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Currently, the Company is producing about 41,000 barrels and refining about 77,000 barrels per day. Due to strong demand for oil products, the downstream volume target has been revised from 23 mbbl to 25 mbbl in 2011. The Kolvinskoye oil field is scheduled to be on production in the beginning of September.
For the first six months of 2011, the Company’s oil production amounted to 8.0 mbbl (44,000 bpd) and refining volumes at the Khabarovsk refinery preliminarily totalled 13.1 mbbl (64,000 bpd).
Oil production in the Volga-Urals region and Kazakhstan totaled 2.0 mbbl in the second quarter of 2011 compared to 2.0 mbbl in the second quarter of 2010. Oil production in the Timano-Pechora region totaled 1.1 mbbl in the second quarter of 2011 compared to 1.1 mbbl in the second quarter of 2010. Oil production in the Tomsk region totaled 0.8 mbbl in the second quarter of 2011 compared to 0.7 mbbl in the second quarter of 2010.
In the upstream segment, 18 new wells were drilled in the second quarter of 2011. To date, 17 production wells have been drilled at the Kolvinskoye oil field. Preparations are being finalised for launching the Kolvinskoye field and marketing oil through the Transneft-pipeline system. The 146 kilometer pipeline from the Kolvinskoe field to the Kharyaga terminal has been completed. Oil preparation and transfer unit construction works are anticipated to be completed by the end of August. The field is scheduled to be on production in early September 2011 with 22,000 barrels of oil per day.
In the downstream segment, demand for oil products continued to increase and capacity utilization at the Khabarovsk refinery remained high. Accordingly, the downstream volume target has been increased from 23 mbbl to 25 mbbl in 2011.
“The price of oil stabilized in the second quarter and upstream segment economics improved further. Oil product demand traditionally strengthened. We are raising our downstream volume target and look forward to the timely launch of the Kolvinskoye field which is expected to be a significant driver of oil production growth going forward”, says Arsen Idrisov, Managing Director of Alliance Oil Company.