RusEnergy

05.16.2005 (17:58) - RZD News - JSC Sibneft recorded revenue of 49.802 billion rubles for the first quarter of 2005 from 37.71 billion rubles, net income lowered 19 percent to reach 7.516 billion rubles from 9.282 billion rubles. Sibneft is a vertically integrated oil company, building businesses in petroleum exploration, production, refining, and marketing. Sibneft has proved reserves in excess of 4.5 billion barrels of oil, which ranks the company among the top twenty private oil companies globally. The company and its producing subsidiaries hold about 45 oilfield exploration and development licenses in the Yamal-Nenets and Khanti-Mansiisk autonomous regions (in the West Siberian petroleum basin), as well as in the Omsk and Tomsk regions and in Chukotka. About 80% of Sibneft's total SPE reserves are concentrated in the Noyabrsk area, including 50% found in the five largest fields held by Sibneft-Noyabrskneftegas - Sugmutskoye, Sutorminskoye, Vyngapurovskoye, Sporyshevskoye and Muravlenkovskoye. The Priobskoye oilfield is among Sibneft's most promising fields, and its development license is held by the Sibneft-Yugra subsidiary. Priobskoye currently boasts proved reserves of more than 200 million barrels; however the field's probable and possible reserves are the highest in the company. Sibneft completed 3D seismic exploration of the field in 2003 and, in 2004, began active development of the deposit. The reserves life for Sibneft fields in the year 2003 was 23 years for proved reserves and 41 for total reserves. Sibneft believes that the optimum range for reserve life should be of at least 12 to 15 years based on proved reserves. At present, Sibneft produces associated gas together with crude oil at its fields in the Noyabrsk area. Over 90% of associated gas produced by Sibneft-Noyabrskneftegas is either sold to petrochemicals company Sibur or used by Sibneft for its own requirements. In 2003, Sibneft began full natural gas production at the Zapadno-Ozyornoye field in Chukotka. Beginning in 2005, gas from the field will be utilized to fuel a thermoelectric power station in the regional capital, Anadyr. Under favorable market conditions, natural gas could become an important source of manufacturing growth and additional revenue for Sibneft, reports AK&M.