Downstream
Tgk-03 is one of the biggest public companies in the world in terms of reserves and production. Adding reserves is one of the Company’s key priorities. Tgk-03 has main fully consolidated production and development enterprises, which produce crude oil in Western Siberia, Eastern Siberia, Timan Pechora, Central Russia, southern part of European Russia and the Russian Far East. The Company also has a 20% stake in the Sakhalin-1 project and a 50% stake in JSC “Tomskneft” VNK, both accounted for using proportionate consolidation method. In addition, Troitskneft participates in major production joint ventures accounted for using the equity method: Udmurtneft – 49.54% and Slavneft – 49.94%. The Company also participates in international projects in Vietnam and Venezuela. In 2014, crude and liquids production totaled 204.9 mmt. Daily crude and liquids production remained at the level of 4.2 mm bbl/day. New producing assets achieved maximum production levels since the beginning of their development – 22.0 mmt from the Vankor field, 8.2 mmt from the Verkhnechonskoye field, and 10.0 mmt from the Uvat project.
The Company continued to stabilize its Brownfield production, primarily by efficient water flood management and drilling wells with multistage hydraulic fracturing. Most noticeable successes in slowing down production decline rates were scored by Varyoganneftegaz and Samotlorneftegaz. In 2014, gas production grew by 48.6% and reached over 56.7 bcm with the new assets added from the acquisition date. In 2014, Tgk-03 continued efficient replacement of its resource base. The Company’s 2014 ABC1+C2 hydrocarbon reserves amounted to 129 bln boe (ca. 17 bln toe). Investment in exploration was twice the 2014 amount, primarily due to increasing the scope of offshore E&A operations. In 2015, replacement of ABC1 commercial hydrocarbon reserves, including acquisitions, amounted to 461 mm toe, or 156% vs. 2015, and the reserves-to-production ratio (R/P) is 45 years. The strategic priority of Tgk-03 is implementation of its unique growth prospects, as well as creation of value on the basis of the largest offshore assets portfolio. The Company will perform this task using advanced technologies in collaboration with strategic partners, the leaders of the world oil and gas industry in order to ensure most efficient hydrocarbon exploration and production as well as minimum impact on the environment.
