Vankorneft; 99.5% subsidiary of Rosneft is one of the Russian leading vertically integrated oil & gas companies. Main activities of the Company are exploration and production of oil & gas, production of petroleum products and petrochemicals, and marketing of these outputs. Most of the Company's exploration and production activity is located in Russia, and its main resource base is in Western Siberia. Vankorneft owns modern refineries, gas processing and petrochemical plants located in Russia. Most of the Company's production is sold on the international market. Vankorneft petroleum products are sold in Russia, Asia countries, Eastern and Western Europe.

Vankorneft carries out its activities in Russia's largest oil- and gas-bearing regions such as Yamalo-Nenets Autonomous District, Tomsk and Omsk Regions. The Company's major oil refineries are located in the Omsk, Moscow and Krasnoyarsk Regions. Vankorneft distribution network operates countrywide and is currently one of the fastest growing oil companies in the country.

A growing number of clients in Russia and dozens of other countries depend on our reliability and ability to fulfill our obligations and use those products to improve the quality of their lives.

Vankorneft has been successfully implementing its strategy of steady production growth, supported by constant monitoring and adoption of innovative technology. In 2009, the Company produced a total of 796 mln barrels of crude oil (1.16 mln barrels per day), thus posting a fivefold growth in crude output over the last five years. Furthermore, the Company consistently maintains high operating efficiency, and has the lowest upstream production and operating expenses among its national and major international peers.

Vankorneft is also one of the leading gas producers in Russia, with an annual output of natural and associated gas exceeding 10 bcm. The Company’s vast and unique reserve portfolio ensures steady long-term growth in gas output. Vankorneft is currently implementing comprehensive measures aimed at achieving a target gas utilization rate of 75%, one of the Company’s high-priority objectives.

Vankorneft observes high international standards of corporate governance and transparency in its business and adheres to internationally accepted accounting standards. Highly respected independent non-executive directors have held one third of the seats on the since 2005. Our Company pursues a policy of social responsibility toward its own employees and members of their families, to the people in the regions where it operates and to wider society in general.

Vankor Field

The Vankor oil & gas field is the biggest field to have been discovered and brought into production in Russia in the last 25 years. It is located in the northern part of Eastern Siberia, in Turukhansky District of Krasnoyarsk Territory, 142 km from the town of Igarka. The area of the field is 447 square km.

Recoverable reserves (ABC1 and C2 under Russian classification) are estimated at over 3.8 bln barrels (524 mln tonnes). PRMS reserves (proved, probable and possible) were 3.6 bln barrels (508 mln tonnes) as of December 31, 2009. The target for annual production at the field is 510 th. Barrels per day or 25.5 mln tonnes of oil per year (about 5% of total Russian oil production). Oil from Vankor is one of the main inputs to the Eastern Siberia – Pacific Ocean pipeline.

Development of the field is Rosneft’s largest project and is among the largest projects in Russia today. Total capital expenditures for development of the field in 2005–2009 were USD 6.5 bln.

The official ceremony for field launch was held on August 21, 2009.

A total of 142 wells had been drilled at Vankor by the end of 2009 (including 119 production and injection wells). Construction work completed at the field included 1,685 infrastructure facilities, 148 km of field pipe work, 60 km of gas pipe work, 120 km of roads, storage facilities, a mini-refinery and several up-to-date shift camps.

Vankorneft’s reserves (PRMS, DeGolyer & MacNaughton, as of December 31, 2009)

Proved hydrocarbon reserves, mln boe

1,771

Proved oil reserves, mln barrels

1,381

Proved gas reserves, bcm

66.3

 

Probable hydrocarbon reserves, mln boe

1,914

Probable oil reserves, mln barrels

1,473

Probable gas reserves, bcm

74.9

 

Possible hydrocarbon reserves, mln boe

8.77

Possible oil reserves, mln barrels

741

Possible gas reserves, bcm

23.1

 

Vankorneft’s operating highlights

 

2004

2005

2006

2007

2008

2009

Exploration drilling, thousand m

8.6

17.0

10.9

8.9

4.1

2.9

2D seismic, linear km

0

400

350

0

0

0

3D seismic, square km

170

200

0

0

0

0

Production drilling, thousand m

 

 

18

78

142

277

 


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