Severnaya Neft

Severnaya Neft is the Company’s main oil producer in Timan Pechora. The enterprise was acquired by Rosneft in June 2003, and is currently an integral part of the Company’s production base.

Severnaya Neft is engaged in the development and oil production at 17 fields in the Timan Pechora oil and gas province. Its reserve base is highly concentrated, with 70% of proved reserves located within two groups of fields, Baganskaya (Baganskoye, South-Baganskoye, and North-Baganskoye) and Val Gamburtseva (Nyadeiyuskoye, Khasyreiskoye, and Cherpayuskoye). At present, Severanay Neft accounts for 3% of Rosneft’s proved oil reserves.

Production is currently underway at 11 of the company’s 17 fields. Severnaya neft is Rosneft’s fourth largest oil production unit. In 2008 it provided 5.0% of Rosneft’s total crude output (including the share in production by affiliates). Severanaya Neft is particularly focused on developing the Val Gamburtseva group of fields, where the average well flow rate is far above the Russian industry’s average.

Severnaya Neft operates in the region with a well-developed pipeline infrastructure that connects all of its fields to the trunk Usinsk — Yaroslavl pipeline owned by Transneft, which extends to Russia’s western border. Part of the crude oil transported via the Usinsk — Yaroslavl pipeline is reloaded into tank cars at Rosneft’s transshipment facilities at the Privodino station located halfway between Usinsk and Yaroslavl. Crude oil is then transported by rail to Arkhangelsk for further shipment to Western European markets. Oil is exported by shuttle tankers from Rosneft’s Belokamenka floating terminal anchored near Murmansk. This independent transshipment scheme allows Rosneft to export additional crude oil volumes as Transneft’s export quotas for the Company do not apply in this case.

Production of oil and gas condensate by Severnaya Neft in 2008 was 39.1 mln barrels and gas output was 0.32 bln cubic meters.

Major fields: Val Gamburtseva and Baganskaya groups.

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

Proved hydrocarbon reserves, mln boe	481
Proved oil reserves, mln barrels	481
Proved gas reserves, bcm	0

Probable hydrocarbon reserves, mln boe	180
Probable oil reserves, mln barrels	180
Probable gas reserves, bcm	0

Possible hydrocarbon reserves, mln boe	189
Possible oil reserves, mln barrels	189
Possible gas reserves, bcm	0

Severnaya Neft’s hydrocarbon production

	2006	2007	2008
Oil, thousand tonnes	5,610	5,616	5,350
Oil, mln barrels	41.0	41.1	39.1
Gas, mcm	245	338	323

Severnaya Neft’s operating highlights

	2006	2007	2008
Exploration drilling, thousand m	2.2	3.7	3.7
2D seismic, linear km	0	0	0
3D seismic, square km	350	288	0
Production drilling, thousand m	65.0	88.6	82.7
Producing oil wells, units	215	233	265
New production wells, units	24	26	23