Sibneft Acquires 2
New Fields in Eastern Siberia
Moscow. May 5, 2005
Sibneft continued to expand its resource base and moved into new
exploration territory today, winning two open subsurface resource
auctions. The company acquired licenses to explore and develop the
Srednetaimurinskiy block in Krasnoyarsk region in Eastern Siberia, as
well as the Zimniy block in Tyumen region in Western Siberia.
The Srednetaimurinskiy block in Krasnoyarsk is Sibneft’s first license
in Eastern Siberia, one of the most promising undeveloped oil provinces
in Russia. The company will pay 27.5 million rubles ($989,579 at
today’s exchange rate) for the license area, which has geological
resources of 166.9 million tons of oil and 429.7 billion cubic meters
of gas (1.22 billion barrels and 15.2 trillion cubic feet,
respectively).
The Zimniy block in Tyumen is located along existing pipeline networks
and has recoverable oil reserves (categories C1+C2+C3) of 8.66 million
tons (about 63.2 million barrels) and additional recoverable oil
resources of 6.94 million tons (50.7 million barrels). Sibneft agreed
to pay 828 million rubles ($29.8 million) for the license, which
equates to $0.47 per barrel of reserves or $0.26 per barrel of
recoverable resources.
“Today’s field acquisitions represent more than new additions to our
resource base,” said Sibneft president Eugene Shvidler. “They
demonstrate our efforts to broaden our geography from our traditional
base in Western Siberia when assets that meet our investment
requirements become available.” |
Chukotka West Ozyornoye
field
By OGJ editors HOUSTON, Aug. 8
OAO Sibneft, Moscow, laid a 104-km pipeline to deliver gas from West
Ozyornoye field to a power station in Anadyr in the Russian Far East.
The company completed the first of four wells to be drilled in the
field in the Chukotka autonomous district (see map, OGJ, Aug. 27, 2001,
p. 27).
West Ozyornoye is to produce 120 million cu m/year from 6 bcm of
reserves. It is the first pure gas field to be developed by Sibneft,
which plans to beef up the gas side of its business. It is studying a
range of projects to deliver pipeline gas and LNG and assessing gas
processing opportunities.
Sibneft had 40.8 bcm of proved gas reserves and 28.1 bcm of probable
and possible gas reserves at the start of 2002, as audited by Miller
& Lents Ltd., Houston.
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Introducing Sibneft
Sibneft is one of Russia's largest integrated oil
companies.
Our operations span exploration, crude oil production, refining,
wholesale
marketing of high quality petroleum products and the retail of gasoline
through our own chain of gas stations. Both upstream and downstream
operations
are located across Western and Central Siberia.
According to Miller & Lents, as of
January 1st
1999, Sibneft's total oil reserves stood at 6,736 million barrels, an
increase
of 21.5% on 1998, and in 1999 oil reserves increased by a further 15%.
This represents a total reserve life at current rates of production of
over 38 years. Judged by reserves, Sibneft is amongst the
world's
top twenty oil companies, larger than ENI. In 1999 the company
produced16,323,000
tons of oil (342,000 barrels per day), of which approximately 33% was
sent
for export. Production is set to begin rising again in 2000, with a
production
target of 20 million tons (400,000 barrels per day) by 2003. All
non-exported
crude is sent to Omsk for processing.
The refinery at Omsk is not only amongst the
largest in
the world but also by a significant margin, the most technically
advanced
in Russia. Omsk has a refining capacity of 19.5 million tons per annum,
although throughput in 1999 was only around 12.5 million tons. Thanks
to
the Omsk refinery, Sibneft is the largest producer of gasoline in
Russia
and dominates the market for unleaded fuel. On average, approximately
20%
of output is exported, of which the largest single product is
diesel.
Sibneft was formed as a result of the Russian
privatisation
programme in September 1995 and has since firmly established itself as
Russia's most progressive oil company. Sibneft has undertaken the most
ambitious structural reforms of any Russian oil company in order to
create
a modern, profit-oriented company committed to building long term
shareholder
value. In an industry historically committed to volume regardless of
price,
Sibneft has re-oriented the group assets to focus on value.
The corporate re-engineering process is far
from being
over but the results are already clearly reflected in the 1999 profits,
the ambitious new investment programmes, and the successful record of
spinning
off non-core businesses and social assets.
Sibneft has a very strong balance sheet and a
low level
of debt. The first Russian company to enter the Eurobond market,
Sibneft
continued to service all of its financial obligations throughout the
economic
crisis of1998 and emerged with its financial reputation enhanced.
Sibneft
is still the only leading Russian oil company to publish its
financial
accounts (audited by Arthur Andersen) to US GAAP standards.
In 1998 Sibneft became the first Russian
company to publish
a corporate governance charter, compiled by leading European experts,
bringing
the company into line with international best practice. The most
tangible result of the charter was to prompt the appointment of three
non-executives
to the company's board of nine directors. Through its commitment to
training,
new technology, accurate and transparent financial planning and
reporting,
as well as the adoption of international best practice across a range
of
commercial disciplines, Sibneft is determined to enter the new
millennium
setting a new benchmark for efficiency and profitability in the Russian
oil sector.
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