Vankorneft

Vankor Field

The Vankor field is located in the north of Eastern Siberia (the Krasnoyarsk region) close to the border with the Western Siberia (Yamal-Nenets Autonomous District) and at a 600-km distance from the Purneftegaz assets.

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

Proved oil reserves of the Vankor field are 1.5 bln barrels and it is expected to produce up to 500 th. barrels per day (25 mln tones per year) of crude oil at its plateau. The crude oil will be transported via Rosneft’s newly built 550-km Vankor — Purpe pipeline, which links into Transneft’s trunk pipeline at a junction near Purneftegaz’s fields. The pipeline has an annual capacity of up to 30 mln tonnes (600 th. barrels per day). Rosneft 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 (until the completion of the East Siberia — Pacific Ocean pipeline all the volumes are expected to be shipped westward).

The Vankor field will be one of the major sources of Rosneft’s production growth in the mid-term, and it is planned to be launched in the second half of 2009. Upon completion of the East Siberia — Pacific Ocean pipeline, Rosneft will be able to reach peak production at the field, which would allow accelerating exploration of the 14 licensed blocks adjacent to Vankor.

In 2007, production drilling at the Vankor field totaled 78,400 meters. Rosneft drills the Vankor field primarily with horizontal wells, 75% of which have smart completion. Rosneft started oil production at the Vankorskaya-9 well to ensure adequate fuel supplies to drilling crews.

In 2008 production drilling at the field totaled 142,100 meters and 31 production wells were drilled. Work continued on construction of the Vankor – Purpe pipeline (408 km of a total 578 km had been built by the end of the year), as well as on construction of an oil treatment unit and oil pumping stations.

As of June 30, 2009, the pipeline and other infrastructure needed for the launch of the field were completed and testing of the installed equipment was in process. Capital expenditures of Vankorneft were USD 4.4 bln in 2006 - Q1 2009.

Vankorneft’s reserves (PRMS, DeGolyer & MacNaughton, as of December 31, 2008)

Proved hydrocarbon reserves, mln boe	1,854
Proved oil reserves, mln barrels	1,490
Proved gas reserves, bcm	61.9

Probable hydrocarbon reserves, mln boe	2,094
Probable oil reserves, mln barrels	1,604
Probable gas reserves, bcm	83.2

Possible hydrocarbon reserves, mln boe	908
Possible oil reserves, mln barrels	771
Possible gas reserves, bcm	23.3

Vankorneft’s operating highlights

	2006	2007	2008
Exploration drilling, thousand m	8.7	8.9	4.1
2D seismic, linear km	200	0	0
3D seismic, square km	0	0	0
Production drilling, thousand m	17.9	78.4	142.1
Operating well stock, units	0	1	1
New well stock, units	0	1	1