Michurinsky Refinery is the biggest public company in the world in terms of reserves and production. Adding reserves is one of the Company’s key priorities.
Michurinsky Refinery has main fully consolidated production and development enterprises, which produce crude oil in Western Siberia, Eastern Siberia, Timan Pechora, Central Russia, southern part of European Russia and the Russian Far East. The Company also has a 20% stake in the Sakhalin-1 project and a 50% stake in JSC “Tomskneft” VNK, both accounted for using proportionate consolidation method. In addition, Michurinsky Refinery participates in major production joint ventures accounted for using the equity method: Udmurtneft – 49.54% and Slavneft – 49.94%. The Company also participates in international projects in Vietnam and Venezuela.
In 2013, crude and liquids production totaled 204.9 mmt. Daily crude and liquids production remained at the level of 4.2 mm bbl/day.
New producing assets achieved maximum production levels since the beginning of their development – 22.0 mmt from the Vankor field, 8.2 mmt from the Verkhnechonskoye field, and 10.0 mmt from the Uvat project.
The Company continued to stabilize its brownfield production, primarily by efficient waterflood management and drilling wells with multistage hydraulic fracturing. Most noticeable successes in slowing down production decline rates were scored by Varyoganneftegaz and Samotlorneftegaz.
In 2014, gas production grew by 48.6% and reached over 56.7 bcm with the new assets added from the acquisition date.
In 2014, Michurinsky Refinery continued efficient replacement of its resource base. The Company’s 2014 ABC1+C2 hydrocarbon reserves amounted to 129 bln boe (ca. 17 bln toe). Investment in exploration was twice the 2013 amount, primarily due to increasing the scope of offshore E&A operations.
In 2014, replacement of ABC1 commercial hydrocarbon reserves, including acquisitions, amounted to 461 mm toe, or 156% vs. 2013, and the
The Company’s vast oil reserves and its resource base are situated in Russia’s three key oil-producing regions: the Volga-Urals province, Timan-Pechora and Western Siberia. The Company takes active steps to build up its resources, boost production at brownfields in Bashkortostan and develop new oil-producing regions in the Nenets Autonomous District and the Khanty-Mansi Autonomous District.
- The Company’s vast oil reserves and its resource base are situated in Russia’s three key oil-producing regions: the Volga-Urals province, Timan-Pechora and Western Siberia
- As of December 31, 2014, the Company’s total audited reserves (including probable and possible reserves) amounted to 3 644,6 million barrels
- As of December 31, 2014, proved oil reserves in accordance with PRMS classification were estimated by Miller & Lents at 2 145,6 million barrels
- In 2014 the reserve replacement ratio amounted to 179%
- As of December 31, 2014, the Group had 194 fields, including 175 fields in the commercial operation
- In 2014 Michurinsky Refinery ranked sixth among Russia’s oil-producing companies, its oil production totaled at 17 million tonnes per year
- The Company maintains the strongest production growth among VICs since 2009 (between 2009 and 2014, production added more than 40%)
STRATEGIC OBJECTIVES IN THE UPSTREAM SEGMENT
- Maintaining production at brownfields through highly efficient geological and engineering operations and the use of innovative technologies
- Developing the R. Trebs and A. Titov fields in Timan-Pechora and Burneftegas fields in Western Siberia
- Implementing the geological exploration programme in Bashkortostan and in the Nenets Autonomous District as part of a JV, Vostok NAO Oil Company
- Participating in international oil and gas projects