OREANDA-NEWS. April 20, 2007. In April this year the largest upstream subsidiary of Oil and Gas Company “Russneft”, OAO “Belkamneft” is celebrating its 10-th anniversary. During these years the company has become an advanced enterprise in terms of the rate of development. In 2006oil production volume exceeded 4 million tons, and, according to the General Director of the OAO, Vladimir Ignatko, the development prospects of the company are clearly determined: improvement of oil production technologies, further build-up of production and resource base. This was the subject of the interview Vladimir Mikhailovich gave to the magazine “Svoye Delo”.


Vladimir Mikhailovich, as far as I understand, the anniversary is not the only reason for the company’s team to celebrate? On the opposite, 10 years – this is the reason to celebrate the significant results the company has achieved in recent years… “Well, I can actually say that we have deserved the gala day, and we are going to meet it  in high spirits and with high results.  In recent years “Belcamneft” has stably been building up oil production. As a part of vertically-integrated holding “RussNeft” in 2004 and 2005 the company achieved peak results of production increment for Udmurtia: more than 25%. And in 2006 the group of companies "Belkamneft" hit its peak production level: four million tons of oil” – he said.


Production growth, in its turn, enabled the company to increase annually the allocations to budgets of all levels.  It is only last year that we allocated to the budget more than 12 billion rubles.
 “Production growth the company has displayed must have had some background.  Is it so that the company’s strategy based on considerable enlarging of investments into new wells construction and modern technologies has had its effect?”


“Certainly. Introduction of advanced technologies is a priorty with the entities of the holding: considerable funds are annually invested in this sphere. It is innovative approach to geological, technical and works that enabled "Belkamneft" to achieve stable production growth,. We try to exploit the plots which are at the balance of "Belkamneft" actively but rationally. For instance, in 2004 when the upstream companies at the territory of Udmurtia were dramatically reducing their drilling works our company brought into production 68 new oil wells.  In 2005 there were 20 more ones and 25 more in 2006. These are  large amounts of investments but we were unlikely to achieve good results without them”
“Speaking about the enterprises which were integrated in "Belkamneft" of late years (“Udmurtgeologia”, UNC, UNNC, and “Uralskaya Neft” – editorial comment), how are they? As far as I know the state of some of them was far from good …”


“In fact, there were many problems regarding the enterprises merged into our company, both from the point of view of industrial safety and fulfillment of license agreements. That is why we have invested millions of rubles into technical re-equipment of these enterprises to prevent technogenic and industrial cataclysms, undertaken serious measures for adjusting technological procedures, strengthening of labor discipline. And as the result we now have a strong and technically well equipped structure able to support implementation of most ambitious projects”.
“Vladimir Mikhailovich, what are the company’s plans for the current year and what is your assessment of the Udmurt oil industry on the whole for the  future?”
“In accordance with the business-plan approved by “RussNeft” we are planning to produce more than 4 million tons of oil, to carry on intensive introduction of new advanced technologies at the production sites of the company. Actually, we have a lot of work to do, but you know the proverb: “Walk and ye shall reach”.
“Speaking about the prospects of oil production in the republic on the whole, my opinion is that the proved reserves may last for minimum 30-40 years. If the natural resources are used in a reasonable and  responsible manner, upstream companies shall be able to produce in Udmurtia 12-13 million tons annually”.


“Nowadays the issues of ecological safety are given closest attention from the part of the government, and in this connection there are many claims to upstream companies. And the claims are well grounded – production growth and allocations to the budget please everybody, but environment must not suffer in the process. What are the measures taken by "Belkamneft" in this connection? Have you got your own ecological safety program and how is it being implemented?”


“The main principles of "Belkamneft"’s work at oilfields, as those of any upstream entity integrated into Oil and Gas Company “RussNeft” are as follows: observing ecological safety norms, environment preservation and reasonable use of mineral resources. Of course, we have the program of ecological safety and in 2006, for example, 635 million rubles was allocated to its implementation. The money was spent on construction of  oil-resistant facilities, reconstruction of pipelines, permanent ecological control and environment  monitoring. We must be able to develop and exercise necessary measures for ecological safety in advance. It is for this purpose, in particular, that the company purchased a mobile ecological complex at the basis of “Gazel” car. This equipment is unique  for Udmurtia. Now we can say that we “keep in touch” permanently”.


“"Belkamneft", apart from paying the taxes, allocates funds to the budget of the Republic, under the agreement between the Government of the UR and OAO NK “RussNeft”and besides, implements social and charity projects. What sums are engaged in this kind of activity and why do you do that?”

“It is not a matter of arguing for us – whether investing into social development of the Republic is worth doing. It is, by all means. Business is responsible to society, that is why social improvement of the territories where "Belkamneft" is carrying on its production activity and of Udmurtia on the whole is an integral part of the company’s policy”.