RussNeft Plans to Increase Oil Output to 20 Million Tons in 2006.

In the current year RussNeft has acquired such producing assets as Aganneftegazgeologia OAO, which was a stake of Yukos in a joint venture with Hungarian MOL, Tomskaya Neft ZAO and Udmurt Oil Company. RussNeft has applied for acquiring Orsknefteorgsynthez and Saratovneftegaz as TNK-BP is considering selling them out. The Federal Antimonopoly Service has already granted both requests submitted by RussNeft.
RussNeft also intends to participate in the auctions held by RF Natural Resources Ministry to get the right of subsoil user.
According to the results of last year, RussNeft reached 10 million ton level of oil output. The Memorandum says that in 2005 the scope of drilling including wells at the new oilfields bought by the company has been kept at the 2004 level and is estimated as 130 wells. At the same time the company is going to conduct supplementary exploration within already allotted license plots in order to specify and increase hydrocarbon reserves. Annual oil output can be raised to 25 million tons by 2007 without any new acquisitions.
RussNeft is one of the ten first-rate oil companies of Russia. It structures 29 producing assets, as well as refining and transporting entities. The company also owns a retail network of petrol stations in 15 regions of Russia and CIS. Russneft’s proved reserves exceed 537 million tons of crude oil including the producing asset of Udmurt Oil Company OAO bought in the third quarter of 2005. In the current year RussNeft has already produced 14.5 million tons. Receipts of the company have jumped to 36,457 billion rubles from 7,365 billions in 2003 and its net profit to 3,51 billion rubles from 807 millions.
39.8% and 49% stakes of three producing companies of RussNeft (Varieganneft, Ulaynovskneft and Nafta-Ulaynovsk) are possessed by international stock trader Glencore.