BP strikes it rich with Russian oil

OIL giant BP will tell investors today that its Russian ventures will lift oil output there by as much as 14% this year and a further 6% to 8% next year.

That easily beats first hopes of 10% followed by 4% to 5%. The company is keen to scotch worries that the assets for which it is paying some £4bn are 'tired'.

Chief executive Lord Browne has set out a seven hour presentation to City investors.

Bob Dudley, chief executive of its main Russian joint venture TNKBP, said in Moscow that it should lift production this year to 1.26m barrels a day, up between 12% and 14%. He said the group would reinvest up to 40% of its cash flow from the fields.

Markets were enthusiastic when Browne agreed the TNK venture with its boss Mikhail Friedman. But lately worries set in about the age of the Russian fields and how much new spending they would need.