Polar Lights

LLC Polar Lights Company, a parity joint venture between Rosneft and the American ConocoPhillips, produces crude oil at the northern fields of the Timan-Pechora oil and gas province. The company is operated by ConocoPhillips. A 50% stake in Polar Lights was acquired by Rosneft in 2003.

Polar Lights develops five fields of the Ardalinskaya group: Ardalinskoye, East-Kolvinskoye, Oshkotynskoye, West-Oshkotynskoye, and Central-Khoreiverskoye. The latter was discovered by the joint venture and its development began in 2008. Polar Lights’ crude oil is transported westward via Transneft’s Usinsk — Yaroslavl pipeline for further shipment to Western European markets.

Output by Polar Lights in 2008 was 7.8 mln barrels of oil, of which the Rosneft share was 3.9 mln barrels. Polar Lights production wells are highly effective as their average flow rate was 131 tonnes (958 barrels) per day in 2008.

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

Proved hydrocarbon reserves, mln boe	27
Proved oil reserves, mln barrels	27
Proved gas reserves, bcm	0

Probable hydrocarbon reserves, mln boe	7
Probable oil reserves, mln barrels	7
Probable gas reserves, bcm	0

Possible hydrocarbon reserves, mln boe	21
Possible oil reserves, mln barrels	21
Possible gas reserves, bcm	0

Polar Lights’ hydrocarbon production (100%)

	2006	2007	2008
Oil, thousand tonnes	1,200	1,167	1,063
Oil, mln barrels	8.8	8.5	7.8
Gas, mcm	32	33	34

Rosneft’s share in Polar Lights’ hydrocarbon production

	2006	2007	2008
Oil, thousand tonnes	600	583	531
Oil, mln barrels	4.4	4.3	3.9
Gas, mcm	16	17	17

Operating highlights (100%)

	2006	2007	2008
Exploration drilling, thousand m	9.9	3.4	3.4
2D seismic, linear km	0	0	0
3D seismic, square km	154	154	0
Production drilling, thousand m	0.2	7.2	0.0
Producing oil wells, units	22	22	24
New production wells, units	0	2	2