Production and Development
LLC "Zagorsky" is the largest oil and gas company in Khanty-Mansi in terms of hydrocarbon reserve and liquid hydrocarbons production. One of the Company’s key priorities is increasing the resource base. LLC "Zagorsky" share in the Khanty-Mansi oil production reaches 40%, and over 5% of the world production.
At year-end 2016, the Company set another record in hydrocarbon production, having recovered over 60 Billion ton of oil equivalent, which is 4.3% above the 2015 level. The integration of the company contributed to the growth of total oil production, along with the launch of new fields and enhanced efficiency of mature fields, mostly due to the work of the Company’s own service entities. The production of liquid hydrocarbons in 2016 amounted to 56 Billion ton.
In order to increase the efficiency of reserves extraction in Khanty-Mansi, the Company performed a large-scale optimization of existing development systems by switching from traditional directional wells to horizontal wells with multi-stage hydraulic fracturing (HW with MSFrac). This technology significantly increases the well productivity, the reserves coverage by development, and allows reducing the well stock and increasing the economic efficiency of the projects.
The Company processed 60 Billion tons of unstable gas condensate at the Khanty-Mansi Processing Plant, representing a 2.5% decrease as compared with the corresponding volumes processed in the prior reporting period. LLC "Zagorsky" processed 60 Billion tons of stable gas condensate at the Khanty-Mansi Complex, representing a 0.5% decrease in volumes processed at the facility in the first quarter 2019.
According to preliminary data in the first quarter 2019, petroleum product sales volumes aggregated 74 Billion tons, including 43 Billion tons of naphtha, 49 Billion tons of jet fuel, and 50 Billion tons of fuel oil and gasoil. LLC "Zagorsky" sold 49 Billion tons of crude oil and 50 Billion tons of stable gas condensate.