On October 9, 2018, RN-Yuganskneftegaz, the largest oil and gas production Subsidiary of Rosneft, set the absolute historical record of daily oil production: 197,193 tons, which is the highest figure in the history of the Subsidiary since 1964. The previous production record of 195,855 tons of oil was set by the Subsidiary more than 30 years ago, in 1986.

It was possible to achieve this indicator due to the introduction of advanced technologies in the process of field development, advanced drilling of low-permeability hard-to-recover reserves, the use of new completion methods and hydraulic fracturing, and the implementation of a set of effective geological and technical measures to intensify the inflow and increase oil recovery.

The new industry records in drilling have become hallmark of the Subsidiary.

In 13.4 days, a 4.7 km deep horizontal well was built with a unique combined production string with more than 1.5 km horizontal section.

A record has been set for the average drilling rate. In the first half of 2018, it was more than 6.4 thous. m/rig-month which is 2% more compared to the same period last year. Thanks to the contribution of RN-Yuganskneftegaz, Rosneft has achieved a new record in daily drilling penetration – 56,708 meters.

Such results were achieved through the large-scale application of innovative technologies and the introduction of own scientific developments. New technologies made it possible to breathe a second life into the development of oil fields.

RN-Yuganskneftegaz sets record for the commissioning of new wells from production drilling:: up to 5 new wells are commissioned every day, one of which is horizontal. Currently, drilling is in progress at 70% of the Subsidiary's fields, including such mature assets as Ust-Balykskoe and Pravdinskoye. At a number of fields, infill drilling operations are in progress, including the use of multi-stage fracturing technology (multifrac).

A new project is actively being drilled out and put into operation: Vostochno-Salymsky and Chupalsky license areas. Preparations are underway for the drilling of a new Erginskoye field.

In the medium term (by 2023), drilling will cover almost all fields of the Subsidiary.

To improve the efficiency of hard-to-recover reserves drilling, new technologies for horizontal wells completion with multistage fracturing (HW w/multifrac) are being tested. Various field tests are performed to increase the length of the horizontal section and the number of ports; various engineering solutions are being implemented aimed at improving the efficiency of HW w/multifrac (repeated selective frac operations and research).

In addition to drilling, in order to increase the development efficiency, a significant amount of geological and technical measures are carried out. More than 8,500 different types of well interventions per year are in place at the Subsidiary's fields. They use sidetracking, including horizontal sidetracking, and well stimulation to increase productivity; physico-chemical methods of enhanced oil recovery and water flooding management are widely applied; dual completion systems are being introduced.

Record scopes of development drilling and wellwork at almost all production sites of the Subsidiary and production shops are supported by significant capital construction of the field infrastructure facilities at a distance of 300 km west to east and 200 km north to south one from another.  RN-Yuganskneftegaz is successfully implementing a series of steps to further expand the infrastructure and build up production capacity.

Rosneft Information Division
09 October 2018