OREANDA-NEWS. September 14, 2007. The Oil Companies of the Republic of Tatarstan produced 2,695.1 thousand tons of crude oil in August accounting for 101.4% versus the month of August in 2006. The amount of 21,442.1 thousand tons of crude oil was produced from the beginning of the year or 102.6% versus the same period of the last year.

OAO TATNEFT produced 2,169 thousand tons of crude oil in August accounting for 100.7% versus the month of August of the previous year. The amount of 9.9 thousand tons of crude oil (100.5%) was produced above the plan. The best results were achieved by NGDUs (Oil and Gas Production Boards) Yamashneft, Nurlatneft and Leninogorskneft. The amount of 2,133.6 thousand tons of crude oil was delivered with the above-the-plan delivery amounting to 31.7 thousand tons.

The Oil and Gas Production Boards of OAO TATNEFT produced 17,339.2 thousand tons of crude oil from the beginning of the year demonstrating growth in the amount of 315.5 thousand tons versus the similar period of the previous year or (101.9%). The above-the-plan production amounted to 303 thousand tons of crude oil (101.8%). The best results were achieved by NGDUs (Oil and Gas Production Boards) Elkhovneft, Yamashneft and Leninogorskneft.

The amount of 17,203.9 thousand tons of crude oil was delivered by the first quality group with the above-the-plan delivery amounting to 622 thousand tons.

Drilling

Tatneft-Burenie (Drilling) Company executed the plan of drilling meterage for seven months of 2007 by 106.9%, with 551.6 thousand meters penetrated, including 372.2 thousand meters drilled for OAO TATNEFT (109.8%); 178.7 thousand meters drilled for Joint Ventures and small independent oil companies and; and 700 m drilled to the bitumen deposits.

353 wells were constructed and handed over to customers including 218 wells (114.1% to the plan) for OAO TATNEFT; 134 wells for Joint Ventures and independent oil producing companies and drilling to the bitumen - 1 well.

Well drilling operations with application of traditional drilling techniques were performed by 49 drilling crews including two crews operating on the subcontract basis. Two crews performed drilling into the producing layers in the balanced pressure mode and in the mode of underbalanced drilling (UBD)

Four drilling crews performed drilling operations outside the Republic of Tatarstan in Samara District.
 
The volume of horizontal wellbore drilling and sidetracking performed by Tatneft-Burenie (Drilling) Company amounted to 5,117 meters with 16 wells handed over to the customers for operation.

Penetration per one drilling crew amounted to 10,940 meters during the period of 8 months.

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OOO TNG-Lenburneft Company penetrated 24.6 thousand meters during the last five (April -August) months period, including 14.9 thousand meters drilled for OAO TATNEFT; 8.2 thousand meters drilled for joint ventures and small oil companies and, 1.5 thousand meters drilled to the bitumen deposits.

19 wells were constructed and handed over to customers for operation including 11 wells for OAO TATNEFT, drilling to the bitumen deposits - 2 wells, and 6 wells for joint ventures and independent oil companies.

5 drilling crews performed drilling operations in this company with 4 of the crews drilling for NGDU Leninogorskneft, while 1 crew performs drilling for Tatneft-Samara Company.

Sidetracking operations in the old well stock were performed by 10 crews, including 1 crew operating on a subcontract basis, with 2 crews operating in Orenburg District and 8 crews operating for OAO TATNEFT. The volume of horizontal wellbore drilling and sidetracking performed during the period of the last five months amounted to 11.4 thousand meters with 29 wells handed over to the customers for operation.

Workovers and EOR (Enhanced Oil Recovery)

950 well remedial works were performed in August (6,717 wells from the beginning of the year).   The lost crude oil production due to well shut-down period and waiting for remedial works amounted to 148 thousand tons accounting for 10.5% reduction versus the similar period in 2006.

1,761 wells were worked over during the period of seven months of the current year (248 wells in August), including the production string sealing in 265 wells, shutting-off individual layers and recompletion in the other intervals in 296 wells, transfer of the wells into different categories and wells completion for injection in 139 wells, well failure remedy and cleaning of the production casing and the bottom hole in 121 wells, physical abandonment and re-abandonment in на 54 wells.

413 wells were worked over with application of coil tubing (64 wells in August) with 89 wells worked over through the annulus (12 wells in August)

Formation hydrofracking operations were performed at 81 wells (17 wells in August). The cumulative incremental crude oil production volume amounted to 1,569 thousand tons of crude oil.

Two crews of the self-sustained section of LUPNP I KRS (Leninogorsk enhanced oil recovery and workover company) constructed two small diameter wells for NGDU Almetyevneft  and two wells for NGDU Nurlatneft in June-August of 2007. Construction of two additional small diameter wells for the mentioned NGDUs is in the process at present.

Works on oil recovery enhancement were performed at 1 602 wells (245 wells in August) including chemical treatment methods applied at 1,008 wells (145 wells in August). The additional crude oil production through application of oil recovery enhancement methods amounted to 3 million 452 thousand tons of crude oil (109% to the plan) with chemical methods accounting for production of crude oil in the amount of 1 million 635 thousand tons.

Neftechimservice Company produced 22 thousand tons of chemicals for the amount of 397 million rubles, including 5,777 tons of chemicals for outside companies.

The works on radial drilling projects by OOO RV-Plast were renewed at the wells of OAO TATNEFT starting August 6. The works of radial drilling were performed at 6 wells during this period o time including 3 wells for NGDU Prikamneft and 3 wells for NGDU Yamashneft. All in all radial drilling jobs were performed at 18 wells for OAO TATNEFT and at 4 wells for outside companies.