Crude
oil production by LUKOIL Group (including share of production by equity
affiliates) in 2007 totalled 96.645 million tones (1.953 million barrels per
day), of which 94.147 million tonnes were produced by Company subsidiaries. The
Company’s average daily crude production level rose by 1.4% compared with
2006.
LUKOIL
Group Oil Production by Regions, million tonnes
|
|
2004
|
2005
|
2006
|
2007
|
|
Total |
86.200 |
90.158 |
95.235 |
96.645 |
|
Russia |
82.720 |
86.277 |
89.561 |
91.100 |
|
Western
Siberia |
56.351 |
58.469 |
59.764 |
59.917 |
|
Urals |
10.082 |
10.307 |
10.923 |
11.257 |
|
Volga
|
3.175 |
3.210 |
3.214 |
3.240 |
|
Timan-Pechora |
11.732 |
12.476 |
13.601 |
14.576 |
|
Other |
1.380 |
1.815 |
2.059 |
2.110 |
|
International |
3.480 |
3.881 |
5.674 |
5.545 |
The
Company worked hard in 2007 to prepare and launch production at fields in
Russia and abroad as part of its
strategy of accelerated production growth. Special emphasis was placed on fields
in Timan-Pechora and the Northern
Caspian.
Company
subsidiaries and equity affiliates produced crude oil at 361 fields during 2007,
and 12 new oil fields were put under development: the Tsentralno-Stanovoye field
(Volga region), the Chekaldinskoye and Vladimirskoye fields (Tatarstan), the
Mokhovskoye, Dozortsevskoye, Sypovskoye and Lesnoye fields (Urals region), the
Verkhnee-Volminskoye, Oshskoye, and Osvanyurskoye fields (Timan-Pechora), the
Domnovskoye field (Kaliningrad Region), East Kumkol (Kazakhstan), and one gas
field — the Khauzak field (Uzbekistan).
Work
continued in 2007 to improve efficiency of field development and reduce
operating expenses as part of LUKOIL’s program for optimization of development
and production of oil in the period of 2006–2008. LUKOIL production companies
took systematic measures in 2007 for increase of well productivity and oil
recovery rates in order to achieve oil production targets. Development costs
totalled $6,660 million.
The
Company had 28,470 production wells at the end of 2007, of which 24,100 were
actually in use. The number of injection wells was 9,060, of which 6,660 were
under pressure. The number of production wells increased by 2.3% compared with
2006 due to increase in volumes of drilling. The share of wells that were out of
use had reduced marginally by the end of 2007 compared with the end of 2006, and
stood at 15.3% of all production wells.
Total
production drilling in 2007 was 2.968 million meters, which is 27% more than in
2006. There was an increase in the share of international projects in total
production drilling, which reflected intensive field development work as part of
projects, in which Caspian Investments Resources Ltd. was a participant. A total
of 1,193 new production wells were commissioned, including 109 horizontal wells.
Average daily flow at new wells was 37.8 tonnes, including 65.5 tonnes from
horizontal wells. Total production from new wells (Group share) was 5.47 million
tonnes. Drilling of horizontal wells has been found to be highly efficient and
the Company plans to increase their numbers in the medium
term.
Russia
Crude
oil production by LUKOIL Group in Russia in 2007 was 91.100 million
tonnes, including 90.735 million tonnes produced by subsidiaries. Russian
production was 1.7% higher than in 2006.
Subsidiaries
and equity affiliates of the Company produced oil at 337 fields in
Russia during 2007. Production
drilling was 2.641 million meters, which is 24.5% more than in 2006. The number
of Company production wells in Russia at the end of 2007 was 27,450,
of which 23,240 were actually in use. 981 new wells were commissioned during
2007 and production at new wells totalled 5.05 million
tonnes.
International
Projects
LUKOIL’s
share of production in international projects was 5.545 million tonnes in 2007,
which is 2.3% less than in 2006. The volume reduction was due to completion of
the transaction for sale of a 50% stake in Caspian Investments Resources Ltd.
Daily oil production by Caspian Investments Resources Ltd. at the time of the
sale (based on its share in projects) was about 46,000 barrels. So the sale
reduced daily output of crude oil by LUKOIL Group by 23,000 barrels. However,
organic production growth in international projects was 9.8%, which almost
completely compensated shrinkage of production due to the sale of Caspian
Investments Resources Ltd. Most of the organic growth was from the
KarakudukMunai, Karachaganak and North Buzachi
projects.
Production
drilling in the Company’s international projects was 327,000 meters, which
is 49% more than in 2006. The large growth of production drilling in 2007
reflects intensive field development as part of projects involving Caspian
Investments Resour