Wednesday, Jul 29, 2009

Weatherford International Ltd. (NYSE: WFT) and TNK-BP announced today that, following approval by Russia’s Federal Anti Monopoly Service, TNK-BP has completed the sale of its Oil Field Services (OFS) enterprises to Weatherford

International Ltd pursuant to the Sales and Purchase Agreement signed on May 29, 2009.

Via this transaction, Weatherford acquired ten OFS companies providing drilling, well workover and cementing services operating in West Siberia, East Siberia and the Volga-Urals region. The OFS companies employ 6,600 people and generated over $600 million in revenue last year. The business is sold as a going concern.

The transaction will accelerate the continued productivity growth of the existing drilling and workover business available to TNK-BP. It will allow the company to focus on the core business of producing, refining and marketing crude oil.

Weatherford strengthens its position as a major provider of products and services in this important market, which will further improve the overall performance of Russia’s oil field services.

TNK-BP is Russia’s third largest oil company, 50% owned by BP and 50% owned by AAR (Alfa, Access Renova). TNK-BP also owns close to 50% of another Russian oil and gas company, Slavneft. TNK-BP accounts for approximately 16% of Russia’s production (including its share of Slavneft). SEC proved reserves (life of field basis) were 8.112 billion boe as of December 31, 2008. The company’s upstream operations are located in West and East Siberia and the Volga-Urals region. TNK-BP owns and operates five refineries in Russia and Ukraine, and retails through a network of 1,400 service stations working under the BP and TNK brands.

www.tnk-bp.com

Weatherford is a Swiss-based, multi-national oilfield service company. It is one of the largest global providers of innovative mechanical solutions, technology and services for the drilling and production sectors of the oil and gas industry. Weatherford operates in over 100 countries and employs over 50,000 people worldwide.

For more Weatherford press releases go to www.youroilandgasnews.com