OREANDA-NEWS. June 24, 2008. Production of the oil companies in the Republic of Tatarstan amounted to 2,795,907 tons of crude oil accounting for 101.15% versus the month of May of 2007. The crude oil production amounted to 13,535,481 tons during the period of five months or 101.4% versus the same period of the last year.

OAO TATNEFT produced 2,239,717 tons of crude oil in May with the above-the-plan production amounting to 25,124 tons (101.13%). The amount of 2,201,362 tons of crude oil was delivered, while the above the plan production amounted to 22,462 tons of crude oil.

OAO TATNEFT produced 10,890,698 tons of crude oil during the period of five months with the amount of 84,834 tons of crude oil in excess of the amount produced during the similar period of the previous year (100.79%). The above-the-plan production amounted to 120,655 tons of crude oil (101.12%). The cumulative index "plan + additional assignment" for the whole of OAO TATNEFT was exceeded by 54.9 thousand tons of crude oil (100.51%). The leaders are NGDUs Elkhovneft (102.55%), Almetyevneft (100.98%), and Prikamneft (100.66%).
The amount of 10,641,949 tons of crude oil was delivered by the first quality group, while the above the plan delivery amounted to 127,849 tons.

Drilling

The information about the drilling activities for the period of five months is provided taking into account the operation of OOO Tatneft-Burenye Management Company for the first quarter and operation of the new entity OOO UK (Management Company) Tatburneft (starting April 1, 2008).

Of the total amount of 308 thousand meters drilled during the period of 5 months 205 thousand meters were penetrated for OAO TATNEFT and 14 thousand meters for affiliated companies of OAO TATNEFT and 89 thousand meters for joint ventures and independent oil companies.

174 wells were constructed and handed over to customers and out of this amount 112 wells were constructed for affiliates of OAO TATNEFT, 8 wells and 54wells for joint ventures and independent oil companies.

Well drilling operations with application of traditional drilling techniques were performed by 47 drilling crews. Additionally one crew performed drilling into the producing layers in the balanced pressure mode at NGDU Bavlyneft. Works with application of this technology have already been performed at six wells. Of this total number of the drilling crews one drilling crew performed drilling of the fourth exploratory well for OAO Podzemburgaz Company under the program of the Republic of Tatarstan for construction of the underground gas storage facility. Drilling operations were performed by four crews outside Tatarstan in the territory of Samara District. 15.9 thousand meters have been drilled outside the Republic of Tatarstan from the beginning of the year. Penetration at the multilateral and horizontal wells for OAO TATNEFT amounted to 37.9 thousand meters.

Penetration per one drilling crew amounted to 6,512 meters during the period of 5 months.

Workovers and EOR (Enhanced Oil Recovery)

684 well remedial works were performed during the month of May while 3,706 well remedial works have been performed from the beginning of the year.

1,052 wells were worked over during the period of five months in 2008 (214 wells in May) including the production string sealing in 146 wells; shutting-off individual layers and recompletion in other intervals in 131 wells; transfer of the wells into different categories and wells completion for injection in 86 wells; well failure remedy and cleaning of the production casing and the bottom hole in 108 wells; physical well abandonment and re-abandonment in 14 wells.

255 wells were worked over with application of coil tubing including 59 wells worked over through the annulus.

Formation hydrofracking operations were performed at 53 wells. The cumulative incremental recovery amounted to 2,085 thousand tons.

9 small diameter wells were drilled and completed during the period of January-May: 4 wells in NGDU Almetyevneft and 5 wells in NGDU Prikamneft. There are 2 wells in the process of drilling now:  1 well in Almetyevneft and one well in Prikamneft.

Works on oil recovery enhancement were performed at 798 wells including the chemical treatment methods applied at 506 wells. The incremental oil production resulting from application of the enhanced oil recovery methods amounted to 2 million 109 thousand tons, with the chemical methods accounting for 992 thousand tons.

ООО "Tatneft-ChimService" Company rendered 1,038  works for acid compositions preparation and delivery.

ООО "Tatneft-ChimService" Company produced  13 thousands 462 tons of chemical products during the period of five months in 2008 for the amount of 284 million rubles.