Production and Development
In 2014, hydrocarbon production was 251.6 mm tons of oil equivalent, which means organic growth by 4.8%, year-on-year. With the new assets added, from the acquisition date production grew by 14.5%.
Rosneft is the largest public company worldwide in terms of reserves and production output. The Company produces oil at the main production enterprises in Western and Eastern Siberia, Timan Pechora, Central Russia, southern part of the European part of Russia and in the Russian Far East. The Company also holds 20% stake in Sakhalin-1 project and 50% stake in OAO Tomskneft VNK, both accounted for in Rosneft’s reporting using the proportional consolidation method, and it also ensures oil and gas production via 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, Venezuela, Brazil, Norway, Algeria, UAE, USA, Canada and Turkmenistan.
In 2014, the Company focused its efforts at:
- maintaining the production level at the brownfields of Western Siberia and Volga-Urals Region, including rollout of new technologies;
- building up production and planned development of greenfields (Uvat group, Vankor and Verkhnechonsk projects). The share of greenfields in the production output made up 20%;
- optimization of opex and capex, including implementation of the programs aimed at improving energy efficiency.
In 2014, hydrocarbons production totaled 251,6 million tons in oil equivalent, which intrinsically exceeds the level of 2013 by 4.8%. Factoring in the new assets, from the acquisition date the production output growth totaled 14.5%. In 2014, crude and liquids production totaled 204.9 mmt. Daily crude and liquids production remained at the level of 4.2 mm bbl/day. The 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 notable success in slowing down production decline rates was 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 and implementation of the program aimed at the increase of associated gas utilization level (up to 81% in 2014 versus 70% in 2013). In particular, in the second quarter of the year 2014, the gas pipeline was launched at the Vankor field. In 2014, the level of 95% of AG utilization was achieved at OOO RN-Purneftegaz on account of completion of putting into operation of the booster compressor station at the Kharampurskoye field for gathering, treatment and supply of associated gas of Kharampurskoye field group. The Company is committed to developing its gas business in the long-term perspective. In 2014 the Company proceeded to pilot production of hard-to-recover gas resources at the Turonian deposit of the Kharampurskoye field located in the territory of Yamalo-Nenets Autonomous District. The fist gas produced is already arriving at the booster compressor station of the Kharampurskoye field. Pilot well exploitation, which later on will allow to identify accurately the technologies required for efficient commercial exploitation of Turonian deposits at all Company’s licensed blocks, is carried out Purneftegaz blocks.
In 2014, the exploration and production capex totaled 350 billion rubles exceeding the similar YoY result by 20 billion rubles, or by 6%. The works implemented in 2014 are primarily concerned with completion of the active phase of building Vankor’s infrastructure and that of the number of other Company’s fields, development of the gas program in Krasnodar and implementation of works related to geological exploration drilling and development of fields in Yamal and in Irkutsk Region.