October 2005

07.10.2005
2005 RussNeft to Double Oil Output in Komi Republic against 120 Thousand Tons in 2004.

NK RussNeft OAO plans to increase its oil output in the Republic of Komi nearly in two times against 120 thousand tons produced in 2004, as is reported in a statement of the Company.  
RussNeft has operated in Komi via its affiliated oil producer Komnedra OAO (earlier UPK Nedra OAO) since 2004. The volume of Komnedra’s oilfields commercial crude recoverable reserves amounts to 9.5 million tons of crude oil.
The expectations of the Company related to oil production growth have been particularly pinned to Vostochno-Rogozinsk license site and Masterielsk group of oilfields. Therefore in 2004 the Company implemented a strategic program of geotechnical actions. Specifically, they started to get ready for 3D exploration seismology at the Vostochno-Rogozinskoye oilfield. In 2004 they did vertical seismic profiling at the Severo-Masterielskoye oilfield, they also reinterpreted seismic data of the past years which allowed getting more specific information about geological structure of the oilfield and determining places for new wells drilling.
In 2004 Komnedra produced 120 thousand tons of crude oil. Following the above actions, 2005 oil output is expected to double against the last year figures, said in a statement of Russneft.
RussNeft is placed among the ten first-rate oil and gas companies of RF. Total recoverable reserves of RussNeft exceed 600 million tons, its annual oil output reaching 14.5 million tons. RussNeft structures 25 producing, 1 refining and some transport entities. The Company owns a retail network of petrol stations found in 13 regions of Russia and CIS. In the current year the Company has bought Association Grand ZAO with 64 petrol stations in Moscow and Moscow region. According to the last year results, RussNeft produced 10 thousand tons of crude. The Company’s turnover, as stated by its president and founder Mikhail Gutseriev, amounts to $3 billion. Along with M. Gutseriev the shareholders of the Company are some of his business partners.
Stakes ranging from 39.8% to 49% in Russneft’s oil producing subsidiaries (Varieganneft, Ulyanovskneft and Nafta-Ulyanovsk) belong to international feed trader Glencore. 


Source: "AK&M"