Production of Liquid Hydrocarbons

Rosneft’s hydrocarbon production volumes in 2017 grew 6.2% year-on-year to 281.7 mmtoe (5.72 mmboe per day).

In 2017, the Company produced 225.5 mmt of liquid hydrocarbons (4.58 mmboe per day), an average daily production increase of 7.6%. Whether excluding Bashneft’s operating results or including them as from January 2016, the Company demonstrated strong production growth in 2017 despite the external limitations applied in October 2016.

In 2017, the Company set new record highs in drilling and well workover activities. Production and exploration drilling grew 29.5% and 72% respectively year-on-year, and total drilling reached a record high of over 12.4 mln m. The Company set a sidetracking record for the third consecutive year in 2017, the previous record being surpassed by 10% and totaling now almost 1.3 thousand of completed sidetracks. The share of in-house drilling crews within the Company’s total drilling footage remained steady at around 60%.

At the end of 2016, the Russian Federation entered a production cut deal with OPEC countries and a number of major independent oil producing states. To ensure Russia’s compliance with the deal, Rosneft has cut its output proportional to its share of total Russian production. The reduced production has caused many assets to perform below potential, although production cuts do not extend launch timelines scheduled for new assets.

KEY ACHIEVEMENTS

In 2017, Rosneft’s average daily liquid hydrocarbons production grew by 7.6% year-on-year.

An absolute record was set in production drilling, which exceeded 12 mln m.

The number of new wells brought into operation increased by 28% to 3.4 thousand of wells. The share of horizontal wells brought into operation within a year grew to 36%, and the number of new horizontal wells drilled using multi-stage hydraulic fracturing (MSHF) grew by 67% year-on-year.

4.5% accelerated growth in oil production by RN-Yuganskneftegaz – over 66.5 mmt in incremental production as a result of using advanced well drilling and completion technologies, as well as enhanced oil recovery techniques.

Daily production was increased at RN-Nyaganneftegaz (by 1.6%), Varyoganneftegaz (by 0.7%), and Samaraneftegaz (by 1.4%).

Investment incentives for the Samotlorskoye field in the form of annual MET reductions of RUB 35 bln over 10 years enabled the Company to reaffirm its commitment to drill more than 2.4 thousand of wells in 2018–2027, which are projected to contribute over 50 mmt in incremental production.

The Company launched commercial production at three Uvat project fields: the Severo-Tyamkinskoye field, the Severo-Tamarginskoye field, and the Kosukhinskoye field. As at 1 January 2018, the fields’ combined АВ1С1+В2С2 reserves totaled approximately 54 mmt of oil.

Active development of major projects: Suzun and Messoyakhaneftegaz. The Company’s production share in 2017 stood at 5.7 mmt of oil. Production drilling was continued, and Phase 2 of the oil treatment unit at the Suzunskoye field is nearing completion; expansion of the central production facility’s oil treatment capacity at the East Messoyakha field is underway.

Production started at several major development projects: the start-up complex at the Erginsky cluster was commissioned. Comprehensive technological testing of the oil treatment unit (OTU‑1) commenced at the Yurubcheno-Tokhomskoye field.

Oil, Gas Condensate, and Liquid Hydrocarbons Production, mmt
Commissioning of New Wells by Type, wells
Incremental Production from New Wells and Well Interventions, mmt
Commissioning of New Wells by Type, wells
Production drilling, thsd meters
Existing Well Stock, wells