Vankorneft

The Vankor field is located in the northeastern part of the West Siberian oil and gas province in the Krasnoyarsk region. The field straddles the border of the Turukhansky district in the Krasnoyarsk region and the Dudinsky district in the Taimyr region.

The Vankor field was discovered in 1988. In 2003, Rosneft acquired Anglo-Siberian Oil Company that held development licenses to the Vankor field. Currently, Rosneft’s subsidiary CJSC Vankorneft is engaged in the field development.

In 2007, Vankorneft was primarily involved in the construction of the first startup complex that will allow commissioning the field already in the near future.

Rosneft plans to drill the Vankor field primarily with horizontal wells, 75% of which will have smart completion. Due to the absence of a well-developed infrastructure and adverse climatic conditions, field facilities are being designed on a modular basis using the experience obtained in developing West Siberian, Sakhalin, and Alaska fields.

Crude oil from the Vankor field is planned to be transported via Rosneft’s 550-km Vankor — Pur-Pe pipeline, which is currently under construction. The pipeline is expected to have an annual capacity of 20 mln tonnes, which, if necessary, may be increased up to 30 mln tonnes. The Vankor — Pur-Pe pipeline will link into Transneft’s trunk pipeline at a junction near Purneftegaz’s fields. The Company will be able to ship the Vankor crude either eastward via the East Siberia — Pacific Ocean pipeline (currently under construction), or westward via the Transneft pipeline system.

In July 2008, Rosneft and TNK-BP signed an agreement under which 13 mln tonnes of Vankor crude will be annually swapped for 13 mln tonnes of crude oil from TNK-BP’s Samotlor field, once the East Siberia — Pacific Ocean pipeline is completed. The Samotlor crude will be shipped eastward via the East Siberia — Pacific Ocean pipeline, whereas crude oil from the Vankor field will be transported westward. This scheme will allow the companies to reduce transportation costs, while also ensuring continuous oil supplies on their strategic routes.

Upon completion of the East Siberia — Pacific Ocean pipeline, Rosneft will be able to reach peak production at the Vankor field, which would allow accelerating exploration of the licensed blocks adjacent to Vankor. The minimum crude production capacity of Vankor field is currently set at 21.5 mln tonnes per year (430,000 barrels per day).

In 2007, Rosneft carried out 8,900 meters of exploration drilling at the Vankor field and completed N13 and N15 exploration wells. Comprehensive exploration activities enabled the Company to add more than 250 mln barrels of proved oil reserves under the SPE classification.

In 2007, production drilling at the Vankor field totaled 78,400 meters. Rosneft started oil production at the Vankorskaya-9 well to ensure adequate fuel supplies to drilling crews. Overall, in 2007, Rosneft produced 2,500 tonnes of crude oil and 45.5 mcm of gas.

In addition, core equipment for Phase I of the gas turbine power station was delivered to Vankor. Within this project, Rosneft started construction of the main building and completed a cast-in-place footing for turbines and generators. The Company also installed tank farms, commissioned an electricity network, and completed a shift camp for 1,220 people.

Vankorneft’s reserves (SPE, DeGolyer & MacNaughton, as of December 31, 2007)

Vankorneft’s operating highlights