Oil Production


Bashneft upstream assets mainly located in three Russias key oil producing regions  Volga-Urals, Timan-Pechora and Western Siberia. Bashnefts brownfields are mainly located in the Republic of Bashkortostan, which accounts for more than 80% of Companys total output. Moreover, the Company developing greenfields projects in new regions  Timan-Pechora and Western Siberia.

Crude oil production

Crude oil production

We maintain a steady rate of growth of annual production through comprehensive measures to support production at brownfields, successful development of new promising fields, as well as asset acquisition. Bashneft focuses on the efficiency of production: we apply highly efficient geological and engineering operations, pay much attention to technological and economic efficiency, control of energy consumption. Growth of the Groups oil production growth since 2009 totalled 63%.

In 2015 the Group increased its oil production by 11.9% to 19.9 million tonnes. Average daily production amounted to 54.5 thousand tonnes per day (398 thousand barrels per day) (The barrel-tonne conversion ratio is 7.3.)

Highly efficient geological and engineering operations and modern technologies made it possible to significantly increase oil production at brownfields in 2015 by 2.5% compared to 2014.

Production growth in the Group due to geological and engineering operations, thousand tonnes

20131 20142 20153
Optimization of pumping equipment 382.9 306.9 293.9
Hydraulic fracturing 489.8 679.7 905.0
Bottom-hole treatment 116.3 120.7 82.0
Reperforation 206.2 290.2 109.4
Commissioning of new wells 525.7 866.3 1,549.8
Development of overlying or underlying formations 87.5 120.1 73.6
Sidetracking 14.5 144.4 85.5
Other 86.8 91.5 128.3
Total 1,909.9 2,619.8 3,227.5

[1] Including geological and engineering operations at the R. Trebs and A. Titov fields.
[2] Including geological and engineering operations at the R. Trebs and A. Titov fields and fields of LLC Burneftegaz.
[3] Including geological and engineering operations at the R. Trebs and A. Titov fields and fields of LLC Burneftegaz.

Large part of the Groups production growth accounts for assets in Timan-Pechora Basin and Western Siberia. Their share in the annual productions amounted to 16.1%.

In 2015, due to a substantial increase in the share of production in other regions, the share of oil production in the Republic of Bashkortostan in total production decreased from 88% to 80.9%.

Oil production by region, million tonnes

2013 2014 2015
Republic of Bashkortostan 15.1 15.7 16.1
Khanty-Mansi Autonomous District 0.3 0.9 2.0
Orenburg Region 0.2 0.2 0.1
Republic of Tatarstan 0.2 0.14 0.2
Nenets Autonomous District 0.3 0.8 1.4
Total 16.1 17.8 19.9

Drilling of new wells

The efforts we have made over the last few years resulted in a greater share of highly efficient drilling.

In 2015 the Group increased the amount of production drilling by 58.5% compared to 2014, both by drilling new wells at brownfields, and due to the performance of LLC Bashneft-Polyus and LLC Burneftegaz. In the reporting year production drilling, including the results of LLC Bashneft-Polyus and LLC Burneftegaz, amounted to 431.4 thousand meters.

Production drilling, thousand metres

Drilling and commissioning of new wells

The Group commissioned 158 new wells, including 140 newly drilled wells (Including: 77 wells of LLC Bashneft-Dobycha; 27 wells of LLC Bashneft-Polyus and 36 wells of LLC Burneftegaz), which is 65 wells more than in the previous year.

Drilling and commissioning of new wells*

Drilling and commissioning of new wells

Following the strategy for improving drilling efficiency adopted in 2009, which involves avoiding drilling inefficient and uneconomic wells, in 2015 the Group achieved further improvement of drilling quality.

We managed to achieve significant decrease of non-productive time in drilling through developing and implementing efficient measures for preventing accidents, as well as through using high-quality equipment and high-qualified personnel of contractors. As part of an import substitution strategy, we initiated well drilling work with participation of domestic drilling and service companies. The domestic equipment made it possible to drill wells without accidents, achieving sinking and drilling speed indicators that exceed the foreign analogues.

In 2015 additional oil production at 140 newly drilled wells amounted to 1,502.7 thousand tonnes while the average annual growth per well amounted to 78.3 tonnes per day.

Average oil production rate for new wells commissioned in 2015 amounted to 93.5 tonnes per day. (Data include data on LLC Bashneft-Polyus and LLC Burneftegaz)

Average production rate of existing wells, tonnes per day

 Average production rate of existing wells, tonnes per day

We plan to achieve further production growth through:

  • maintaining the average production rate of new wells at the level of 2015;
  • increasing production drilling and subsequent commissioning of new wells;
  • performing highly efficient geological and engineering operations, including drilling and sidetracking; using technologies for oil production optimization.

Production of natural and associated gas

As of the end of 2014 Bashneft had 4 gas and 16 gas and oil fields in commercial production. Natural gas production totalled 36,052 million cubic metres. Associated gas production excluding LLC Burneftegaz totalled 662 million cubic metres (which is 9% more than in the previous year). Associated gas production totalled 795.2 million cubic metres (up by 14% compared to the previous year).

The main areas of associated gas utilization in the Group are as follows:

  • supply of gas to third parties and subsidiaries;
  • own consumption;
  • supplies of gas for processing to natural-gas processing plants; and
  • development of own power generating facilities.

Natural and associated gas production

2013 2014 2015
Natural gas production, million cubic metres 37.3 38.0 36.1
Total associated gas production, million cubic metres 605.0 662.1 795.2
LLC Bashneft-Dobycha 556.2 526.9 528.5
LLC Bashneft-Polyus 48.7 135.2 191.6
LLC Burneftegaz 35.5 75.2
Total associated gas utilization, million cubic metres 440.0 487.5 594.5
LLC Bashneft-Dobycha 419.6 432,.5 446.5
LLC Bashneft-Polyus 20.3 55.0 76.3
LLC Burneftegaz 34.1 71.7
Associated gas utilization rate 72.7% 74.8% 74.8%
LLC Bashneft-Dobycha 75.4% 82.1% 84.5%
LLC Bashneft-Polyus 41.7% 40.7% 39.8%
LLC Burneftegaz 96.1% 95.3%

The Companys average associated gas utilization rate increased to 74.8%. At the same time, the associated gas utilization rate at LLC Bashneft-Dobycha reached 84,5%. In the short term, we expect to increase associated gas utilization at the R. Trebs and A. Titov fields by starting to use associated gas to maintain formation pressure. Production assets of LLC Burneftegaz have achieved a high associated gas utilization level complying with regulatory requirements (95.33%).