Udmurtneft

Udmurtneft is the largest oil-producing enterprise in the Udmurt Republic. In August 2006, the Chinese Sinopec acquired a 96.86% stake in the company from TNK-BP through a specially created company, Promleasing. Additional shares in Udmurtneft were purchased by Promleasing from minority shareholders, increasing its stake to 97.08%. On December 11, 2006, Rosneft exercised an option to purchase 51% of Promleasing. Rosneft indirectly holds 49.51% in Udmurtneft.

Udmurtneft holds 60 hydrocarbon exploration and production licenses. To maintain consistent output, the company makes extensive use of the most up-to-date field development technologies, including advanced recovery methods, horizontal well drilling, etc.

Udmurtneft’s fields have access to all necessary transport infrastructure. Outputs are exported and delivered to Rosneft’s Samara refineries via the trunk pipeline system owned by Transneft.

Thanks to the application of the latest EOR methods Udmurtneft achieved a 2.3% increase in oil production at its fields in 2008 compared with 2007 to a level of 46.0 mln barrels.

Udmurtneft’s reserves (100%, PRMS, DeGolyer & MacNaughton, as of December 31, 2008)

Proved hydrocarbon reserves, mln boe	748
Proved oil reserves, mln barrels	748
Proved gas reserves, bcm	0

Probable hydrocarbon reserves, mln boe	433
Probable oil reserves, mln barrels	433
Probable gas reserves, bcm	0

Possible hydrocarbon reserves, mln boe	411
Possible oil reserves, mln barrels	411
Possible gas reserves, bcm	0