Commercial Production at Slavineft's Kuyumbinskoye Field in Krasnoyarsk Region Will Start in 2017

10 October 2013

The Kuyumbinskoye oil and gas field situated in the Krasnoyarsk Region, whose license is owned by OOO Slavneft-Krasnoyarskneftegaz will be put to commercial production in 2017.

At the first stage of operation in 2017, the total of 295 ths tons of oil will be produced, according to the plan. It is expected that the annual oil production volumes will gradually increase to reach as much as 10.8 mln tons in 2029 as the new deposits of the Kuyumbinskiy and other license areas of Slavneft-Krasnoyarskneftegaz are put to production.

From 2010, active operational infrastructure setup and preparation of hydrocarbon reserves for production have been performed at the Kuyumbinskoye field. Over the recent period, the tank farm with the capacity 30 ths tons has been built and the pilot program has been successfully performed at the oilfield: 7 production wells were drilled (4 wells with horizontal tailing-in, 2 low-angle wells and 1 directional well). The wells are operated with free flow and the oil rate of <nobr>50-80</nobr> tpd with minimum underbalance. 2 more horizontal wells will be put to production before the end of year, and from 2014 to 2015, 16 wells will be constructed including 2 wells bilateral horizontal wells.

SN-KNG performs exploration activities at 5 license areas of the Evenki municipal area of the Krasnoyarsk Region, including: the Abrakupchinsky, Kordinsky, Podporozhny, Kuyumbinsky and Tersko-Kamovsky license areas. The territory of SN-KNG’s operations covers the total of 18 thousand square kilometers. The Company’s key discovered fields are located at the Kuyumbinskiy and Tersko-Kamovskiy license areas located at Yurubcheno-Tokhomskaya oil and gas accumulation zone.

At the moment, OOO Slavneft-Krasnoyarskneftegaz fully performs its license obligations on the search, exploration and production of hydrocarbons at its subsoil areas. The Company’s Exploration Program is aimed to achieve all the target indicators of the license agreements as related to 2D and 2D seismic surveys, exploration and prospecting drilling at the developed territories and geologic and geophysical data processing. Moreover, the Kuyumbinskoye field development investment project preapproved by Slavneft’s Shareholders provides for additional exploration activities at this subsoil area in <nobr>2014-2016</nobr> above the existing license obligations.

From the moment of its foundation in 1998 until 2012, OOO Slavneft-Krasnoyarskneftegaz has drilled 45 exploration and prospecting wells at the license areas of the Krasnoyarsk Region. The drilling meterage exceeded 118.7 ths meters. 2D seismic surveys performed over the same period amounted to 8,253 km and 3D seismic — 1,532 sq. km. Vertical seismic profiling was performed at 26 wells. Due to comprehensive exploration activities, over 15 years, the Company managed to achieve C1 recoverable reserves increment in amount of over 150 mln t and C2 reserves in amount of 223.4 mln t.

OOO Slavneft-Krasnoyarskneftegaz is one of the industry leaders in terms of hydrocarbon reserves increment in Eastern Siberia. As of January 1, 2013, С1+С2 remaining recoverable reserves on the books of OOO Slavneft-Krasnoyarskneftegaz amounted to 504.7 mln tons (including С1 — 152.9 mln tons, С2 — 351.9 mln tons).