of 1,734 mboed in 9M10, up

3.4% on 9M09• Liquids production of 1,525 mbpd in 9M10, up 3.0% on

9M09• Impressive liquids production growth in Orenburg, up

8.8% in 9M10 v 9M09• Increasing share of greenfield barrels in total liquids

production: 10.8% in 9M10, more than doubled on 9M09• Production in Western Siberia down 3.5% in 9M10 v

9M09

Hydrocarbon production

Reserves as at end 2009, 3-year averages for 2007-2009. Reserves and production data exclude Slavneft

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10

Greenfields Orenburg West Siberia

mboed

10

10

Samotlor

Other West Siberia fields

3P Reserves: 4.9 bn boe

9M10 liquids production:266 mbpd

Moscow

Orenburg

Nizhnevartovsk

Nyagan

Novosibirsk

Brownfield asset base

Orenburg fields

3P Reserves: 2.4 bn boe

9M10 liquids production:411 mbpd

Samotlor field

3P Reserves: 7.6 bn boe

9M10 liquids production: 565 mbpd

Nyagan fields

3P Reserves: 4.7 bn boe

9M10 liquids production: 105 mbpd

• Brownfield assets located in West Siberia and Orenburg• 3P reserves of 19.6 bn boe• Currently deliver 89% of total liquids output

West Siberia• Production maintained broadly flat through application of

select new technology and processes• +90% water cut

Samotlor• Giant field, 5th largest ever discovered• More than 40 years in production• Delivers 37% of TNK-BP’s total liquids production• Will remain a reliable producer going forward

Orenburg• 60-70 years in production• Delivers 27% of TNK-BP’s total liquids production• Outstanding liquids production growth

– 6.6% 2009 v 2008– 8.8% in 9M10 v 9M09

• Achieved primarily through accessing satellite formations and building on infrastructural synergies

Reserves as at end 2009, Nyagan reserves exclude Kamennoye

11

11

Uvat

Rospan

RusskoyeTagulskoye

Suzunskoye

Messoyakha*

Verkhnechonskoye

Greenfields: building for the future

Verkhnechonskoye3P Reserves: 1.9 bn boe

Start-up: 2008

9M10 liquids production:51 mbpd

Uvat 3P Reserves: 1.1 bn boe

Start-up: 2009

9M10 liquids production:78 mbpd

Yamal projects3P Reserves: 3.1 bn boe

Potential start-up: 2015-2016

*Messoyakha (3P + 3C resources – 3.2 bn boe) is owned by a 50/50 JV between TNK-BP and Gazprom Neft

Kamennoye

Kamennoye3P Reserves: 2.4 bn boe

Start-up: 2009 (north)

9M10 liquids production:36 mbpd (north)

Rospan3P Reserves: 2.7 bn boe (liquids + gas)

Potential plateau: 16 bcma

9M10 gas production: 1.9 bcm (43 mboed)

9M10 condensate production: 13 mbpd

• Currently approx. 11% of total liquids production, potential to reach 20-25% by 2015

Producing greenfields

• Major project delivery on time and on budget

• Select application of technology – safe for people and environment

Projects in early development

• Capable of delivering up to approx. 750 mboed by 2020

Projects at phase of commercial production

Greenfield projects under development

Gas project

Legend:

Reserves as at end 2009, Kamennoye reserves are for the whole field

Developing new production centers of international significance

12

Producing greenfields: Verkhnechonskoye

ESPO – a new strategic export route for Russian crude

• An alternative supply for Asia Pacific and US markets

• ESPO blend gains ground in the international market, trades at a premium to Urals

• Single ESPO tariff set by Transneft at the end of 2009

• Zero export duty applied to Verkhnechonskoye exports during 1H 2010, a reduced per barrel rate of 0.45 * (Urals price – $50) applies from 1 July 2010

• MET holidays for first 25 mln tonnes if produced until 2017

Project overview

• Largest oil field in East Siberia discovered in 1978

• Developed in partnership with Rosneft

2010 milestones

• Current 2010 production forecast at c. 19.5 mm bbl, up 8% on plan

• Next phase of the full field development plan supported by the Board of Directors, including 90 wells, related infrastructure, power station

• 5th drilling rig deployed

• 23+ mm bbl p.a. oil treatment unit commissioned

• 26 MW power station commissioned

• Surface pressure maintenance facilities installed

3P reserves: 1.9 bn boe 9M10 production: 51 mbpd Peak production: 150 mbpd Peak year: 2017

Verkhnechonskoye

Source: Reuters

13

Producing greenfields: Uvat

Project overview

• 21 fields in 15 license plots in the south of Tyumen region, West Siberia, some 700 km away from Tyumen city

• Eastern Hub: production centre launched in 2009 (Urnenskoye and Ust-Tegusskoye fields)

• Central Uvat: pilot production commenced at Tyamkinskoye field in March 2010, ahead of plan

• Development partly financed with regional government grants

2010 milestones

• Current 2010 production forecast at c. 29.5 mm bbl, up 14% on plan

• Gas Turbine Power Plant (GTPP) 1st phase (22 MW) – construction completed

• Continue with Tyamkinskoye pilot targeting full field development in 2011

• Uvat infrastructure:

– Road construction under way for all year access

– 41 mm bbl p.a. Central Processing Facility commissioned

3P reserves: 1.1 bn boe 9M10 production: 78 mbpd Peak production: 200 mbpd Peak year: 2017

Western Uvat

Central Uvat

Eastern Uvat

Kalchinsky fieldTyamkinsky field

Protozanovsky field

Urnenskoye field

Ust-Tegusskoye field

14

Targeted application of technology

Brownfields• Decline reduction• Water shut off• ESP mean time between failures• Energy efficiency• Ineffective well stock reduction• Low cost drilling• Effective gas utilization

Greenfields• Heavy oil extraction• Complex well designs• Completions• Water management• Seismic and modelling• Gas utilization• Field automation

14

Technology challenges

Technology examples

• Significant energy savings

• Increased oil recovery factor: in some cases from a production ratio of only 1-2% oil and 98-99% water to a ratio of almost 20% oil and 80% water

Dual CompletionsWater Shut-Off• Opex/Capex reduction• Accelerates oil production• Involves additional oil

reserves into production• 100% independent

production from 2 formations; 1st in Russia

15

15

Yamal – a major new production area for TNK-BP and Russia

• One of the few remaining undeveloped hydrocarbon provinces in Russia and the world

• Mineral extraction tax holidays and a reduced export duty currently apply for certain fields

• Yamal integrated program being developed by the government

• A major potential source of TNK-BP’s future growth but significant challenges to overcome:

– Lack of transportation infrastructure

– Current Russian oil & gas taxation does not stimulate new developments

– Technical challenge of developing the reserves: quality of oil (Russkoye) and complex reservoirs (Tagul, Messoyakha)

Project3P + 3C

resources, bn boe

Potential year of launch

Field summary

Suzun 0.3 2015 Best explored field with well-understood geology and high quality light oil

Tagul 1.9 2016 Complicated field with numerous reservoirs and medium-quality crude

Russkoye 2.2 2015 Large but technically challenging field (highly viscous oil, gas caps)

Russko-Rechenskoye

0.1 2016 Small field adjacent to Tagul on the west

Messoyakha (50%)

1.6 2017 Potentially gigantic field, technically challenging (multiple layers, heavy oil)

16

© THK-BP presentation name

TNK-BP gas portfolio

Ukraine

Nyagan Rospan

Orenburg Novosibirsk

Yamal

Verkhnechonsk

Nizhnevartovsk

• Associated gas utilization at Krasnoleninskoye field

• East-Urengoyskoye and Novo-Urengoyskoye gas and condensate fields

• 506 bcm reserves (A+B+C1)• 2009 production 2.4 bcma,

plateau up to 16 bcma in 2017+

• Associated gas utilization at Suzunskoye, Tagulskoye, Russkoye, Russko-Rechenskoye and Messoyakha fields

• Gas utilization at Verkhnechonskoye field

• 8 bcma of associated gas production• Processing JV with Sibur at Belozerny and Nizhnevartovsky

GPP (current capacity 9.4 bcma, 10.1 bcma after extension in 2012)

• 25% in Nizhnevartovsk GRES (1,600 MW)• Gas caps project

• Associated gas utilization at Verkh-Tarskoye field

• 2009 production 1.5 bcma (natural gas and APG) with a potential to reach 3-4 bcma

• Zaikinskiy GPP (capacity 1.1 bcma, under enhancement to 2.2+ bcma)

• Assessment of unconventional gas potential

Associated Gas

Natural Gas

Gas Processing Plant

• Associated Gas 9.7 bcm

• Natural Gas 2.4 bcm

Gas Sales in 2009

17

Rospan – a gas growth opportunity

Gazprom, ENI, ENEL

Defined Greater Achimov Horizon

• Largest TNK-BP’s natural gas asset, located in Urengoy region

• 3P gas reserves: 1.4 bn boe; A+B+C1: 506 bcm

• Capable of producing 16 bcma of gas and up to 5 mln tonnes of condensate a year starting from 2017

• Existing gas production 1.9 bcm in 9M10 (up 12% v 9M09), 2.4 bcm in FY09

• Long-term gas transportation agreement signed with Gazprom in September 2010 (up to 13.2 bcma in 2016)

• Work in progress on long-term sales agreements

• A full field development plan is being worked on

• Total estimated capex c. $6 bn

TNK-BP(Rospan)

Gazprom(Urengoygazprom) (Arcticgas)

Major gas pipelineRailway

Compressor station

Novy

Urengoi

Urengoyskaya - 3

Urengoyskaya - 1

Urengoyskaya - 2

Novy

Urengoi

Korotchaevo

Urengoyskaya-3

Urengoyskaya-1

- 1

Urengoyskaya-2

18

Increasing APG utilization

APG in TNK-BP, 2009

• Utilization level – 84.4%

• In production – total 143 fields

• Production of APG – 12.5 bcma

$1.8 bn investments planned to significantly increase TNK-BP’s APG utilization level in 2010-2013:

Orenburg

• Integrated project

• Expansion of Zaikinsky GPP

Nizhnevarovsk

• Associated gas processing JV with Sibur

• NVGRES

Nyagan

• Construction of a power generation unit

• Construction of a gas turbine power plant at Kamennoye field (completion in 2010)

Uvat

• Construction of a gas turbine power plant

Verkchnechonskoye

• Considering different options including gas reinjection for storage and future use

Yamal

• Considering various projects including power generation, gas reinjection, supply to the gas pipe

APG utilization, %

75.5 77.6 79.8

68.4

79.684.4

0

10

20

30

40

50

60

70

80

90

2004 2005 2006 2007 2008 2009

TNK-BP Lukoil Rosneft

19

• TNK-BP is a major consumer of power and gas producer – demands 13.4 bln kWph (Upstream – 12.1 bln kWph, Downstream – 1.3 bln kWph)

• Cost of power is a significant part of oil production costs and continues to grow

• TNK-BP plans to invest over $700 mln in development of power generation projects in 2010-2012

• The company considers construction of power plants (captive & commercial) in the regions of its operations, including Nizhnevartovsk, Irkutsk, Orenburg, Ryazan and Yamal

Gas to power to power savings

Nizhnevartovsk GRES

TNK-BP – Sibur JV(Yugragazpererabotka)

20

20

Downstream overview

ТНКRNPK

St. Petersburg

Saratov

UkraineKiev

LINIK

Mozyr

Rostov

Minsk

Donetsk

Moscow

Belarus

Dnepropetrovsk

ТНК

BP

ТНК

ТНКТНК

BPТНК

Russia

BP

ТНКKrasnodar

YANOS

ТНК ТНК

ТНК

ТНК

ТНК

Sustainable business model:

• Competitive refinery• Best retail site networks and

other sales channels in the East of Ukraine

ТНК

ТНК

Chelyabinsk

Ekaterinburg

Ufa

Kazan

N.Novgorod

Samara

Priority development:

• Major competitive refinery – Ryazan

• Best retail networks• Efficient logistics

Saratov Refinery:

Quality projects and “quick win” commercial projects

YANOS:

Important factor for enhanced presence on St. Petersburg market

Refinery Depot AirportBP

ТНК Retail network

• Third largest refiner in Russia

• Four refineries in Russia plus 50% in Yanos refinery, LINIK refinery in Ukraine

• Refineries strategically positioned to serve key markets in Russia and Ukraine

• A retail chain of more than 1,400 sites in Russia, Ukraine and Belarus

• Strategy to maximize integrated value of the business, building on coordinated growth of all business units

BP

ТНК

21

18.3

8.1

12.6

6.7

3.3 3.66.0

2.1 3.20

5

10

15

20

2008 2009 9M10

TNK-BP

North West Europe

Europe Mediterranean

$/bbl

21

• Refining throughput of 715 mbpd in 9M10 (all-time high)

• Robust refining margins benefiting from fiscal regime – over $12/bbl in 3Q10 and 9M10

• Operational availability for 2010 forecast at 97% – historical highest (v 91% in 2009 taking into account refinery units turnaround cycle)

• Refining cover of 43% in 9M 2010*

Stable throughput and high operating availability

Refining• 3Q10 throughput exceeding the plan by over 2.3 mm bbl• Strong refining performance generated additional $103 mln

EBITDA in 9M10 from units mode optimization, high operational availability, logistics and cost optimization

• Continued modernization of refining portfolio to produce fuel to meet European quality standards

Refining margins outperform other regions

Source: BP trading conditions update, Company data

447 467 435 474

127 135 137141

127 95 103100

92%94%

91%

97%

-

200

400

600

800

1,000

60%

70%

80%

90%

100%

2007 2008 2009 9M10

mbpd

Russia own Yanos LiNIK Operating availability

22

22

Marketing• New range of products under TNK and BP brands

• B2B business expansion: jet fuels, bitumen, lubricants and marine fuel

• Strengthening position in the premium market through construction of new BP outlets and focused rebranding of well-located retail sites into BP brand

• TNK-BP actively promotes exchange trade of oil products domestically, share of light product sales made through the exchange approaching 16% in 3Q10

• New branded fuel, PULSAR, launched in 2009 and is being rolled out to an increasing number of regions

• Work in progress on further regional retail expansion

Brand# of sites at 30 Sept

10

Company owned and operated sites

BP 77 TNK 810

Jobber sites 547

TNK-BP retail network in Russia, Ukraine and Belarus

Throughput per site

5348 46

11 12 1211 11 10

0

10

20

30

40

50

60

2008 2009 9M10

Ave

rag

e th

rou

gh

pu

t per

sit

e, k

lpd

Average throughput per BP site

Average throughput per TNK site

Indicative throughput, Europe

23

23

Outlook

• Focus on HSE to maintain improvement momentum

• Targeted production growth of approximately 3% in 2010 and 1-3% in 2011

• Further development of VCNG and Uvat

• Yamal – plans of regional infrastructure development

• Rospan – full field development plan being prepared

• Cost focus – particularly energy efficiency

• Building capability for refinery upgrades

• Revisit current Ukraine business model

• Progressing Venezuela and Vietnam deal to successful completion in 1H11

• Selective M&A opportunities – small retail / gas

Operations

Portfolio

Additional information

25

25

TNK-BP corporate structure1

Upstream Refining Marketing

95%

c.50%

TNK-BP Ltd (BVI)

63%RUSIA

Petroleum

Slavneft

(JV withGazprom Neft) TNK-BP Finance

S.A. (Luxembourg)

100%

Lisichansk Refinery(Ukraine)

c.95%

100%

TNK-BP Holding

TNK-BP Management

100%

TNK-BP Commerce (Ukraine)

TNK-BP International Ltd (BVI)

100%

TNK Industrial Holdings Ltd (BVI)

100%

50% 50%Alfa, Access/Renova BP

Note: Showing principal holding and operating companies

26

26

Board of Directors

Viktor VekselbergChairman, Renova Group

representatives of AAR

representatives of BP

independent directors

Brian GilvaryDeputy Group CFO, BP

David PeattieHead of BP Russia

Tony HaywardFormer Chief Executive, BP

Len Blavatnik Chairman, Access Industries

Alex KnasterChairman of Pamplona Capital

Management, Alfa Group

Mikhail Fridman

Chairman

Lord Robertsonof Port Ellen

Deputy Chairman

Gerhard SchroederIndependent Director

Alexander ShokhinIndependent Director

James LengIndependent Director

27

27

Management structure

members of the Management Board

CFO

J. Muir

EVP Gas and Power

M. Slobodin

EVP Upstream

S. Brezitsky

EVP Downstream /

Executive Director

D. Baudrand

EVPTechnology

F. Sommer

EVPSupport Services

A. Tyomkin

EVPStrategy

& BusinessDevelopment

S. Miroshnik

EVP Legal

I. Maydannik

CEOInterim

M. Fridman

Executive Director

G. Khan

Deputy CEO

M. Barskiy*

* M. Barskiy planned to become CEO in 2011

Advisor of the CEO

V. Vekselberg

СОО

B. Schrader

28

• Minority stakes in three producing Empresa Mixtas (JVs):• State-owned PDVSA – major partner (except for Boqueron where OMV

also has 13.3% stake)• Current net crude production c. 25 mboed (sustainable in the long term)• Net reserves of 207 mmboe on a working interest basis• PetroMonagas is the largest asset acquired

Venezuelan assets PetroMonagas, PetroPerija & Boqueron

VENEZUELA

COLOMBIA

IslaMargarita

BRAZIL

GUYANA

TRINIDAD

Caribbean Sea

CARACAS

CURAÇAO

OCO HE

LAKEMARACAIBOFIELDS

ntilles

ARUBA

BallenaBONAIRE

BARBADOS

MARTINIQUE

NETHERLANDS- ANTILLES

60°W

60°W

66°W

66°W

72°W

72°W

12

°N

12

°N

6°N

6°N

0 200 400km Source: Wood Mackenzie

Boquerón

PetroPerija

Petromonagas

Junin 6

(NPC)

Ayacucho 2

(TNK-BP)

Petromonagas

(BP)

Brownfield extra heavy oil opportunityOverview

PetroMonagas (16.7%)• Located in best portion of Faja Heavy Oil Belt (8.5 deg API oil)• On production for 10 years• Excellent reservoir quality and thick reservoir section• Integrated project, extra-heavy crude converted into lighter export-bound

synthetic crude and transported by pipeline to upgrader on the coast• Current net production c. 19 mboed, net 2P reserves of 191 mmboe on a

working interest basis

PetroPerija (40.0%)• 5 separate fields located on western side of Lake Maracaibo• Three fields in production (Alpuf, Alturitas and San Jose), two fields non-

producing (Machiques, San Julian)

Boqueron (26.7%)

• Mature field, production peaked in 2001

29

• High quality, low risk vertically integrated gas and power value chain• Strategic asset for Vietnam, largest in-country gas producer, > 30%

of Vietnam electricity generation (5-6% of Vietnam’s total power demand)

• State-owned PetroVietnam is an anchor investor in all assets as well as in all adjacent blocks in the region

• Strong protection against political risks• Presence across entire value chain ensures transparency and

strong governance

Vietnamese assetsBlock 06.1, Nam Con Son Pipeline and Phu My 3 Power Plant

Integrated gas project Overview

Block 06.1 – Upstream gas production (35.0%)• Located in the Nam Con Basin 370km off the Southern coast of

Vietnam− Contains two gas condensate fields Lan Tay (in production) and

Lan Do (in development)− Gas from Lan Tay used in power generation and fertiliser

production at Phu My complex • The Vietnamese assets would add of 30 mboed gross production

(on a working interest basis), or 15 thousand barrels per day on a net entitlement basis

Nam Con Son Pipeline & Terminal (NSCP) – Midstream (32.7%)• NCSP system includes pipeline (399 km), onshore Dinh Co Gas

Processing Terminal and metering station at Phu My• Key hydrocarbon transportation and processing infrastructure asset

contracted to 650 mmscfd / 6.7 bcma of gas• Only gas pipeline in Nam Con Son basin, links upstream fields to

Phu My Power complex

Phu My 3 – Power Plant (33.3%)

• Generation capacity of 750MW

30

Orenburg – an expanding business

Оренбург

Бузулук

Загорская УКПНГ ООО«Терминал»

Зайкинский ГПП

L ~ 93,5км

L ~ 140km

Г/д Оренбург-Самара

Вахитовская ГКС

Д-Сыртовская ГКС

L ~

20км

L ~

30km

Ж/д «Терминал»

Загорская ГКС

Ж/д

CHCH

. /

:

CH

. /

:

CH

:

CH

Оренбуркский ГПЗ ОАО«Газпром»

Бобровка

Покровская УКПГ

Отрадненский ГПП

Нефтегорский ГПП

Ольховская ГКС

Гаршинская ГКС

Загорская ГТЭС

С-Никольская ГКС

Савельевская ГТЭС

Родниковская ГТЭС

L ~

90km

Liquids production• 2010 production forecast – approx. 20 mln

tonnes, up 19% on 2006• Potential to increase production by 25% up to

25 mln tonnes by 2015

Gas production• 2010 production forecast – 2 bcma, generating

approx. $100 mln in revenues• Potential to increase production up to 5 bcma

by 2015

Gas processing and utilisation• Two major new gas processing facilities now

under construction with capacity of 1.7 bcma and the technology to strip liquids from wet gas

• On track to eliminate excess flaring from 2013

Gas monetisation options• Advantaged access to the 16 bcma Samara

region gas market• Different alternative gas monetisation options

are also considered, including electricity generation

TNK-BP’s Orenburg assets

31

Across TNK-BP

• Significant energy savings

• Increased oil recovery factor

TNK-BP technology examples

Dual Completions Water Shut-Off UVAT / Orenburg

• Opex/Capex reduction• Accelerates oil production• Involves additional oil

reserves into production• 100% independent

production from 2 formations; 1st in Russia

Fiber Frac Kamennoye, Samotlor

• Improvement in Frac success rate

• Formation damage decrease

• Lower water cuts after frac (incremental oil rate increase)

Conventional Frac

FiberFRAC*

Water ZoneWater ZoneWater Zone

J -FRAC

А

В

С

Multi FRAC

Conventional single FRAC

Horizontal well with Multi Frac

• Access to additional resources

• Significant incremental oil rate increase comparing to single Frac technique

Nyagan, Talinskoe, Em-Yogovskiy, Samotlor

32

Production from sidetrack wells Rotaflex

TubingCentralizer

Rods

Rod pump

Orenburg /Samotlor• 25-40% increase of

oil production

• Energy savings of15 to 20%

• The Rotaflex wasapplied for the firsttime in the world ina sidetrack branch

Rotaflex

TubingCentralizer

Rods

Rod pump

Orenburg /Samotlor• 25-40% increase of

oil production

• Energy savings of15 to 20%

• The Rotaflex wasapplied for the firsttime in the world ina sidetrack branch

• Increase refinery throughputs

• Implement Quality Fuels Program

• Optimal highly activated catalysts

TNK-BP technology examples

Refining Excellence

Streamline Modeling

Samotlor

• Recovery factor increase

• Application of flow simulation streamline models for sector and full-scale modeling

Seismic imaging

Yamal, Uvat

• Access to additional resources

• Optimized drilling (significantly lower number of wells)

Orenburg / Samotlor

• Significant increase in oil production

• Energy savings

• The Rotaflex pump was applied for the first time in the world in a sidetrack branch

33

Gas business strategy: monetization of gas potential

Goals for Company’s gas business development to 2020

Gas value assurance for

“stranded resources” –

(Rospan, gas caps) – i.e. reserves monetization

Reduce gas flaring – attain maximum

possible associated gas utilization

Broaden gas options – to improve

leverage and provide growth

(organic/inorganic options)

Unlock the Company’s significant gas potential

Extend the gas value chain

34

World gas reserves and TNK-BP position

0 500 1 000 1 500 2 000 2 500 3 000 3 500

Norway

Egypt

Canada

Azerbaijan

TNK-BP Total

Bolivia

Romania

TNK-BP Rospan

United Kingdom

TNK-BP Gas Cap

TNK-BP Assoc. Gas

TNK-BP Other

Germany

Italy

bcmTNK-BP comparative gas reserves

Source: BP Statistical Review 2009, TNK-BP data (ABC1 reserves) Source: company reports, TNK-BP data

Ex

xo

n M

ob

il

Sh

ell

To

tal

Ch

ev

ron

Bri

tis

h G

as

TN

K-B

P

20

09

TN

K-B

P

(Str

ate

gy

20

20

)

0

10

20

30

40

50

60

70

80

90

100Gas production 2009

bc

m

TN

K-B

P

po

ten

tial

202

0

35

EBITDA, $/boe @ Brent = 75$

0

5

10

15

20

25

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Oil (West Siberia)

Gas (Export)

Gas (Domestic)

Source: TNK-BP Dynamics of Gas Prices in RF

4353

68 65

83(+26,5%)

95(+15%)

109(+15%)

126(+15%)

60$ Brent

70$ Brent

0

20

40

60

80

100

120

140

160

180

2006 2007 2008 2009 2010 2011 2012 2013

$/m

cm

FTS Fact and forecast 2010

Russian gas production and macro environment

Novatek Lukoil SurgutNG Rosneft TNK-BP Itera Nortgas

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Natural gas production + APG sales by in-dependents in 2008-2010

2008

2009

2010 (8 months)

2008 2009 2010 (8 months)

2020

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%11% 12% 13%

23%

Structure of Russian gas production

Independents Gazprom

Source: CDU TEK, TNK-BP estimates Source: CDU TEK

Source: FTS, TNK-BP estimates Source: TNK-BP estimates

36

36

Strong refining presence and an extensive marketing network

Nizhnevartovsk

Built in 1998

Capacity: 26 mbpd

Utilisation: 90%

Krasnoleninsk

Built in 1998

Capacity: 4 mbpd

Utilisation: 78%

YANOS (50%)

Modernised in 2006

Capacity: 286 mbpd (100%)

Conversion ratio: 63%

Light products output: 57%

Utilisation: 96%

Lisichansk

Modernised in 2008

Capacity: 144 mbpd

Conversion ratio: 71%

Light products output: 58%

Utilisation: 71%

Saratov

Modernised in 2004

Capacity: 132 mbpd

Conversion ratio: 70%

Light products output: 44%

Utilisation: 88%

1,434 retail sites

Moscow

Orenburg

Nizhnevartovsk

Nyagan

Novosibirsk

Ryazan

Modernised in 2006

Capacity: 323 mbpd

Conversion ratio: 63%

Light products output: 55%

Utilisation: 91%

Refining data as at end 2009, retail sites as at end 9M10

Retail sites

Refinery assets

Legend:

37

Projects in refining in Russia

37

Projects

Integrity and Quality

Efficiency and growth

TNK-BP’s Russian refining development program is focusing on:

• Sustainability of operations and achievement of highest HSE standards

• Compliance with RF technical regulation for gasoline, diesel and jet fuel, gasoline pool octane improvement

• Throughput expansion, deep conversion and fuel oil reduction projects

RNPK: VT4, Hydro cracking VGO, AVT 5, Reconstruction of FCC

SNPZ: Visbreaking, AVT6 upgrade

RNPK: Isomerization unit, Hydrotreater upgrade, MTBE

SNPZ: Isomerization unit, Hydrotreater upgrade

Area

38

Ukraine: an overview

Dnepropetrovsk

Odesa

L’viv Dnepropetrovsk

Donets’k

Kyiv

Khar’kiv

Lisichansk

249 jobber sites

170 own sites: 3 BP

167 TNK, Golden Gepard,

Vikoil

• LINIK is the best plant in the country, certified for quality management, environmental and H&S quality

• Most advantageous position and ample capacity to supply both Company owned and other channels in the highly populated east part of the country, as well as in the Kiev core market

• Production of diesel compliant with Euro 4 since 2007

• Turnaround of the refinery in May-June 2010 completed (every 2 years)

• Refining modernization plans: – To meet Euro 4 for all fuels from 1 January 2011

($70 mln investment planned)

– To increase light products output

• TNK-BP has 21%+ retail footprint in Kiev and an extensive jobber network all over the country

• TNK-BP exercises dual brand strategy and plans to leverage the premium brand BP and the logistic advantage in the east of the country

• Plans to further expand own retail network and increase market share

• May 2010 – acquisition of Vikoil with 118 retail sites, 8 depots, 49 oil trucks and 122 land plots in 13 regions

Priority market Current own retail

market share ~21%

Area of TNK-BP presenceRefining

Marketing

M&A

Lisichansk refinery

Modernized in 2008

Capacity: 144 mbpd

Conversion ratio: 71%

Light products output: 58%

Utilization: 71%

39

Other downstream areas

Strategic goal – expand trading activity to international oil markets and grow towards capturing additional value along the value chain

Gradual international expansion will allow to:

• Diversify the market routes

• Access new sources of trading value and enter new markets

• Better compete with our Russian peers and the growing number of other large producers that are accessing this value

• Support and monetize any future TNK-BP assets or positions outside of Russia participating in the related geographies

• Increase TNK-BP profits and make it more resistant to adverse market movements

Strategic goal – maximize Downstream integrated value on refining products (jet, bitumen, lubes, bunkering fuel) based on:

• Deriving profit from the most favorable customer segments or/and logistics

• Deriving profit from specific production opportunities (by-products)

• Profit of a customer offer and brand – when applicable

… and by means of the following criteria for separate businesses:

• Leadership in the industry (#1 or #2)

• Significant growth potential

• Unique value proposition (offer)

• Material integral margin for Downstream and substantiality

B2B International expansionB2B

40

Health, safety & environment

Health and Safety

• DAFWC* frequency improving, down 4% on 9M09

• Zero major vehicle accidents in 9M10 v 3 major vehicle accidents in 9M09

• Zero MVAR** in 9M10 v MVAR of 0.006 in 9M09

Environment

• Spills frequency also continuously improving:

– Number of spills per thousand tonnes produced down 15% on 9M09

– Spilt tonnes per thousand tonnes produced down 49% on 9M09

40

* Number of days away from work cases per 200 thousand man-hours worked

** Number of major or severe vehicle accidents per 1 m km driven

*** The International Association of Oil and Gas Producers

DAFWC2009 OGP*** average

2009 OGP Top Quartile

DAFWC Frequency – 12 Month Rolling Average

0.00

0.04

0.08

0.12

0.16

0.20

2007 2008 2009 2010

0.09

0.066

0.163

0.033

0.00

0.04

0.08

0.12

0.16

0.20

2007 2008 2009 2010

0.174

0.015

0.027

0.084

Spills Frequency – 12 Month Rolling Average

Number of spills per thousand tonnes produced

Spilt tonnes per thousand tonnes produced

41

Upstream

41

Production

• Impressive liquids production growth in Orenburg, up 8.8% in 9M10 v 9M09

• Production in Western Siberia down 3.5% in 9M10 v 9M09

• Share of greenfield barrels in total liquids production more than doubled: 10.8% in 9M10 v 4.6% 9M09

Uvat

• Production up 126% in 9M10 v 9M09 to 78 mbpd

Verkhnechonskoye (VCNG)

• Production up 148% in 9M10 v 9M09 to 51 mbpd, 5 th rig assembly commenced

Cost management

• Continuous focus on costs:

– Further improvement in ESP mean time between failure to 545 days as at end 9M10, up 11% v end 9M09

– Approx. $80 mln savings in 9M10 as a result of cost optimisation initiatives

– Ongoing work with contractors to reduce cost of services

3.0% (liquids) to 1,525 mbpd

3.4% (liquids & gas) to 1,734 mboed

9M10 v 9M09 daily production growth(excl. Slavneft)

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10

Samotlor (SNG) Orenburg Other brownfields Greenfields

mboedProduction (oil & gas, excl. Slavneft)

42

Technology and exploration

42

Cost optimization• Pilot programs of $100 mln being tried across the company• Successes on water shut-off and horizontal waterflood in Samotlor

E&A program• New discoveries / appraisal success in 9M10:

– Brownfields: 90 mmboe of recoverable reserves from 2 new fields in Orenburg– Greenfields: >200 mmboe of reserves in Yamal (Tagul) and Uvat

• Seismic acquisition in 9M10:– 2D: 4,405 km with focus on Greenfields (Uvat, Yamal) and Bluefields (Astrakhan, Timan-Pechora)– 3D: Brownfields 1,121 km2, Greenfields 1,218 km2

• 20 exploration wells completed in 9M10 with 65% success ratio

License acquisition• Acquisition of 3 licenses in federal auctions in Orenburg region in 3Q10 (including the large Pokrovsko-Sorochinsky

area) with estimated resources of >200 mmboe. Overall, >250 mmboe of resources added through auctions and M&A in 9M10

National Petroleum Consortium (NPC)* update•Subsoil rights transferred to the JV by Venezuelan presidential decree in July•Operating and funding framework established to enable JV start-up

* NPC is a JV between 5 Russian oil majors and Venezuelan PDVSA for the development of Junin 6 field

43

Downstream

43

Refining

• Operational availability for 2010 forecast at 97% – historical highest (v 91% in 2009 taking into account refinery units TAR cycle)

• Robust refining margins of over $12/bbl in 3Q10 and 9M10

• AVT-2 unit debottlenecking at RNPK completed in 3Q10

• All-time high average daily throughput in 9M10 at 715 mbpd

• 3Q10 throughput exceeding the plan by 319 k tonnes

• Strong refining performance generated additional $103 mln EBITDA in 9M10 from units mode optimization, high operational availability, logistics and cost optimization

STL

• TNK-BP continues to actively participate in exchange trading of oil products, with approx. 16% of 3Q domestic light product sales made through the exchange

• Increasing VCNG sales through ESPO: 512 k tonnes in 3Q10, up 10% on 2Q10. Total of 1,409 k tonnes in 9M10

• 1-year term contract signed with PetroVietnam for crude deliveries via ESPO

• Geneva-based trader: project team moving ahead with approved plans

Retail

• Strengthening position in premium markets in 3Q10:

– St. Petersburg: 2 BP sites put into operation in September and 3 BP sites under construction

– Moscow: 13 sites in reconstruction to BP brand, 1 new BP site under construction

• PULSAR branded fuel launched in St. Petersburg in September

• Streamlining of organizational structure by consolidating retail network in Russia

• Work in progress on further regional retail expansion

44

Gas

44

Rospan

• A long-term transportation agreement signed with Gazprom in 3Q10 with 6-year access to the pipeline system granted for up to 13.2 bcma in 2016

• A full field development plan is being prepared

• Long-term sales agreements with major customers are being prepared

• Rospan gas production at 1.9 bcm in 9M10, up 12% on 9M09 due to additional pipeline access negotiated with Gazprom

Associated gas

• Associated gas sales up by 5% in 9M10 on 9M09 due to on-going efforts to increase APG utilization plus turnaround idle time optimization at YugraGasPererabotka gas processing plant

• Associated gas utilization at 84.1% in 9M10, improving on 9M09, consistent with our commitment to increase utilization

• Approval given to TNK-BP’s first Kyoto Protocol project

NV GRES JV

• Main Equipment Supplier and General Design Contractor selected for the 3rd unit

Rospan gas production

Associated petroleum gas (APG) sales and utilization rate

1.71.9

0

2

9M09 9M10

bcm

7.0 7.4

83.3% 84.1%

0

1

2

3

4

5

6

9M09 9M10

bcm

APG sales APG utilization

45

45

Financial highlights2Q10 3Q10 9M10 9M09

76.9 75.6 Urals (average US$/barrel) 75.9 56.6

30.2 30.6 Foreign Exchange (average RUR/US$) 30.3 32.5

10,510 11,396 Revenues 32,143 24,747

1,137 1,286 Operating Expenses 3,476 2,945

2,385 2,562 EBITDA 7,233 6,663

1,160 1,447 Net Income 3,881 3,691

1,956 3,012 Operating Cash 6,941 4,617

5,818 4,290 Net Debt 4,290 5,134

995 1,100 Capex (organic) 2,749 2,098

$ mln $ mln

46

46

Business environment

Stronger markets in 9M10 v 9M09:• Urals higher by $19/bbl (34%)• Duty lag benefit lower by $4.5/bbl

3Q10 markets flat v 2Q10:• Urals slightly lower by $1.4/bbl (-2%)• Duty lag higher by $2.8/bbl

Negative impact of forex in 9M10 v 9M09:• RUR/$ strengthened 7% from 32.5 to 30.3• Negative forex effect on costs partly offset

by a positive effect on domestic sales

3Q10 average RUR/$ flat v 2Q10

20

25

30

35

40

Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Month-end exchange rates (RUR/USD)

-

20

40

60

80

100 $/bbl

PriceUralsDuty Reference PriceDomestic

1Q104Q091Q09 3Q092Q09 2Q10 3Q10

2009

2010

47

ExportExport

Domestic

DomesticExport

ExportDomestic

Domestic

9M09 Export Domestic Export Domestic Export Domestic Export Domestic 9M10

Crude CrudeProduct Product

Products

Crude

$25bn

$32bn$bn

47

Revenues

Price:

• Urals up 34%

• Domestic crude price higher by 24%

• Product prices up 21-41%

• Average realisations increased by 31%

* excl. Slavneft

Price Volume

Volume:

• Production growth of 58 mboed (+3.4%)*

• Changes in sales structure towards products

• Period-on-period stock effect

48

3.7 3.9

-

3

6

9M09 Price - Market Price - Duty lag Forex Tariffs Operations One-offs Other 9M10

$ bn

48

Net income – 9M10 v 9M09

Environment:

• Price: Urals up $19/bbl (34%)

• Duty lag: negative effect of $4.5/bbl

• Forex: negative effect on costs from stronger RUR

• Tariffs: transportation and electricity tariffs up c. 21%

Performance:• Operations: production up 58 mboed (+3.4%)

• One-offs: largely comparative effect of prioryear one-off benefits

49

49

Costs

• Forex negative effect: $0.2 bn

• Tariff increase of 19%

• Benefit from optimization of transportation routes and volume effects c.4%

• Overall cost increase of 18%

• Forex negative effect : $0.2 bn

• Inflationary increase of 8%

• Overall cost increase of 17%

2.3 2.7

-

1

2

3

9M09 Forex Tariff Routes 9M10

Transportation$bn

3.84.4

-

1

2

3

4

5

9M09 Forex Inflation Other 9M10

Opex & SG&A$bn

50

1.1 1.3

-

1

2

9M09 Taxable profit

One-offs Other 9M10

Income Tax$bn

50

Taxes

Taxes other than Income Tax higher by 54%:

• Urals price: causes 55% increase in Export Duties and MET ($5.4 bn) and negative duty lag effect ($0.7 bn)

• Volume: decreased exports partly offset by increased production

Income tax higher by 18%:

• Taxable profits: higher in 9M10

• One-offs: reduction of tax audit provision in 9M09

9.7

15.0

-

8

16

9M09 Price Volume Other 9M10

Taxes other than Income Tax$bn

51

51

Sources and uses of cash – 9M10

• Operations: strong pre-tax inflows of $22.9 bn

• Taxes: $16.0 bn paid in total

• Capex: $2.7 bn of organic investments

• Debt: $1.9 bn repaid with $1.2 bn of new debt raised

• Dividends: $2.2 bn paid in respect of 4Q09-2Q10 earningsOperations

Dividends

Capex

Taxes

5

10

15

20

25

Sources Uses

$ bn

Net debt repayment

52

52

Debt and liquidity

Debt maturity profile as of 30 September 2010

TNK-BP debt position• Portfolio of undrawn committed bank lines in excess of $500m maintained with 7 Russian and international banks

• Average portfolio life increased by 18% to 4.7 years v end 2009

• Strong free cash balances maintained

• Investment grade credit ratings with stable outlook maintained

• $2 bn bank club loan facility signed with 16 banks in October 2010, consisting of $1 bn term loan and $1 bn committed tranche

31.12.03 31.12.09 30.09.10

Gross debt $2.8 bn $7.0 bn $6.3 bn

Gearing 18% 28% 20%

Fixed / Floating 46% / 54% 66% / 34% 87% / 13%

USD denominated 62% 96% 96%

LT / ST debt 68% / 32% 80% / 20% 84%/16%

Unsecured / Secured 51% / 49% 93% / 7% 100% / 0%

Average life 2.9 years 4.0 years 4.7 years

100

490

500

500 600 500

1,000800

1,100

500

40

84 99

0

500

1,000

1,500

4Q 2010

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Other Eurobonds Bank debt$ mln