Oil and gas production
The Company is increasing its reserves in addition to the volume and efficiency of production at its own and shared assets. Gazprom Neft is active in the exploration, development and production of oil and gas in Russia and abroad.
Growth in hydrocarbon production in 2016 was due to:
- current assets – further drilling of the Priobskoye field and Orenburg assets;
- major projects – increased production at the Prirazlomnoye and Novoportovskoye fields, at assets belonging to SeverEnergy LLC (Arcticgas), Northgas CJSC and Badra, and the launch of the East Messoyakha field.
Key objectives in 2017:
- to ensure at least 3% growth in hydrocarbon production at the Company;
- to integrate 34.28 million tonnes of hard-to-recover reserves (HTRR) into development.
Factors contributing to growth in production:
- Novy Port:
- the start of year-round oil shipments via the Gates of the Arctic marine terminal;
- launch of technological infrastructure facilities for 5.5 million tonnes;
- start of operations by two Arc7 tankers to ensure year-round oil shipments;
- launch of commercial production;
- start of oil delivery to the Transneft pipeline system;
- exemption obtained for export duty;
- commissioning of a gas turbine power plant with total capacity of more than 90 MW.
- 32 tankers of oil shipped;
- 4 wells drilled (3 production wells and 1 injection well);
- a shift camp and waterworks were put into operation;
- launch of construction and installation work and site preparation for an in-house heliport.
The target oil production profile for 2017 includes:
- 5.5 mn t for the Novy Port field;
- 2.6 mn t for the Prirazlomnoye field;
- 1.5 mn t for the East Messoyakha field (based on Gazprom Neft’s stake).
The Company is actively developing its gas business with a focus on commercialising the reserves of associated and natural gas produced at fields. The Gazprom Neft Group’s gas programme envisages accelerated growth in gas production in Russia.
The development of small gas deposits that make up larger fields at which Gazprom Neft operates will further enhance the cost-effectiveness of the utilisation of the Company’s reserves and help increase hydrocarbon production to 100 million TOE per year, as envisioned by the Company’s Development Strategy until 2025.
Gazprom Neft assumed the leading position in the industry in terms of oil production growth rates among Russian oil companies in 2016. Oil production increased by 7.2% over the reporting year.