LUKOIL’s gas program is focused on accelerated growth of gas
production both in Russia and abroad and increase in the share of gas to a third
of total hydrocarbon production by the Group. The main aim of this strategy is
to commercialize gas reserves and reduce the Company’s exposure to major price
volatility on the international oil market.
Total gas production by LUKOIL Group in 2011 (including the share
of production by equity affiliates) rose by 3.3% to 22.023 billion cubic meters.
Output of marketable gas (net of own use, reinjection into reservoir formations
and transport losses) rose by 0.4% to 18.621 billion cubic meters (300,000 boe
per day), including increase of output by 1.2% in Russia and reduction of output
by 1.9% in other countries. Company revenue from sales of natural gas was $327
million in 2011, which is 4.8% more than in 2010, due to increase of demand and
of prices for hydrocarbons.
The Company had 404 gas production wells at the end of 2011, of
which 296 were in use.
Output of natural gas increased by 1% in 2011 to a level of
14,082 million cubic meters, including 12,761 million cubic meters of marketable
gas, production of which was almost unchanged from the previous
year.
Production of associated gas grew by 7.4% to 7,941 million cubic
meters, including 5,860 million cubic meters of marketable associated gas,
production of which increased by 1.3%.
Russia
Production of marketable gas in Russia in 2011 was 13,795 million
cubic meters, which is 1.2% more than in 2010. The Company had 297 gas
production wells in Russia at the end of 2011, of which 215 were actually in
use.
Most of the Company’s natural gas production in 2011 in Russia
(more than 90%) came from the Nakhodkinskoye field in the Bolshekhetskaya
Depression. Gas production there in 2011 was 8.3 billion cubic meters,
representing a slight increase in comparison with 2010.
International Projects
Production of marketable gas as part of international projects
decreased by 1.9% in 2011 to 4.826 million cubic meters. The share of natural
gas was 86%, almost unchanged from the previous year. The Company had 107 gas
production wells in international projects at the end of 2011, of which 81 were
actually in use.
Most of marketable gas production outside Russia (54%) was at the
Khauzak-Shady area, which was brought into production at the end of 2007 and is
being developed as part of the Kandym –
Khauzak – Shady project in Uzbekistan. Production of marketable gas at the
Khauzak-Shady area was 2.63 billion cubic meters in 2011, which is almost
unchanged from 2010.
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