Verkhnechonskneftegaz

Verkhnechonskneftegaz is engaged in the exploration and development of the Verkhnechonskoye oil and gas condensate field, one of the largest in Eastern Siberia. It is located in the Katangsky district of the Irkutsk Region, approximately 420 km to the northwest of Ust-Kut, and held about 0.8 bln barrels of proved crude oil reserves as of December 31, 2008.

Project participation:

Rosneft — 25.94%
TNK-BP — 62.71%
Eastern Siberian Gas Company — 11.29%
minority shareholders — 0.06%

The Verkhnechonskoye field, together with the 8 neighbouring exploration blocks, is one of the Rosnefts’s top-priority projects in Eastern Siberia.

A range of preparatory work was carried out in 2008 at the Verkhnechonskoye field for the launch of full-scale field development and the start of commercial oil production. Most of the units and construction needed for oil production, including an oil pipeline connection from the field to the East Siberia — Pacific Ocean pipeline, had been built and commissioned by September 2008. A total of 19 production wells were completed during 2008, and there were 27 production wells in operation at the field by the end of the year.

Commercial production at the Verkhnechonskoye field began in October 2008. Oil from the field is transported via a section of the East Siberia — Pacific Ocean pipeline, which is operating in reverse direction, to Taishet and further to Rosneft’s Angarsk Refinery. To implement this shipment scheme, in July 2008, Rosneft and TNK-BP signed an agreement under which TNK-BP’s share in crude oil produced by Verkhnechonskneftegaz is fully or partially swapped for Yuganskneftegaz’s crude until the East Siberia — Pacific Ocean pipeline completion. Yuganskneftegaz’s crude is shipped in a westward direction as decided by TNK-BP.

Production at the field in 2008 was 1.1 mln barrels, of which the Rosneft share was 0.3 mln barrels. Rosneft delivered its share of oil from Verkhnechonskoye for processing at its Komsomolsk refinery.

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

Proved hydrocarbon reserves, mln boe	770
Proved oil reserves, mln barrels	766
Proved gas reserves, bcm	0.7

Probable hydrocarbon reserves, mln boe	688
Probable oil reserves, mln barrels	562
Probable gas reserves, bcm	21.4

Possible hydrocarbon reserves, mln boe	564
Possible oil reserves, mln barrels	513
Possible gas reserves, bcm	8.5