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.

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.

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.

2009 was the first full calendar year of production at the field. Oil production at the field in 2009 was 8.6 mln barrels (1.2 mln tonnes), of which the Rosneft share was 2.2 mln barrels (306 thousand tonnes) or 25.94%.

A total of 38 new production wells were brought into operation during the year, and the number of wells in production at the end of the year was 59.

Until November 2009, oil from Verkhnechonskoye was transported via a section of the Eastern Siberia – Pacific Ocean (ESPO) pipeline operating in reverse. After the first section of the ESPO pipeline was commissioned, oil supplies began to be exported via the port of Kozmino.

Rosneft and TNK-BP concluded a shareholder agreement in November 2010, which gave Rosneft additional rights related to managing the Verkhnechonskneftegaz company. Oil production at the field in 2010 was 19.0 mln and the share of Rosneft was 4.9 barrels or 25.94%. A total of 44 new oil wells were brought into operation during the year, and the number of wells in production at the end of the year was 88.

All oil from Verkhnechonsk was sent to export via the Eastern Siberia – Pacific Ocean pipeline.

Verkhnechonskneftegaz reserves (100%, PRMS, DeGolyer & MacNaughton, as of December 31, 2010)

Crude oil production by Verkhnechonskneftegaz

Contact Information

Full name: OJSC Verkhnechonskneftegaz

General Director: Igor Rystamov

Address: 295 B, Baikalskaya str., Irkutsk, 664050, Russia

Tel: +7 (3952) 283-300
Fax: +7 (3952) 255-697

E-mail: vcng@vcng.ru