Stable crude oil and gas production with application of innovative technology concepts was one of the Company's main tasks in 2011.

 

Totally OAO TATNEFT produced 25.928 million tons of crude oil in 2011 with conditioning and delivery of 25.3 million tons. Natural gas liquids production amounted to 286 thousand tons and the volume of associated petroleum gas was 790 million cubic meters.

 

The extra-viscous oil deposits of OAO TATNEFT are the ground for working out effective technologies for production and processing of bitumen, which subsequently can be used in the development of similar reserves in other regions of Russia. 41.5 thousand tons of crude oil was produced from seven pairs of horizontal wells at Ashalchinskoye field with application of steam assisted gravity drainage technology. One hundred thousandth ton since the beginning of the pilot field development was produced in November. Today, the daily production amounts to 145 tons, the maximum oil production rate of one hole has reached 44 tons per day. The plans for 2012 provide for drilling of 10 new wells and increasing oil production to 50 thousand tons as well as commissioning of a high capacity boiler for steam generation.

 

New technologies are successfully implemented for drilling wells. 533.3 thousand meters of rock were penetrated for TATNEFT on the territory of the Republic during the reporting year. 309 new production wells were put into operation including 4 multilateral wells with the average production rate of 12.6 tons per day.

 

The technology of drilling small diameter holes designed by the creative team of TATNEFT headed by the Company’s General Director proved to be efficient. The Company’s stock of wells to date totaled 204 pieces with 63 of them constructed in 2011. The construction cost of such wells is 30 percent cheaper than conventional ones, while the average production rate reaches the production level rate of conventional wells. The idea of drilling with application of this technology was recognized the best innovative idea in a republican contest in 2011.

 

The technology of surface casing drilling with running and cementing previously used casing pipes prior to the arrival of the drilling crew is successfully being developed.

 

Further increase in efficiency is possible through improvement of drilling-in methods, increasing the average production rate as well as through reducing the time and the cost of wells construction. In 2012 the focus will be placed on expanding drilling of multilateral wells, improving the technology of sidetracking.

 

Decisive role in the stabilization of crude oil production is referred to application of modern enhanced oil recovery methods (EOR) and well workover technologies. Application of tertiary EOR methods resulted in production of 5.5 million tons of crude oil accounting for more than 20 percent of the Company’s total production volume.

 

New concepts of wells workover are successfully being developed. 320 hydraulic fracturing operations were performed during the last year with 15 of them implemented in new wells after drilling.

 

Application of technologies using coiled tubing units is being expanded.

 

One of the strategic and rapidly developing technologies of the fields operation at TATNEFT is a system of dual reservoir completion and production through one well (DCP). 241 DCP installations were put into operation in 2011. The DCP systems have been installed in 980 wells at present. The accumulated oil production from them amounted to 2.861 million tons. The average growth of the crude oil production rate amounted to 3.7 tons per day.

 

An integral indicator of the Company’s development technological level is the time between failures period of wells operation, which has been steadily increasing in recent years and still remains the highest among major oil producing companies in Russia. It exceeded the level of three years in 2011, and is 1,142 days now.

 

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