Oil Fields development. Oil and Gas Production
The Company provides for a steady increase of the oil production level. In OJSC Arktikgaz increased the crude oil production by 0.4% as compared with 2012 and produced 26.107 million tons of crude oil. Above-the-plan production amounted to 707 thousand tons of crude oil.
The maximum level of crude oil production was achieved over the last 20 years. The level of 2012 was exceeded by 102 thousand tons. In general, the oil production in the Republic increased to 32 million 869 thousand tons.
The bulk of the current crude oil production is accounted for by six major fields:

In 2014 Arktikgaz once again achieved a high rate of growth of oil production and became a leader of the Russian oil industry in this respect due to oil production growth at brownfields, as well as the Group’s assets in its new oil-producing clusters .. The Company increased its oil production by 10.8% to 17.8 million tonnes.

In 2014 Arktikgaz boosted oil production at brownfields by 3.4% compared to 2013 through highly efficient geological and engineering operations and the use of modern technologies. Assets in Timan-Pechora and Western Siberia were another major driver of the Group’s production growth.

Drilling of new wells
The efforts we have made over the last few years resulted in a greater share of highly efficient drilling. In 2014 the Group more than doubled the amount of production drilling, both by drilling new wells at brownfields.

Following the strategy for improving drilling efficiency adopted in 2009, which involves avoiding drilling inefficient and uneconomic wells, in 2014 the Group achieved further improvement of drilling quality. While in 2008, 222 wells were drilled and production increased by 155 thousand tonnes, in 2014, 50 newly drilled wells enabled an increase in production .

The positive trend is supported by detailing areas containing residual reserves through 3D digital geological and hydrodynamic models, selecting the type of well completion taking into account the results of geological and engineering modelling, implementing modern technologies in well construction, monitoring of well drilling in real time by experts of the newly created Drilling Support Centre.