Production of Udmurtneft – A Joint Venture Between Rosneft and Chinese Sinopec – Reached 320 Million Tons of Oil

Udmurtneft, a joint venture between Rosneft and the Chinese Petrochemical Corporation Sinopec, has produced the 320-millionth tonne of oil since the field began operating in 1969.

Udmurtneft became not only the largest oil producing company in the territory of Udmurtia, but also the first example of successful international cooperation between Russia and China in the field of oil production. The annual production volume of the enterprise is about 6 million tons of oil, or 60% of the region’s oil production. Over the years of efficient operation of the joint venture since 2006, more than 96 million tons of oil have been produced and more than 1.2 thousand new wells have been drilled, while the volume of production drilling has increased 6.3 times. During this period, Udmurtneft started developing 10 new fields. The total increase in recoverable reserves amounted to about 110 million tons of oil.

Today, Udmurtneft is developing 33 fields located in 14 districts of the Udmurt Republic. The mining fund has about 3.8 thousand wells. In 2021, development drilling exceeded 180 thousand meters, 96 new wells were put into operation.

The enterprise successfully maintains a stable level of production at mature fields through the implementation of geological and technical measures (GTM). In 2021, more than 900 well interventions were carried out, among the most effective were hydraulic fracturing and additional perforation. Good results have been achieved at the Chutyrskoye, Kotovskoye, Elnikovskoye, Ludoshurskoye, Kiengopskoye and Listvenskoye fields.

As part of the joint venture, new highly efficient methods for extracting Udmurt oil, which has unique characteristics, are being tested. For 15 years, the company has conducted more than 110 pilot tests of new technologies, more than 60 technologies have been introduced into production. The economic effect from the implementation of the program to improve production efficiency over the past two years amounted to more than 480 million rubles. Among the latest successfully implemented technologies are magnetic inductors for oil treatment, a pump for marginal wells, protective coatings of tubing against corrosion. 

The priority areas for the development of the enterprise are digitalization and automation of production. About 60% of oil preparation and transportation facilities, almost 70% of production wells have been automated, digital models of 24 fields have been created.

The enterprise conducts systematic work to preserve the ecology of the region and actively supports republican initiatives. In 2021, Udmurtneft released more than 25,000 pike, sterlet and carp fry into the Kama River. Employees supported the All-Russian environmental clean-up campaign “Green Spring” and the “Save the Forest” campaign. The enterprise acted as a partner of the Izhevsk Springs project, within the framework of which water quality studies were carried out in six city sources.

Udmurtneft is the largest taxpayer, employer and investor in Udmurtia. The enterprise contributes to strengthening the social infrastructure of the region and improving the quality of life of the population.