Upstream

As the largest independent oil company in the Russian Federation, Rusneftegaz has significant investments in the production of petroleum. Our subsidiaries, affiliates, and partners are involved in the extraction and processing of hydrocarbons to produce crude oil and a wide range of petroleum products, including various grades of liquid and gaseous fuels, lubricants and industrial chemicals.  Through our subsidiaries and affiliates, Rusneftegaz operates 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 the Russian Federation. At the end of 2022, DeGolyer and MacNaughton conducted an audit conforming to PRMS international standards, with Rusneftegaz’s total proven and probable hydrocarbon reserves being estimated at 134 million barrels of oil equivalent. Our total extraction 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

 

The production of oil is the central pillar of our business, and the reorganization of the Group in 2005 provided an opportunity for Rusneftegaz to improve, update and modernize its existing petroleum extraction program. This included the dual aims of both improving production volumes, and also providing additional financial and intellectual resources to develop operative oil reserves. As a result, total oil production in the last financial year was approximately 5,94 million barrels, creating a strong basis for our organization to move forward in the future. This success can be attributed to numerous factors, including our extensive technical expertise and vast experience in implementing large-scale petroleum projects. Consequently, our organization capitalizes on its rich reserves of crude oil whilst maintaining low extraction costs per barrel.

​With such extensive resources available, a framework has been devised and approved by managers and engineers to ensure sustainable growth in our oil operations. Fundamentally, technology is the bulwark of the company’s modernization program, such as utilizing software and systems to assist with the management of sites, in addition to calculating an optimum extraction rate to maximize both short and long-term benefits. These practices have conclusively lowered operating costs for Rusneftegaz, and ensured the preservation of extraction capacity for decades into the future. The strategy also relies on the use of specialized and innovative techniques to work on wells that require production intensification and enhanced recovery methods, in addition to the implementation of technical solutions to increase the productivity of sites that operate with a low yields and profits.

​Despite ongoing updates to the production framework, our organization has always profited from the application of innovative engineering. For example, Rusneftegaz is continually conducting full geological and hydrodynamic studies of all our oil deposits to accumulate data that can be utilized in our state-of-the-art stimulation software. The computer models generated as a result ultimately improve our understanding of the technological support required to develop the oil production process more effectively. This includes more advanced quality assurance methods and the enhancement of economic and technical analysis across all 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 contemporary production practices.