Ulyanovskneft, OAO. The company sticks to the strategy of increasing production of ‘black gold’

The company has begun year 2007 having launched into operation a new perspective well. This confirms that Ulyanovskneft accurately sticks to the strategy that has been worked out, namely increasing ‘black gold’ production.

Viktor Kurochkin, OAO Ulyanovskneft General director:

- It has been a good beginning of the year. A new well has been drilled and has been operating successfully at the Maiskoye field, a complete study of which has not been yet accomplished. However, even now positive perspectives of its development may be seen.

Moreover, drilling of another two producing directional wells at the Zapadnoye field is scheduled for November. Currently the exploration well #22 is being drilled at Severo-Zimnitskoye field. Core recovery on the upper horizons – vereisk and bashkirsk – says their industrial hydrocarbon saturation is quite probable. The Zimnitskoye and Severo-Zimnitskoye fields are perspective due to their oil stock.

Thus, the oil is heavy and viscous there; it also contains lots of foreign bodies, including mineral impurities. Its extraction requires new technologies. For instance, live steam may be delivered into a well. Clearly this will involve formidable investment; equipment is quite expensive.

Drilling of new wells, dynamic exploration and development of new fields is being performed as part of plan involving not only maintenance of the current level of oil production but also its increase. This is our strategy.

New technologies are introduced to decrease costs of production.

Ulyanovsk oil is considered to be heavy; the percentage of mechanical impurities, namely sulphur and paraffin, is high. It is not easy to recover it; that is why costs of production of ‘black oil’ are high. The only way to decrease them is to introduce new technologies.

We systematically perform the whole complex of works, - says OAO Ulyanovskneft chief engineer Andrey Danilin. – A key innovation is in crude primary treatment. The oil we recover contains large quantities of water. Sometimes is reaches the point of 50-90 %! Before, we had to take water rich oil from the well to the location where it is treated for the following delivery. This way was economically unsound. Moreover, the ballast (water) should be blown off somewhere. We currently dehydrate crude oil at the site. We therefore not only save on transportation charges but also solve the ecological issue. By the way, while transporting and injecting this water into the reservoir we also perform new technologies. We replace metal pipes with glass-fibre-reinforced plastic ones. The water extracted from the oil is highly mineralized. That means its quality is similar to that of weak acid. That is why metal pipes often broke. We have been eradicating this problem gradually.

Furthermore, the second duplicating network to Druzhba oil pipeline has been made. Now ‘black gold’ delivery to the oil-trunk pipeline is not stopped during the time of repairs. For crude produced at the Ulyanovsk region reaches the norms set then is pumped into Druzhba and is transported further on to the West.

To eradicate spills completely, improve ecology and preserve environmental purity, a new system of hermetic charge, discharge and oil calculation has been launched. This year the construction of a vapor recovery unit is being launched at the oil treatment plant Severnaya. All the tanks emissions will be collected! Much money is saved by the oil pipeline of oil treatment plant Yuzhnaya - crude oil delivery and acceptance point Klin constructed in 2004 11.2 km long. Now market oil is delivered via oil pipeline to the oil custody transfer. Previously automobile transportation has performed this function. Oil carriers overcame a 13 km distance. At this the company does not pollute the environment and saves on transportation.

- As for production,
Andrey R. continues, - the company purchased two new electro-screw pumps. They are meant specifically for high viscosity oil. These pumps functioning is really economic and allows to get substantial debit increase of problem (due to viscosity) wells.

The company pays special attention to environmental safety. Geological prospecting expedition and Center of laboratory analysis and engineering measurements under Russian Federal Service for Ecological, Technical and Atomic Supervision RosTekhNadzor. Employees from these bodies constantly do sampling of the air, soil, subsurface and above-ground water.

Boiler houses will be constructed provided oil industry workers money.

Ulyanovskneft is a company, which not only earns well but helps its region as well. This year an agreement with the administration of the Ukyanovsk region and President of RussNeft Mikhail Gutseriev has been signed. Upon this agreement 25 million rubles will be allocated to a welfare program by oil industry workers equipment acquisition for schools, kindergartens and cultural centers of the Novospassk region. The money will also be allocated to acquirement of PCs for village libraries, asphalt covering, construction of a few little boilers for hospitals and education institutions.

Year long free floating.
In February it was a year since Ulyanovskneft dining room had been free floating. In 2006 to optimize work a separate entity Neftyanik was given to the food facilities complex comprising two branches, a hotel, a hostel.

- The staff remained unchanged, - says the general director of the food facilities complex Nadezhda Melnikova. – All the employees – 36 people – have formidable background. I will be explicit, it was hard at first. But we do our best. We work not only for OAO Ulyanovskneft workers but also fro all habitants of the Novospassk region and long distance truckers. Due to our track location. Moreover, e organize wedding ceremonies, celebrations, parties.

Last year the food facilities complex had good results. We renovated the look of the dining room at our own expense. We installed a new entering door, made a sign board. Ulyanovskneft do not forget about ‘its’ dining room as well. This year the company has acquired a stove for pastry for the food facilities complex. Neftyanik baking is really popular. Now the company has an opportunity to increase its production.

- We would not have been able to allocate such amounts of money without Ulyanovskneft boost, of course, - says Nadezhda A. – I would like to thank them for not forgetting us. We do not forget about them either for Ulyanovskneft employees are our key clients. We are pleased to offer them tasty home-made launch. Especially, they like our manty, French fries and stuffed cabbage leaves. So enjoy your meal!

Homely conditions at the working location.
Striving for high production rate it is important not to forget of the people! We in Ulyanovskneft always remember this fundamental truth. Last year the company started building comfortable houses (basememnts) for rotation workers.

A large hostel at the Volodarsk field has been constructed. At the moment 16 people live and work here. Comfortable houses have been constructed for seven people at the Baranovsk, Varvarovsk and Gologyaevskoye fields. Another basement for ten rotation workers has been constructed at the Zapadnoye field. The oil industry workers live in real houses, like with home comfort. Each basement has fully equipped kitchen, bedrooms, drying apparatus, TV, refrigerator – all needed for normal living.

The one who works well spends his time well

For RussNeft and its subsidiary OAO Ulyanovskneft it has become a tradition to hold sports contests. Teams from all holding companies participate in contests. Normally corporation employees have contests in combined events – swimming, shooting, running, futsal, volleyball and catamaran races. Ulyanovskneft team always performs well. For instance, in 2005 our ‘sportspersons’ were the second in all teams classification and won a videocassette recorder. And last year we were the first! The company was awarded with a TV – now all OAO Ulyanovsk-neft employees can watch it; it has been installed at Neftyanik dining room.

The contests normally take place at a summer time recreation center Priboy. It is located at the Beloye lake. The water pond is over 250 thousand years old! The lake is situated 360 meters above the sea level. And this is the highest point of the Ulyanovsk oblast. It was not ithout reason that Russian academician Keller in 1911 reffered to this place as Russian Finland.

Oil industry workers live here in rooms for two. At the basement there is a dining room for 120 seas, a own water facilities from an artesian well, a first-aid post.

But the most important is that at Priboy there are sports grounds, boat station, shooting range and a wonderful beach of over 90 meters. All in all, there are perfect conditions to have unforgettable time from weekdays.

Last year over 200 people had their holiday at Priboy.

Victories company ad gloriam

Speaking of sport, Ulyanovskneft main pride is a football club Neftyanik. Fur years running the team wins championships of the Ulyanovsk oblast in the second group. In 2006 Neftyanik was silver winner of the football championship of the oblast.

- My task was to establish a worthy team, - told head coach of ten team, the director of football club Neftyanik, master of sports of USSR on football, international level coach Avkhat Abdulin. – And this task has been fulfilled. At that, during this time Ulyanovskneft obtained not only a good team but also a perfect stadium. It had to be reconstructed completely. Ten vehicles of soil alone have been delivered. Shower rooms and a dressing room have been constructed at the stadium territory.

In 2007 Neftyanik celebrates its fifth anniversary. Today the football club has a few youngster teams. A worthy reserve is growing! Totally 60 children are involved in the team; they are successful both at regional and all-Russia contests. In 2006 boys from Neftyanik  participated in all-Russia tournament ‘Kozhnii mech’ in Anapa and were the third.

In March in Novospasskiy first took place children’ contest Kozhniy myach. Neftyanik took the lead again! Young football players became silver medalists. They gave way only to the Ulyanovsk team.

Oil industry worker is a mission

New live shall be given periodically to each staff. Otherwise it is not possible to avoid dead season. This rule is observed in Ulyanovskneft. In 2006 students from the Ufa university were in training at the company. All in all 46 young specialists had their study placements here. Some of them stay in Novospasskoye forever.
- I am graduating from Ufa State Oil Technical University,- says Ekaterina Tuguleva. – My branch of study was geology of oil and gas. I came here with my husband. He graduated from the same university three years ago. I have been immediately employed. My husband and I work together; he is the head of our group. Being young specialists the company has given us a furnished flat.

It was unusual to move to a village from a large city. But we are settling down to it. There is no time to be bored – we work. Moreover, it is a promising work. Future plans? I want to have three children. By the way, like my husband I was grown up in an oil industry workers family. My mother is a geologist, my father is a driller, my brother is an engineer. That is why to be a geologist to me is more than work. This is my whole life.

KP information

Currently OAO Ulyanovskneft develops 24 fields in our region. Their stock is 23.5 million tons of oil. Annual production of all Ulyanovskneft fields exceeds 380 thousand tons of ‘black gold’. Recourse base is amounted by geological and exploration works and updating the data on reserves at Volodarskoye and Varvarovskoye fields. Vostochno-Birlinskoye, Zapadnoye, Zimnitskoye fields have perfect potential as well. In 2005 RussNeft got at auction a right of use of Pavlovsk license area; it has good potential and will strengthen the recourse base of Ulyanovsk block companies. Last year dynamic supplementary exploration at new fields. Next year it is planned to start prospect drilling and specification of identified structures at the Pavlovsk area.