RN-Yuganskneftegaz increased production by 2% in 2016

RN-Yuganskneftegaz,   Rosneft subsidiary, increased oil production by 2% in 2016 compared to the same period  of 2015 (62.4 mln t) - up to 63.6 mln t. Cumulative oil production of the company  exceeded 2.2 bln t.

The positive trend in operating results was ensured by   implementation of a range of geological and engineering activities, using of advanced technologies and successful introduction of new projects.

Development of the new reserves is being carried out by drilling   horizontal wells with multistage hydraulic fracking. In 2016 RN-Yuganskneftegaz as part of a drilling programme has boosted the pace of the new wells construction. By the end of the year the number of commissioned wells has grown by 59.4% compared to 2015 and amounted to 1436 wells, the volume of completed fracking operations has increased by 40% over this period. The short-range plan is to perform 20-stage fracking at 1,500 m depth using import-substituting technologies.

In 2016, Yuganskneftegaz  acquired the right to use subsurface resources of Surgut 5 license area for the geological studying, exploration and production of hydrocarbons as part of activities to replace industrial hydrocarbon reserves and to provide sustainable production growth in the medium and long term.

The enterprise successfully implements the programme for increase of the associated gas beneficial use   and has reached the level of 89.2 % by the end of 2016.

Rosneft Information Division
February 2, 2017