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PR Newswire
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Udmurtneft celebrates 15 years under management of Rosneft and Sinopec

MOSCOW, July 23, 2021 /PRNewswire/ -- JSC Udmurtneft celebrates 15 years of joint operation under the management of Rosneft and China Petrochemical Corporation, Sinopec. In 2006, Sinopec entered the share capital of Udmurtneft and became the first Chinese company to participate in an oil and gas production project in the territory of Russia.

Udmurtneft is the leader of the fuel and energy sector of the Udmurt Republic. Its annual production amounts to around 6 million tons of oil, or 60% of the region's total oil production. Over 15 years of collaboration of Rosneft and Sinopec, the company has produced over 91 million tons and drilled more than 1,200 new wells. Over this period, the volume of exploitation drilling has grown 6.3 times, and the footage in exploitation drilling has increased 8 times. Today, Udmurtneft operates more than 3,800 wells. Since the beginning of 2020, Udmurtneft has implemented over 1,300 activities in line with its geological and technical activities programme.

One of the key objectives of Udmurtneft is to expand the resource base. Over 15 years, the total increase in recoverable reserves in the AB1 category has exceeded 109 million tons of oil. Since 2006, due to exploration works, the increase in reserves has exceeded 70 million tons of oil, 1,244 sq km was explored through 3D seismic survey and more than 4,000 lin km was explored with the 2D method. The total remaining recoverable reserves of the company make up about 200 million tons.

Digitalisation and automation are among the crucial development directions for Udmurtneft. Over 60% of oil treatment and transportation facilities and almost 70% of production wells have been automated by now, and digital models for 24 fields have been created.

Udmurtneft successfully implements the Energy Saving Programme to improve energy efficiency. In 2016, the company implemented the Energy Management System meeting the requirements of the international standard ISO 50001:2018 "Energy Management System". Over 15 years, annual energy savings have increased by 45%, reaching 44 million kWh in 2020.

As part of joint work, the total volume of investments increased by 3.2 times and amounted to 120 billion rubles. During this period 38 capital construction projects, 775 km of pipelines, 205 well pads and 900 wells were brought into production.

Udmurtneft implements the programme "Improvement of Pipeline Reliability". Since 2006, more than 1,800 km of pipelines have been repaired and replaced, the total number of equipment failures has decreased by 1.5 times. The total stock of active pipelines exceeds 4,500 km.

Udmurtneft is the largest taxpayer, employer and investor in Udmurtia. The share of the company's tax payments to the consolidated budget of the Udmurt Republic amounted to 6% in 2020. Over 15 years, tax payments to the consolidated budget of the Republic have increased by 1.5 times.

For many years, socially significant charity projects have been implemented, the regional infrastructure in the areas of Udmurtneft's production activity has been improved. The company allocates funds for land improvement and development of socially important objects in the region.

Udmurtneft is an example of successful cooperation of Rosneft and Sinopec that contributes to strengthening strategic energy partnership relations between Russia and China. Over 15 years, the fuel and energy products supply (oil, petroleum products, coal, and electricity) from Russia to China has grown manifold. As a result, Russia has become the largest supplier of energy resources to China.

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