Activities

Production & Exploration Activities


Voyvozhneft has grown at an exceptional pace and has matched this with a very strong exploration, operational and financial performance. 2016 was another great year for the Company, with a 76% exploration and appraisal success ratio along with strong operational, strategic and financial performance.

None of this would have been possible without a strong team of skilled and committed employees. We pride ourselves in our ability to attract, retain and develop outstanding talent. This is demonstrated by our staff turnover which has been less than 5.2% per annum over the last 3 years.

Our investing in purposeful companies in Russia region and abroad is to acquire the raw material base for production and ensuring our production capacity increase tremendously. The company uses modern technology in its exploration work, which ensures growing efficiency of exploration. The success rate in prospecting and exploration drilling by the Group is about 76%.

The upstream sector is a strategically important part of the vertically integrated holding company Voyvozhneft, ensuring smooth operations of the entire Company.

We have been granted licenses for prospecting and developing raw hydrocarbons deposits.

Technological methods applied for improving production in new fields:

  • geophysical technology for optimization of selecting well-drilling site locations
  • low-frequency seismic sounding
  • software package 3D 'Stratimegic' for processing seismic survey results.
  • electromagnetic sounding (EMS)
  • prediction of oil-bearing intervals with application of the "Neuroseism" artificial intelligence method

In 2015 Voyvozhneft drilled 12 slim hole wells (SHW) and 9 of those wells were commissioned for oil production (oil production volume amounted to 9.863 thousand tons). The average production rate reached 6.7 tons per day. The total number of SHW drilled from the beginning of the method implementation amounts to 34 slim wells.

Application of enhanced oil recovery methods is a determinative factor in oil production. Incremental oil production resulting from tertiary oil recovery enhancement methods amounted to 3.47 million tons in 2016. In aggregate the production resulting from application of the enhanced oil recovery methods accounted for 46.4% of the total production volume in 2016.

Strategic objectives in the Upstream segment

  • Cost control over controllable unit costs
  • Production maintenance at existing fields increasing output to over 28 million tonnes per year
  • Introducing technology to improve the efficiency of the existing ones and implementation of exploration programme to boost oil production
  • Creating a large production center in a new key operating region
  • Promoting inorganic growth of production and reserves by acquiring companies and licenses

The North will be a key region for growth of oil and gas production by the Company in the medium term, and Voyvozhneft is therefore devoting particular attention to the development of resource potential in the region. Increase of the company's proved reserves to international standards in the region during 2015, thanks to additional exploration, was 11 million barrels in 2016.