Upstream

As the largest independent oil company in the Russian Federation, Rusneftegaz has significant investments in the production of petroleum. Our controlled companies, affiliates, and partners are involved in the extraction and processing of hydrocarbons to produce crude oil and a wide range of refined products, including various grades of liquid and gaseous fuels, lubricants and industrial chemicals. Through our subsidiaries, we operate 26 oil licenses across both the Timan-Pechora basin in the Komi Republic, and also the Khanty-Mansi Autonomous Okrug in the West Siberian petroleum basin, the two richest oil-producing regions in Russia. At the end of 2022, our geologists conducted an audit conforming to PRMS international standards, with our total proven and probable hydrocarbon deposits being estimated at 134 million barrels of oil equivalent. Our full output data for the past five years can be seen in the table below:

		2018	2019	2020	2021	2022
Total oil production	(Mbbl)	4,759	5,632	6,062	5,597	5,940
Average daily oil production	(bpd)	13.041	15.431	16.565	15.335	16.274
Peak daily oil production	(bpd)	15.309	16.642	18.959	16.219	17.625

 

With oil acting as the central pillar of our business, the reorganization of our corporate group in 2005 provided an opportunity for Rusneftegaz to improve, update and modernize our existing petroleum extraction program. This included the dual aims of both improving production volumes, and also providing additional financial and intellectual means to develop operative oil reserves. As a result, output in the last fiscal year was approximately 5,94 million barrels, creating a strong basis for our enterprise to move forward in the future. This success can be attributed to numerous factors, such as our extensive technical expertise and vast experience in implementing large-scale hydrocarbon projects. As a consequence, our organization capitalizes on its rich deposits of crude whilst maintaining a low cost per barrel.

With such vast resources available, a scheme has been devised and approved by managers and engineers to ensure sustainable growth in our oil division. Fundamentally, technology is the bulwark of our modernization plans, including utilizing digital applications and systems to assist with the management of our sites. For instance, we now possess automated programs that have the capability to calculate an optimum extraction rate, primarily to maximize both the short and long-term benefits of our mineral assets. These unique approaches have conclusively lowered operating expenses for us, and ensured the preservation of our licensed areas for the years and decades ahead. The strategy also relies on the use of innovative techniques to work on wells that require production intensification and enhanced recovery mechanisms, in addition to the implementation of specialized solutions to increase the productivity of our fields that operate with a low yields and profits.

Despite ongoing updates to this framework, our entity has always profited from the application of pioneering engineering. For example, we routinely conduct geological and hydrodynamic studies of our oil deposits to accumulate data that can be utilized in our state-of-the-art stimulation software. The computer models generated have consequently increased our understanding of these formations, and the technological support required to develop the oil production process more effectively. By way of illustration, we now use more advanced quality assurance methods and have drastically improved the economic and technical analysis throughout all our locations. Such undertakings ultimately would not be able to be conducted without the utilization of expert personnel recruited from across the world, with Rusneftegaz also consulting and collaborating regularly with international companies to establish best practices, and maintain our operations in accordance with contemporary standards.