Production and Exploration

JSC Gazprom Neft’ is one of the leading oil companies in Russia in terms of production volume and is well placed to strengthen its position further.

 

The JSC Gazprom Neft’ principal producing facilities in Noyabrsk and Khanty-Mansiysk, which operate under the severe climatic conditions of Western Siberia, ensure the continued improvement of the Company’s performance from year to year. Oil exploration and production are also carried out in Omsk and Tomsk Regions. JSC Gazprom Neft’ and its subsidiaries currently hold more than 60 exploration and extraction licenses, and the proven reserves of the fields belonging to the Company exceed 4.5 billion barrels  

In 2006 JSC SibNeft’-NoyabrskNeft’egaz remained the largest oil-producing asset within JSC Gazprom Neft’. Its annual production volume totalled 21.36 million tonnes of oil, accounting for 65.3 % of the Company’s overall annual production.

 

One of the Company’s largest and most promising oil fields is Priobskoye Field in Khanty-Mansiysk AD (465 million barrels according to SPE). Its active development began in 2004 and just two years later, in 2006, the field already accounted for some 10 percent of the 33 million tons of crude oil produced by the Company. The Priobskoye Oil Field is a key asset with a strategic role in the further development of JSC Gazprom Neft’, and is scheduled to become the main source of the Company’s oil production growth in the long run.

 

The Company’s other “new” production centre will emerge in the very nearest future, centred on a regional cluster of oil fields in the Omsk and Tomsk Regions. During the next 5 years the Krapivinskoye Oil Field in Omsk Region and the newly acquired Archinskoye, Shinginskoye and Urmanskoye Oil Fields in Tomsk Region are expected to become leading oil producers here.

 

Secondary oil recovery methods are applied in oil fields with declining production levels. The Company’s goal is to maximise oil recovery factor (ORF) here. Gazprom Neft’ intends to increase the Company’s average ORF value from 30 percent at present to 40 percent by 2020.

 

A significant part of the Company reserves is at the early stage of development thus, creating a strong basis for potential growth in future. Development of the Priobskoye and other new oil fields owned by Gazprom Neft’ is expected to help boost oil production to 80 million tonnes by 2020, that is, two and a half times higher than present levels.