ÎŔÎ Oil and Gas Company «RussNeft» came into existence in September 2002 .
During 2002 -2003 the Company consolidated its business acquiring promising upstream assets. Initially the policy of the Company was aimed at setting up a high-performance competitive structure ranking among the leaders of Russian oil and gas sector and securing well-being of the communities in the areas of its operation.
During the second stage of its development (2004) «RussNeft» integrated its own and newly acquired subsidiaries into a unified production structure. At the same time the Company actively and persistently stepped up its resource basis by acquiring new assets. In 2004, due to the efficient management and consistent development policy, OAO Oil and Gas Company “RussNeft” was able to increase its crude oil production five times bringing it to 10 mln tons and to take place among the top ten oil companies of Russia.
In 2005 the Company reached the main goal of completing the circle of its vertical integration. That year proved to be the most fruitful in the story of the Company.
RussNeft:
- bought 2 oil refineries;
- increased its resources by 70%;
- commissioned the oil loading terminal in Bryansk Region;
- became the leader at the fuel market of Moscow and Moscow Region;
- successfully conducted its debut bond issue.
In 2006 ÎŔÎ Oil and Gas Company "RussNeft" focused on stabilizing oil production rate and preparing for intensive drilling in 2007. Commercial development of Nizhne-Shapshinskoye oilfield was started. Orsk oil refinery modernization allowed to increase the amount of oil refined by 30 %. This has been achieved by upgrading the technology of gasoline production, replacing catalysts at the reformer with more modern ones. At the same period the refinery launched producing Diesel oil under Euro-3 standards. A major achievement of 2006 was “RussNeft”’s access to foreign markets. This became possible owing to the signing of an agreement with SOCAR on joint performance of Zykh-Govsany oilfield development project in Azerbaijan.
In 2007 the Company maintained its position among top ten oil companies of Russia. In the conditions of developing new oilfields and work at old ones “RussNeft” managed to stabilize oil production output in amount of more than 14 mln tons a year. Herewith average daily production amounted to 39 thousand. tons. To a large extent it became possible due to business intelligence in the development of new highly-productive wells, application of new effective technologies of oil production in Western Siberia and dynamic carrying out of geological and engineering operations at the mature oil fields of the Company in the Volga region and Udmurtia.
In the sphere of oil refining the Company could accomplish major modernization of productive capacities and bring the annual output of refinery to 7,4 mln. tons. Modernization of some key units at the oil refineries allowed the Company to offer to the market more competitive oil products of European quality and actively develop oil chemistry projects: mineral motor, transmission oils and lubricants under the brand of “RussNeft”.
In 2008 the achieved targets formed the basis for enduring the global crisis which broke up that year. “RussNeft” managed to step up hydrocarbons production in 2008 (14.2 million tons + 0.55%) at the background of total drawdown of the figures throughout the branch, to increase refining output (7.5 million tons + 2.4%) and to build up its raw material base (+ 5% by 20 million tons of C1 category). The total volume of retail sales of oil products through the own distribution net of NK “RussNeft” in 2008 amounted to 650.8 thousand tons (+ 11%).
The Company continued implementation of geologic and exploration programs aimed at building up of the resource base of the holding. In 2008 in Saratov region there were discovered Lusianinskoye oilfield and new deposits within Tagrinskoye (KhMAO), Roslavlskoye (KhMAO), Belokamennoye (Saratov Region) and Gurarinskoye (Tomsk Region) oilfields. Consolidated proceeds exceeded 8 billion dollars. “RussNeft” settled all the tax claims existed for that moment and completely fulfilled its obligation on purchasing the bonds of debut bond issue put for buy-out.
In 2009 the principal factors of the holding’s activity were connected with implementation of the anti-crisis program: substantial reduction of cost and expenditures, control over expenses and optimization of financial and commodity flows, taking into account the situation at the markets, priority of implementation of investment projects with average pay-off period, improving efficient system of power supply, logistics and using contractors’ services. The Company preserved a number of key projects in the field of geologic exploration in Western Siberia, in Saratov region, in the republic of Udmurtia. The total sum of investments in the programs of geologic exploration works at “RussNeft” in 2009 amounted to 558 million 984 thousand rubles. The main part of these funds was assigned for Western Siberia, KhMAO – 308 million 551 thousand rubles. Within the frames of geologic exploration works there was drilled an exploration well at the Northern part of Tagrinskoye oilfield (“Severneft-Yarainer”); at Verkhne-Shapshinskoye oilfield (“Aki-Otyr”), seismic 3D works were performed at the territory of 130 km2. Among the other trends opf the program of geologic exploration works there are drilling of an appraisal well at Lusianinskoye oilfield (“Saratovneftegas”, Saratov Region), seismic works at 600 linear kilometers at Pavlovsky area (“Ulianovskneft”, Ulianovsk Region); seismic 3D works at 35 km2 at Pionersky license area (“UNNK”, Udmurtia”/ The Company’s plans to stabilize oil production at the level of target calculations are closely connected with implementation of drilling work program/ In 2009 “RussNeft” performed drilling works in Western Siberia at Shapshinskoye group of oilfields; in Saratov region – at the new oilfield Luzianinskoye; in Udmurtia – at Centralnoye oilfield. ”
7 years of “RussNeft”
|
produced |
77,691 thousand tons of oil |
|
refined |
29,497 thousand tons of oil |
|
Sold through the holding’s distribution net |
3 686,758 tons of oil products |
|
drilled |
49 exploration wells |
|
net profit received |
108 billion rubles |
|
Tax payments paid to all the levels of budget |
285 billion rubles |
The short-term strategy of development of OAO NK "RussNeft"
«RussNeft» will consider the problem of acquisition of new assets, corresponding to the profile of the Company and meeting its strategic priorities.
«Russneft» is going to raise its production efficiency by introducing state-of-the-art technologies and up-to-date oil and gas equipment investing in the development of its own productive capacities.
«RussNeft» will seek to secure a competitive rate of operational costs for oil and gas production at the expense of structural and technological innovations.
Another priority in the development of the Company is to meet the world’s standards of environmental, labour and industrial safety.
The long-term prospect of development of ÎŔÎ Oil and Gas Company «RussNeft» is connected with three trends:
The Company will seek to:
become a leading Russian producer of crude oil, gas and petroleum products;
enter the world’s financial and stock markets;
expand the geography of its operation.
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