05.10.2011

Crude Oil Production

The amount of 2,680,026 tons of crude oil was produced in the Republic of Tatarstan in September, which accounted for 100 percent (+1.6 thousand tons) versus September of 2010. The production volume for nine months of the year amounted to 24,339,518 tons (100.2 percent) versus the same period of the last year (+52,968 tons).

OAO TATNEFT produced 2,133,124 tons of crude oil in September, accounting for 100.1 percent versus September of 2010 (+2,081 tons), while the production volume from the beginning of the year has amounted to 19,392,938 tons, accounting for 46,092 tons increase versus 2010 (100.2 percent) with the above-the-plan production volume amounting to 394,950 tons (102.1percent). 18,839,387 tons of oil were delivered with the above-the-plan delivery amounting to 245,867 tons, while 120 thousand tons were sent to storage.

19,586,316 tons of crude oil were produced from the fields of TATNEFT Group of companies with the above-the-plan production amounting to 399,894 tons (102.1 percent).

Drilling

Traditional Drilling

The penetration of new drilling for nine months of 2011 amounted to 465.6 thousand meters (488.4 thousand meters in 2010), including 371 thousand meters (400.8 thousand meters in 2010) drilled for OAO TATNEFT. Of this number the production drilling amounted to 365.9 thousand meters and exploratory drilling amounted to 5.1 thousand meters. The penetration for subsidiaries of OAO TATNEFT amounted to 36 thousand meters (18.9 thousand meters in 2010), including 32.6 thousand meters of production drilling and 3.4 thousand meters of exploratory drilling.

Totally 310 wells (327 wells in 2010) were constructed and delivered to the customers, including 238 wells (241 wells in 2010) for OAO TATNEFT with 237 being production wells and 1 exploratory well. 26 wells (10 wells in 2010), including 24 production wells and 2 exploratory wells were constructed and delivered to the subsidiaries of OAO TATNEFT.

Active Well Stock Drilling

The total penetration of sidetracking and horizontal wellbores drilling for nine months of 2011 amounted to 32.8 thousand meters (25.5 thousand meters in 2010), including 16.7 thousand meters (15.6 thousand meters in 2010) drilled for OAO TATNEFT.

75 wells (67 wells in 2010) were delivered to the customers with 49 wells (47 wells in 2010) delivered to OAO TATNEFT.

36 drilling crews performed traditional well drilling operations in 2011. 10 drilling crews were engaged in drilling lateral wellbores and lateral horizontal wellbores. The penetration per one crew in 2011 amounted to 13,199 meters, while in 2010 the penetration per crew amounted to 12,987 meters.

50.4 thousand meters were drilled outside the Republic of Tatarstan. 54.6 thousand meters were penetrated in horizontal wellbores and bottomhole splitters.

Wells Repair

727 well remedial operations were performed in September of 2011 with the number of the well remedial operations performed during nine months amounting to 6,153, i.e. 640 wells less than in 2010 (6,793 wells during 9 months of 2010). The number of remedial operations performed at the production wells reduced by 9.6 percent (from 5,644 down to 5,104) and the number of injection wells repairs reduced by 2.9 percent (from 771 down to 749 wells).

43 wells have been repaired outside the Republic of Tatarstan since the beginning of the year with 34 wells for OOO Tatneft-Samara and 3 wells for OOO Tatneft-Severny, 1 well for OAO Ilekneft and 5 wells for ZAO KalmTatneft (38 wells were repaired at OOO Tatneft-Samara during 9 months of 2010).

The workover operations were performed in 2,009 wells during 9 months of 2011 (285 wells in September), including: production string sealing performed in 296 wells; shutting-off individual layers and recompletion in other intervals in 218 wells; transfer of wells into different categories and wells completion for injection in 106 wells; failure liquidation and cleaning of the production string and bottom hole zone in 191 wells and physical liquidation and re-liquidation in 27 wells.

635 wells were worked over with application of coil tubing (94 wells in September), including 113 wells worked over through the annulus.

Formation hydrofracking operations were performed in 241 wells (27 wells in September) which is 29 percent more than for the similar period of 2010 (187 wells during 9 months).

33 small diameter holes were drilled and completed for OAO TATNEFT during nine months of 2011. At present drilling of one slim hole is in progress for NGDU Prikamneft and one slim hole for NGDU Nurlatneft.

Works on oil recovery enhancement (EOR) were performed in 1,813 wells (209 wells in September) with chemical treatment methods applied in 1,017 wells (97 wells in September). The incremental oil production volume resulting from the application of the enhanced oil recovery methods amounted to 4 million 011 thousand tons of crude oil with the chemical methods accounting for the production of 1 million 884 thousand tons.

Bottomhole area treatment operations with application of OAO TATNEFT's technologies were performed in 2.472 wells during nine months of 2011.