Most of the Company’s crude oil in Russia is produced by its subsidiaries: OJSC Gazprom Neft-Noyabrskneftegaz, LLC Gazprom Neft-Khantos, and LLC Gazprom Neft-East, and CJSC Gazprom Neft Orenburg (since October 2011). The companies are developing fields with in the Yamal-Nenets Autonomous District (YaNAD) and the Khanty-Mansiysk Autonomous District (KhMAD), and within the Omsk, Tomsk, Tyumen, Orenburg, and Irkutsk Regions.
The Company’s foreign subsidiary, NIS, explores and produces oil and gas in Serbia, Angola, Bosnia and Herzegovina, and Hungary.
Gazprom Neft is also a party to a number of production sharing agreements and hydrocarbon exploration and production projects in Iraq, Venezuela. Cuba, and Equatorial Guinea.
In addition to its own production, OJSC Gazprom Neft obtains production from three affiliates (in which the Company has 50% interest) proportionate to the equity share: OJSC Slavneft, OJSC Tomskneft VNK and Salym Petroleum Development (SPD).
The Company’s fields with the largest hydrocarbon reserves in the Yamal-Nenets Autonomous District are: Sugmutskoye, Sutorminskoye, Vyngapurovskoye, Sporyshevskoye and Muravlenkovskoye. The Company’s share of production at these fields represented 32.7% of its total crude oil production (net of the output by consolidated entities) in 2012. These fields are operated by the oil and gas production companies as follows: OJSC Gazprom Neft-Noyabrskneftegaz, its subsidiary LLC Zapoliar-Neft (holder of a development license at the Vingapursoye, Yaraynerskoye, and Novogodneye fields), and the Muravlenkovsky branch, OJSC Gazprom Neft-Noyabrskneftegaz.
Oil Production, mn t
In the Khanty-Mansiysk Autonomous District, the Company’s largest and most promising oil field is Priobskoye (with a development license held by the Company’s subsidiary, LLC Sibneft-Yugra), which is operated by LLC Gazprom Neft-Khantos.
LLC Gazprom Neft-Khantos’ total output was 12,304 thousand tonnes in 2012, which is 12% more than in 2011, and 3.8% above 2012 Business Plan targets.
LLC Gazprom Neft-Khantos is the leader in terms of production growth rates. Intensive development began at Priobskoye in 2004, and the field produced more than 23% of Gazprom Neft’s total output in 2008, and increased to 35.6% of total crude oil production from the Company’s fields in 2011. Priobskoye is a key asset that will play a strategic role in the Company’s future growth.
A total of 585 interventions were conducted by LLC Gazprom Neft-Khantos, resulting in 2,091 thousand tonnes of additional crude oil production.
The Company achieved this high level of performance due to exceeding its new well commissioning target by 10% (with 381 new wells brought into operation), and as a result of efficiently organizing the formation pressure system.
The north-eastern section of the Palyanovskaya area of the Krasnoleninskoye field is also located within the KhMAD, as is a cluster of license areas which the Company bought in early 2005 (Salym-2, Salym-3, and Salym-5), and the Zimneye field in the Tyumen Region. In 2008, LLC Gazprom Neft-Khantos won an auction for the rights to the section of the Zimneye field located within the KhMAD.
A cluster of regional fields in the Omsk and Tomsk Regions represents another new production center. Crude oil production operations at the Krapivinskoye field in the Omsk Region, and at the Archinskoye, Shinginskoye and Urmanskoye fields in the Tomsk Region, are conducted by LLC Gazprom Neft-East.
The Luginetskiye field cluster, purchased in 2010, has created a new production node which has yielded incremental crude oil production every year. Most of these reserves are at an early stage of development, and offer great potential for future production growth.
Assets in the Orenburg Region, purchased in 2011 – CJSC Gazprom Neft Orenburg, which is developing the eastern section of the Orenburg oil and gas condensate field; CJSC Technology Research Center, the license holder for the Tsarichanskoye field; OJSC Yuzhuralneftegaz, developer of the Kapitonovskoye field; and, in late 2012, LLC Zhivoy Istok, which conducting production at the Baleykinskoye field, totaled 2.2% of OJSC Gazprom Neft’s total output in 2012, or 1.1 million tonnes. Production is estimated to reach 6 million tonnes by 2018. Forecasted recoverable reserves (C1 + C2) – 113 million tonnes of oil, 53 billion cubic meters of free gas.
Since June 2009, OJSC Gazprom Neft has held a 50% interest in Salym Petroleum Development, a joint venture with Royal Dutch Shell. In 2012, Salym Petroleum Development produced 7.622 million tonnes, of which 3.811 million tonnes were naturally attributable to Gazprom Neft, an 11% reduction from 2011.
Gazprom Neft’s overseas business, though Serbia-based NIS, succeeded in considerably increasing its oil output. In 2012, NIS produced 1.223 thousand tonnes, which is 7.9% more than in 2011 (1.133 thousand tonnes).
Gazprom Neft maintained its leading position among Russian producers as measured by levels of oil and gas output in 2012.
Gazprom Neft’s consolidated crude oil production was 50.78 million tonnes of oil in 2012, a 1.6% increase over 2011, and also 0.25% ahead of the 2011 Business Plan.
Since late 2007, OJSC Gazprom Neft and OJSC Rosneft have been equal joint venture partners with alternating management of OJSC Tomskneft VNK (in accordance with their shareholder agreement). Starting in January 2011, operating control of OJSC Tomskneft VNK was transferred to Gazprom Neft for a three-year period.
OJSC Tomskneft VNK produced 10.226 million tonnes of oil in 2011, which exactly matched the business plan and 0.5% more than in 2010; Gazprom Neft’s share was 5.113 million tonnes of oil.
OJSC NGK Slavneft is a joint venture between OJSC Gazprom Neft and TNK-BP. The company is developing reserves in the Khanty-Mansiysk Autonomous District – Yugra and conducts exploration in the Krasnoyarsk Territory.
The company produced 17.864 million tonnes of oil in 2012, which is 1.2% less than in 2011; Gazprom Neft’s share was 8.932 million tonnes of oil and 0.421 billion cubic meters of gas.