OREANDA-NEWS. September 15, 2008.
Oil production
Production of the oil companies in the Republic of Tatarstan in August amounted to 2,733,440 tons of crude oil accounting for 101.4% versus the month of August of 2007, reported the press-centre of Tatneft.

The crude oil production for the period of eight months amounted to 21,751, 783 tons or 101.4% versus the same period of last year. Independent oil companies produced 4,316,918 tons of crude oil accounting for the increase in the amount 214,073 tons versus the same period of the last year 2007. The growth amounted to 5.2%.

OAO TATNEFT produced 2,167,785 of crude oil in the month of August with the above-the-plan production amounting to 33,310 tons of crude oil (101.6%).

The amount of 2,109,800 tons of crude oil was delivered, while the above the plan production amounted to 28,900 tons of crude oil.

OAO TATNEFT produced 17,434,865 tons of crude oil during the period from the beginning of the year with the amount of 95,637 tons of crude oil in excess of the amount produced during the similar period of the previous year (100.6%). The above-the-plan production amounted to 229,776 tons of crude oil (101.3%). The best results were achieved by NGDUs Elkhovneft (102.8%), Almetyevneft, Yamashneft (101.7%).

The amount of 17,021,334 tons of crude oil was delivered with the above the plan delivery amounting to 232,634 tons of crude oil.

Drilling
The information about the drilling activities for the period of six 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 512 thousand meters drilled during the period of 6 months 324 thousand meters were penetrated for OAO TATNEFT and 19 thousand meters for affiliated companies of OAO TATNEFT and 169 thousand meters for joint ventures and independent oil companies.

310 wells were constructed and handed over to customers and out of this amount 189 wells were constructed for OAO Tatneft, 12 wells were constructed for affiliates of OAO TATNEFT, and  109 wells were constructed for joint ventures and independent oil companies.

Well drilling operations with application of traditional drilling techniques were performed by 47 drilling crews. Besides there was one drilling crew, which performed works for abandonment of well No. 216 for OOO "TNS-Razvitye (Development)" in Samara District.

There were seven drilling crews operating in the Samara District. 25.7 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 65.5 thousand meters. Penetration per drilling crew amounted to 10,735 meters during the period of 8 month.

Workovers and EOR (Enhanced Oil Recovery)
907 well remedial works were performed during the month of August while 6,333 well remedial works were performed from the beginning of the year.

1,766 wells were worked over during the period of five months in 2008, including the production string sealing in 235 wells; shutting-off individual layers and recompletion in other intervals in 218 wells; transfer of the wells into different categories and wells completion for injection in 129 wells; failure liquidation and cleaning of the 'electrical cable and bottom hole in 191, wells; physical well abandonment and re-abandonment in 19 wells.

442 wells were worked over with application of coil tubing (63 wells in August) or 7% more than during a similar period of 2007, including 103 wells worked over through the annulus (16 wells in August).

Formation hydrofracking operations were performed at 93 wells (13 wells in August). The cumulative incremental recovery amounted to 2,251 thousand tons.

15 small diameter wells were drilled and completed  during the period of January-August by two cost-accounting self-sustained crews of "Tatneft-LeninogorskRemService" Company: 8 wells in NGDU Almetyevneft, 6 wells in NGDU Prikamneft and 1 well in NGDU Jalilneft.

Works on oil recovery enhancement were performed at 1,436 wells (204 wells in August) или 101% to the plan, including the chemical treatment methods applied at 887 wells (132 wells in August) or 102% to the plan.

Works on oil recovery enhancement for the similar period of 2007 were performed at 1,602 скв., including the chemical treatment methods applied at 1,008 wells.

The incremental oil production resulting from application of the enhanced oil recovery methods amounted to 3,431 thousand tons or 105% during a period of six month with the chemical methods accounting for 1,619 thousand tons.

ООО "Tatneft-ChimService" Company rendered 1,842 works for acid compositions preparation and delivery.

ООО "Tatneft-ChimService" Company produced 23 thousand 591 tons of chemical products during the period of eight months in 2008 for the amount of 437 million rubles.