Oil and Gas Exploration and Production

Total production by Gazprom Neft increased by 6.41% in 2014, to 66.25 million TOE. The rise in production volumes was achieved through the acquisition of new production assets in 2011–2012 (Gazprom Neft Orenburg, High Technology Centre, Yuzhuralgaz, and Zhivoy Istok), through highly effective well interventions in West Siberian fields, and through increasing the ownership share in SeverEnergia.

Gazprom Neft is the only oil company in Russia which has been able to increase production volumes at mature fields in Western Siberia. Production increased in 2014 due to the implementation of a high-tech oil and gas reservoir development programme (Gazprom Neft-Noyabrskneftegas, Gazprom Neft-Khantos) and the commencement of the development of 15 million tonnes of hard-to-recover reserves.

In 2014, the Company consolidated its position in the Russian northern seas to the north of the Yamalo-Nenets Autonomous District. In April, a new grade of oil, ARCO, was shipped from the Prirazlomnoye field, Russia's first drilling project on the Arctic shelf. An exploratory well was drilled in the Dolginskoye field, located on the Arctic shelf of the Pechora Sea. A study of the well has also been completed. This is the first time such a considerable amount of work has been completed during the short ice-free season, and it sets a record for the industry. Preparations continue for the commercial development of the major fields to the north of the Yamalo-Nenets Autonomous District: the Messoyakha group and Novoportovskoye. The first season of shipping oil by sea from the Novoportovskoye field is complete.

In January 2015, Gazprom Neft obtained its first shale oil inflows at the South Priobskoye field in the Khanty-Mansiysk Autonomous District — Yugra. The Company began commercial shipments of oil at the Badra field in Iraq, and delivered against its commitments to the Government of Iraq to produce no less than 15,000 barrels per day for 90 days.

The Company is actively developing its gas operations based on the commercialization of its reserves of associated and natural gas extracted from oil fields, and increasing the value of this gas. Total gas production/utilization by the Gazprom Neft Group in 2014 (including share in production by joint ventures) was 17.68 billion m3. The overall level of APG utilization (including by joint ventures) amounted to 81.4% in 2014, compared with 79.9% in 2013.

Hydrocarbon production, million TOE

66.25 million TOE
hydrocarbon production by Gazprom Neft Group in 2014