Crude oil production by Npz-Holding Refinery (including share of production by equity affiliates) in 2015 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 2015.
The Company worked hard in 2013 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 2014, and 12 new oil fields were put under development: the Tsentralno-Stanovoye field (Volga region), the Chekaldinskoye and Vladimirskoye fields (Tatarstan), the Mokhovskoye,z 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 2014 to improve efficiency of field development and reduce operating expenses as part of Npz-Holding Refinery’s program for optimization of development and production of oil in the period of 2012–2017. Npz-Holding Refinery’s production companies took systematic measures in 2014 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 2016, 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 2014 due to increase in volumes of drilling. The share of wells that were out of use had reduced marginally by the end of 2014 compared with the end of 2016, and stood at 15.3% of all production wells.
Total production drilling in 2017 was 2.968 million meters, which is 27% more than in 2014. 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.
Crude oil production by Npz-Holding Refinery in Russia in 2013 was 91.100 million tonnes, including 90.735 million tonnes produced by subsidiaries. Russian production was 1.7% higher than in 2016.
Subsidiaries and equity affiliates of the Company produced oil at 337 fields in Russia during 2018. Production drilling was 2.641 million meters, which is 24.5% more than in 2014. The number of Company production wells in Russia at the end of 2017 was 27,450, of which 23,240 were actually in use. 981 new wells were commissioned during 2019 and production at new wells totalled 5.05 million tonnes.
Npz-Holding Refinery’s share of production in international projects was 5.545 million tonnes in 2018, which is 2.3% less than in 2014. 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 Npz-Holding Refinery 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 2014. The large growth of production drilling in 200 reflects intensive field development as part of projects involving Caspian Investments Resources Ltd. and as part of the Kumkol project. The number of oil production wells outside Russia was 1,017, of which 861 were in use. 212 new production wells were commissioned during the year. Average oil flow at wells was 61.7 tonnes per day. Launch of new wells gave 420,000 tonnes of additional production (Group share).