Acquires 2 New Fields
in Eastern Siberia
||Chukotka West Ozyornoye field|
||Sibneft Key Expansion Barrier|
|Chukotka Auton Regn Overview 10 1998||
Oil Company (Sibneft)
Abramovich Canada Visit
Sibneft, managed by Roman Abramovich
|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
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.
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,
the company into line with international best practice. The most
tangible result of the charter was to prompt the appointment of three
to the company's board of nine directors. Through its commitment to
new technology, accurate and transparent financial planning and
as well as the adoption of international best practice across a range
commercial disciplines, Sibneft is determined to enter the new
setting a new benchmark for efficiency and profitability in the Russian
Key Expansion Barrier
MOSCOW, may 10 (energy24.com) - Sibneft has started production from the Krapivinskoye field in the Omsk region, marking a key step in the company's drive to expand production beyond its home base of Noyabrsk. Output from the field under the first phase of development is set to climb rapidly to a peak of around 7,000 barrels per day in 2003. Sibneft is also exploring nearby acreage, which is expected to raise this total to at least 20,000 barrels per day.
The first well at Krapivinskoye was brought on stream with output of some 300 bpd, and the blueprint for the first stage of development calls for the drilling of 14 wells.
The field has total recoverable reserves of
some 62 million
bpd, but this tally is expected to rise significantly following the
of additional exploration work.