TEXT-Moody's release on TNK-BP

(The following statement was released by the rating agency)

Aug 5 - Moody's Investors Service today changed the outlook on TNK-BP International Ltd ("TNK-BP") Baa2 ratings to developing from stable.

The change in rating outlook reflects the general uncertainties surrounding the current shareholder dispute between BP and AAR, a consortium of Russian shareholders.

Moody's no longer considers a stable outlook appropriate in the context of potential changes to the composition of the Board and Executive Management as well as the potential impact this may have on the company's future operational and financial policies.

Moody's also recognizes that the path to any shareholder resolution remains fluid and discussions are ongoing. It also observes that the current management arrangement, with the CEO operating remotely, is not sustainable over a lengthy period.

The recent announcement of the CFO's departure also adds further uncertainty, notwithstanding that the remaining members of the established financial team at the company currently remain unchanged. At this time, TNK-BP's underlying operational and financial performance remains particularly strong, and is expected to remain so throughout 2008, absent of any shift in strategy or financial policy.

The company is well positioned in its rating category as it continues to implement its organic strategy and deploy its capital expenditure plan. The rating and outlook will ultimately be dependent upon further developments at the TNK-BP shareholder level.

Moody's will continue to monitor the situation in the context of the parameters set for the rating. TNK-BP, headquartered in the British Virgin Islands, is one of the largest oil companies in Russia, jointly owned by BP Plc and Alfa-Access Renova.

At year-end 2007, the group had 9.0 billion barrels of oil equivalent of proved SEC reserves and it produced close to 1.8 million barrels of oil per day. TNK-BP generated total net revenues of USD 27.5 billion in 2007.