Krasnodarneftegaz

Krasnodarneftegaz was established in 1992 and later became part of Rosneft. The company operates in the Krasnodar region of Southern Russia, where crude oil has been produced since 1943. Krasnodarneftegaz is currently the major upstream company in the region, and is also Rosneft’s second largest gas producer after Purneftegaz. In 2008, the company accounted for 24.4% of Rosneft’s total gas output (including the share in production by affiliates).

Krasnodarneftegaz is carrying out hydrocarbon exploration, development, and production at about 50 licensed blocks. As the majority of its fields are significantly depleted, the company makes extensive use of advanced recovery methods to maintain consistent oil flow rates. Krasnodarneftegaz’s key competitive advantage is its proximity to the shortest Black Sea transport routes, which enables efficient crude oil exports to the international market.

Krasnodarneftegaz’s crude is transported via field pipelines to the Transneft’s system for further export either via Transneft’s Black Sea terminals or the CPC pipeline. Alternatively, crude oil can be delivered for processing to Rosneft’s Tuapse Refinery.

In 2008, Krasnodarneftegaz produced 1.26 mln tonnes (9.2 mln barrels) of crude oil and 3.02 bcm of gas. The company’s gas output grew 4% compared to 2007.

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

Proved hydrocarbon reserves, mln boe	344
Proved oil reserves, mln barrels	68
Proved gas reserves, bcm	46.9

Probable hydrocarbon reserves, mln boe	190
Probable oil reserves, mln barrels	46
Probable gas reserves, bcm	24.3

Possible hydrocarbon reserves, mln boe	389
Possible oil reserves, mln barrels	66
Possible gas reserves, bcm	54.8

Krasnodarneftegaz’s hydrocarbon production

	2006	2007	2008
Oil, thousand tonnes	1,605	1,559	1,255
Oil, mln barrels	11.7	11.4	9.2
Gas, mcm	2,564	2,901	3,018

Krasnodarneftegaz’s operating highlights

	2006	2007	2008
Exploration drilling, thousand m	13.1	6.4	5.6
2D seismic, linear km	113	177	80
3D seismic, square km	80	90	0
Production drilling, thousand m	0.0	11.1	2.1
Operating well stock, units	2,880	1,809	1,644
New production wells, units	2	4	2