Sibneft Smashes Targets With Record Production Growth

Moscow, 10 January 2001; Sibneft last year grew its production faster than other any major Russian oil company, with output rising by 20% to 368,000 barrels (51,100 tonnes) per day in December from 307,000 barrels (42,550 tonnes) per day in January. The unprecedented growth in output came on the back of a tripling in upstream investment after Sibneft successfully completed a wide-ranging restructuring.

Sibneft's annual production tally rose by 5.4% to 338,000 barrels per day (17.199 million tonnes) in 2000, up from 322,000 barrels per day (16.323 million tonnes) the previous year. The surge in production was fueled by a rapid acceleration in drilling, which doubled to 740,000 metres from 340,000 metres in 1999.

Sibneft last year launched a $1 billion oilfield development programme, commencing production from four new fields and opening new reservoirs at another two fields. The company aims to hike oil production by another 11% to over 375,000 barrels per day (19 million tonnes) in 2001. Sibneft plans to meet the aggressive growth target through a continued focus on applying cutting-edge technology, backed up by a further tripling in upstream capital expenditure to $595 million.

Sibneft's refinery throughput edged up slightly to 247,000 barrels per day (12.555 million tonnes) from 246,000 barrels per day (12.459 million tonnes) in 1999. The company's Omsk refinery continued its shift away from heavy products in favour of higher octane, higher value output, and the depth of refining rose to 82.4% from 80.6%.

The share of light products in the refinery's output slate climbed to 70.3% from 68.8% the previous year. Production of gasoline was up 11% to 3.512 million tonnes from 3.170 million tonnes the previous year, while fuel oil output was down 9% to 1.764 million tonnes from 1.946 million tonnes in 1999. Diesel production stayed on an even keel at 4.277 million tonnes (4.308 million tonnes in 1999), while jet fuel production slipped slightly to 628,000 tonnes from 690,000 tonnes.