Russian Oil Production Research 7/7/08
Russian Oil Company General Stats:
Rosneft: In2007, Rosneft became the largest oil producer inRussia. The Company’soutput1 totaled 740mln.barrels (101.2mln.tonnes) ofcrude oil and gas condensate, and 15.7bcm. ofgas, up27.0% and 15.6%, respectively, compared to2006. This significant increase inoutput was driven byRosneft’snew acquisitions and sustained organic growth. The share ofassets acquired in2006—2007inRosneft’stotal output growth was 119mln.barrels (16.3mln.tonnes) ofcrude oil and 1.2bcm. ofgas, while the organic increase inhydrocarbon production equaled 6.6%.
Crude oil production1
th.tonnes / 73,874 / 79,658 / 101,157
mln.barrels / 540.39 / 582.70 / 739.97
Gas production1, mcm. / 13,029 / 13,584 / 15,705
Operating well stock, units / 15,023 / 18,931 / 22,663
Average flow rate ofproduction oil wells, barrels per day / 101 / 109 / 94
Average flow rate ofnew production oil wells, barrels per day / 589 / 714 / 713
Production drilling, th.meters / 1,064 / 1,398 / 2,611
New production oil wells, units / 218 / 280 / 648
Upstream production and operating expenses, USD per barrel ofoil produced / 2.49 / 2.83 / 3.48
1— Including production ofsubsidiaries and Rosneft’sshare inaffiliates.
LukOil:Oil and Gas Reserves
According to the data audited by Miller and Lents (USA), LUKOIL’s proved reserves as at January 1, 2007 are estimated at 20.360 billion barrels of oil equivalent (boe), including 15.927 billion barrels of oil and 26.597 trillion cubic feet of gas.Reserves category / Oil
(million barrels) / Gas
(billion cubic feet) / Total (million barrels of oil equivalent*)
Proved reserves
Including:
Developed
Undeveloped / 15,927
10,176
5,751 / 26,597
7,480
19,117 / 20,360
11,423
8,937
Probable reserves / 8,767 / 21,436 / 12,340
Possible reserves / 4,275 / 10,479 / 6,022
Production
Crude oil production by LUKOIL Group (including share of production by equity affiliates) in 2007 totalled 96.645 million tones (1.953 million barrels per day), of which 94.147 million tonnes were produced by Company subsidiaries. The Company’s average daily crude production level rose by 1.4% compared with 2006.LUKOIL Group Oil Production by Regions, million tonnes
2004 / 2005 / 2006 / 2007
Total / 86.200 / 90.158 / 95.235 / 96.645
Russia / 82.720 / 86.277 / 89.561 / 91.100
Western Siberia / 56.351 / 58.469 / 59.764 / 59.917
Urals / 10.082 / 10.307 / 10.923 / 11.257
Volga / 3.175 / 3.210 / 3.214 / 3.240
Timan-Pechora / 11.732 / 12.476 / 13.601 / 14.576
Other / 1.380 / 1.815 / 2.059 / 2.110
International / 3.480 / 3.881 / 5.674 / 5.545
Oil transportation
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Oil exports by LUKOIL subsidiaries fromRussia (including oil acquired from other producers) decreased by 3.7% in 2006 compared with 2005, to 44.13 million tonnes. Exports to the far abroad countries were 39.79 million tonnes, and exports to the near abroad countries were 4.34 million tonnes. The Company carefully managed its export routes in 2006, giving preference to the most profitable. Main export routes were via the ports of Primorsk and Novorossiysk, which accounted for 46% of exports by the Company (31% in 2005). A further 21% of exports (19% in 2005) were to Germany and Poland through the Druzhba pipeline. Due to changes in the economic environment exports via the CPC system (Caspian Pipeline Consortium) were completely halted in 2006. LUKOIL made no crude exports in 2006 via the ports of Vysotsk, Butinge and Vitino or by rail to China.
th. tons / 2003 / 2004 / 2005 / 2006
Export and sales on international markets / 37,751 / 46,030 / 45,916 / 41,017
including export and sales to near-abroad countries / 4,069 / 4,076 / 3,254 / 2,958
Domestic sales / 5,979 / 1,637 / 672 / 1,823
Total / 43,730 / 47,667 / 46,588 / 42,840
Export of crude oil using Transneft export routes / 32,763 / 38,909 / 38,529 / 41,478
Export of crude oil bypassing Transneft / 5,367 / 7,389 / 7,288 / 2,655
Total crude oil exports / 38,130 / 46,298 / 45,817 / 44,133
Petroleum product sales
In 2006 LUKOIL exported 20.5 million tonnes of petroleum products from Russia to near and far abroad countries (23.5% more than in 2005), of which 37.4% was diesel fuel, 28.6% was fuel oil, 19.3% was vacuum gasoil, 5.0% was straight-run gasoline, 3.3% was oils and lubricants and 6.4% consisted of other products.
th. tons / 2003 / 2004 / 2005 / 2006
Export and sales on international markets / 33,995 / 41,426 / 56,666 / 64,729
Wholesale / 30,193 / 35,946 / 49,549 / 57,558
Retail / 3,802 / 5,480 / 7,117 / 7,171
Domestic sales / 20,473 / 19,724 / 19,970 / 19,150
Wholesale / 17,967 / 16,981 / 16,421 / 15,155
Retail / 2,506 / 2,743 / 3,549 / 3,995
Total / 54,468 / 61,150 / 76,636 / 83,879
Petroleum product export, %
2003 / 2004 / 2005 / 2006
Naphta / 4.1 / 4.7 / 4.0 / 5.0
Diesel fuel / 40.5 / 40.1 / 39.2 / 37.0
Vacuum gas oil / 11.0 / 14.2 / 19.2 / 19.3
Fuel oil / 29.5 / 28.0 / 29.2 / 28.6
Lubricants / 4.4 / 4.4 / 3.5 / 3.3
Other / 10.5 / 8.6 / 4.9 / 6.4
Petroleum product exports from Russia , mln tons / 13.5 / 14.1 / 16.6 / 20.5
Petroleum product export by transport types,%
2003 / 2004 / 2005 / 2006Rail / 62.5 / 64.6 / 75.5 / 82.9
River / 18.4 / 22.3 / 18.4 / 13.4
Pipeline / 19.1 / 13.1 / 6.1 / 3.7
Oil Company Breakdown:
Rosneft:Yuganskneftegaz- Rosneft’s largest oil-producing enterprise. Itholds licenses todevelop 26oilfields located inthe Khanty-Mansiysk Autonomous District ofWestern Siberia. Yuganskneftegaz was established in1977, and inearly 2005, itwas fully integrated into Rosneft’score production base.Yuganskneftegaz isresponsible for fields that contain approximately 16%ofWestern Siberia’srecoverable oil reserves. Nearly 80%ofthem are concentrated inthe Priobskoye, Mamontovskoye, Malobalykskoye and Prirazlomnoye fields. The region’soilfields have serious potential toexperience increases inhydrocarbon reserves through additional exploration and lower-lying strata and those previously overlooked during earlier stages ofWestern Siberia’sdevelopment.The reserves-to-production ratio atYuganskneftegaz isequal to28years, which iswell above the average of15years for the global industry.The fields atYuganskneftegaz are integrated into the region’stransport infrastructure. Oil produced istransported via the nearby Ust-Balyk-Omsk pipeline, which belongs toTransneft, either for export orsales onthe domestic markets.
2006Proved oil reserves mln. tonnes 1 561.796
mln. barrels 11 363,96
2006 Probable oil reserves mln. tonnes 681.874
mln. barrels 4 959.61
2006 Possible oil reserves mln. tonnes 517.004
mln. barrels 3 789.62
2006Prospective oil resources (mln. barrels) 1 764
Purneftegaz: Rosneft’s second largest production enterprise and anintegral part ofits resource and production base, Purneftegaz was established in1986inthe Yamalo-Nenets Autonomous District ofWestern Siberia, near the town ofGubkinsky.In2006, Purneftegaz was engaged indevelopment and production ofoil, gas condensate and natural gas at14fields.Reserves atPurneftegaz are highly concentrated. Seventy-two percent ofits oil reserves are concentrated atonly four fields…Purneftegaz’ fields are also located inclose proximity torailways, which connect the Pur-Pe station with Surgut. Rosneft uses this route totransport gas condensate produced byPurneftegaz and Selkupneftegaz, which allows the Company toavoid mixing the product with oil from other producers using the Transneft pipeline.
Primary fields: Kharampur, Tarasovskoye, Barsukovskoye, Komsomolskoye
2006 Proved oil reserves (mln. barrels) 1 869.45
2006 Probable oil reserves (mln. barrels) 1 385.29
2006 Possible oil reserves (mln. barrels) 1 989.66
2006 Prospective oil resources (mln. barrels) 1 671.12