Six-fold increase in investments

Last year its Tomsk subsidiaries, “Sobolinoye” Group and ZAO “Tomskaya Neft”,  ramped up production of 100 thousand tons of oil, approaching the long-coveted milestone of 300 thousand tons of oil (although, didn’t endure a little to the schedule). And this year “RussNeft” is going to produce in the Tomsk Region almost three times as much. By drilling additional wells and application of stimulation method it’s planned to produce 783 thousand tons of oil.
Recovery of production in the region occurs due to the increase of the investments and strengthening of the resource base. In the execution of the last year’s program the company has invested 403 million Rubles ($ 50 million more than it was planned). This year investment volume will make 2,4 billion Rubles, that is 6 times higher than the same indicator in 2010. No other oil company in the region declares six-fold increase in investments.
Last year the volume of investments of the Company didn’t stand out (2 % of the total level of investments). Now, if business plan of the Company is fortified by real progress, it will take the fifth place in the region by these indexes being inferior only to “Tomskneft”, “Vostokgazprom”, “Gazpromneft-Vostok” and “Imperial Energy”. And thus it will be among the leading Tomsk subsoil users. This correlates well with the general plans of the Company.
As it became known, this year “RussNeft” is going to invest 18 billion Rubles in drilling of wells, in capital construction and gas program. More than half of this amount (about 10 billion) will be sent directly to the extension of the operating well stock. That said, in 2011 the Company is going to reach extent of production in the amount of 13,6 million tons of oil. Almost half of this oil will be produced in Tyumen – in the oilfields of KhMAO (6,8 million tons of oil and 1,3 billion cubic meters of natural gas).
The management of the Company sets the problem: in two years to reach the figures of the prior to the crisis period. It is determined by the peculiarities of oil industry with major creditors – “Sberbank” and trader «Glencore International AG». To meet its financial obligations, the Company should annually increase oil production by no less than 1 million tons. To strengthen the resource base “RussNeft” develops contacts with foreign countries (Mauritania, Azerbaijan, Kazakhstan). But the prospects of this collaboration will determine the results of geological exploration.
Besides, earlier this year there was reported that “RussNeft” agreed to amend the conditions of loan agreements with the partners. The repayment date of the Company was stretched out until 2020, and rate of interest lowered to 9 per cent. The load reduction will allow “RussNeft” to send the released funds  ($ 200 million per year) for the implementation of the  ongoing and new investment projects. This will allow the Company to increase production of raw materials  - as early as next year it intends to produce nearly 15 million tons of oil.
A special place in this program is given to the subsidiary enterprises located in our region.