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Russneft plans to increase oil production

7 November 2016 18:08 (UTC+04:00)
Russneft plans to increase oil production

By Nigar Abbasova

Russneft Company, one of the largest producers of oil products in Russia, intends to increase the volume of oil extraction from its projects, including those implemented in Azerbaijan.

The production growth is envisaged in the development strategy of the company for 2017-2019. The increase is expected to be achieved through implementation of large-scale programs on production drilling, well interventions, active use of innovative production methods and stimulation of reservoir recovery.

Three-year strategy will also increase the attractiveness of the company for foreign investors. Head of Russneft, Mikhail Gutseriev told Izvestia that the pivot of the strategy is increase of oil extraction by 40 percent till 2019, mentioning that it is planned to raise production from 7 up to 10 million tons.

The strategy will be focused on hardly-recoverable oil reserves and shale oil. The company also places emphasis on the potential of output increase in Azerbaijan.

Proven oil reserves of Azerbaijan amounted to 7 billion barrels at the end of 2015, according to BP's Statistical Review.

The country exported some 17,973 million tons of oil in the first half of 2016, which is by 1.4 percent higher than the index fixed in 2015.

The energy reach country earlier pledged not to increase output and export of oil. The volume of oil production is expected to stand at 0.9 million barrels per day in the first quarter of 2017 and 0.8 million barrels per day in the second, third and fourth quarters of 2017 each, according to OPEC.

Russneft owns a share in a number of off-shore producer companies, including Absheron Operating Company Limited (which develops Zikh-Govsani field ), Karasu Operating Company (which engages in exploration and development of the Mishovdagh and Kalamaddin oil fields), Kura Valey Operating Company (Padar block), Neftchala Investment Limited ( Neftchala, Khilli, Durovdag-Babazanan block of fields), Shirvan Operating Company (Kurovdag field).

RussNeft ranks the 10 th for the production output among the oil companies in Russia. Being headquartered in Moscow, RussNeft Group of Companies includes 45 producing companies and operates in 16 regions of Russia, CIS countries.

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

Follow us on Twitter @AzerNewsAz

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