Sibneft Leads Industry With Production Growth

Moscow, 3 October 2001; Sibneft achieved the fastest rate of organic production growth of any major Russian oil company in the first three quarters of 2001, according to official figures released by the Energy Ministry. Sibneft's production jumped by 18.7% to 393,000 barrels per day (14.89 million tonnes) in the first nine months of the year from the same period last year.

The large hike in production has resulted from a combination of improving productivity at existing fields combined with intensive investment in developing new fields. Sibneft is working with international oilfield service providers Schlumberger and BJ Services on a wide-ranging programme to boost well productivity which includes hydrofracturing and side trackings.

The company this year launched an ambitious two-year horizontal drilling programme covering some 60 wells. Horizontal wells drilled in the first half of 2001 yielded average production of 1,853 barrels (257 tonnes) per day, against 454 barrels (63 tonnes) per day for new wells in general.

Sibneft is targeting total production in 2001 of 405,000 barrels per day (20.5 million tonnes), up from 338,000 barrels per day (17.2 million tonnes) in 2000. Investment in exploration and production is expected to total $595 million.

Sibneft president Eugene Shvidler welcomed the exceptional results. "Our success in raising output strengthens the need for the company to acquire new refining capacity," he said. "This is one of the reasons why we have decided to participate in the tender for Norsi Oil."