Grozneftegaz

Grozneftegaz is a Rosneft subsidiary operating in the Southern Federal District of Russia. It was established in 2000 on the basis of oil producing assets of the Chechen Republic, which had been severely damaged in the course of military actions in the 1990s. Since then, crude output in the region has grown more than 20 times, primarily due to Rosneft’ continuous efforts to restore and improve the republic’s oil production infrastructure. Grozneftegaz is currently among the Company’s most efficient upstream divisions.

Grozneftegaz’s crude oil is transported by rail to the CPC pipeline for further delivery to export markets.

In 2008, Grozneftegaz produced 1.9 mln tonnes (13.9 mln barrels) of crude oil and 0.6 bcm of gas.

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

Proved hydrocarbon reserves, mln boe	174
Proved oil reserves, mln barrels	135
Proved gas reserves, bcm	6.7

Probable hydrocarbon reserves, mln boe	88
Probable oil reserves, mln barrels	68
Probable gas reserves, bcm	3.4

Possible hydrocarbon reserves, mln boe	53
Possible oil reserves, mln barrels	40
Possible gas reserves, bcm	2.1

Grozneftegaz’s hydrocarbon production

	2006	2007	2008
Oil, thousand tonnes	2,119	2,137	1,900
Oil, mln barrels	15.5	15.6	13.9
Gas, mcm	459	508	614

Grozneftegaz’s operating highlights

	2006	2007	2008
Exploration drilling, thousand m	4.4	1.0	0.0
2D seismic, linear km	0	0	0
3D seismic, square km	0	0	0
Production drilling, thousand m	3.8	4.0	0.9
Operating well stock, units	212	248	233
New production wells, units	1	0	1