OREANDA-NEWS. April 13, 2011.
Oil Production
Oil companies of the Republic of Tatarstan produced 2,760,867 tons of crude oil in March, which accounted for 100.3% with regard to March 2010. Production volume for three months amounted to 8,012,216 tons or 100.2% versus the same period of the last year, reported the press-centre of TATNEFT.

TATNEFT produced 2,202,959 tons of crude oil in March or 100.4% with regard to March 2010. The amount of 6,393,991 tons was produced for three months accounting for 17.2 thousand tons increase versus the same period in 2010 (100.3%) with above the plan production amounting to 129,541 tons of crude oil (102.1%).

The amount of 6,454,224 tons of crude oil was produced from the fields of TATNEFT Group of Companies with above-the-plan production in the amount of 131,038 tons (101.9%).

Drilling
Traditional Drilling

The total penetration of new drilling for three months of 2011 amounted to 136 thousand meters (178.3 thousand meters in 2010):

- 109.8 thousand meters were drilled for TATNEFT (152.7 thousand meters in 2010), including 109.8 thousand meters of production drilling;

- 11.3 thousand meters (5.3 thousand meters in 2010) were drilled for TATNEFT's subsidiaries, including 11.1 thousand meters of production drilling and 0.2 thousand meters of exploratory drilling;

- 14.9 thousand meters (20.3 thousand meters in 2010) were drilled for joint ventures and independent oil companies including 11.4 thousand meters of production drilling and 3.5 thousand meters of exploratory drilling.

94 wells (113 wells in 2010) were constructed and handed over to the customers:

- 64 wells (73 wells in 2010) were delivered to TATNEFT including 64 production wells;

- 7 wells (3 wells in 2010) were delivered to TATNEFT's subsidiaries including 6 production wells and 1 exploratory well;

- 23 wells (37 wells in 2010) were delivered to joint ventures and independent oil companies including 22 production wells and 1 exploratory well.

8 small diameter holes were drilled and completed for TATNEFT during the mentioned period. At present drilling of one slim hole is on the way for each of NGDUs: Almetyevneft, Prikamneft and NGDU Aznakaevskneft.

Drilling in the Operating Stock
Total penetration of sidetracking and horizontal wellbores for three months of 2011 amounted to 10.3 thousand meters (7 thousand meters in 2010):

- 7.2 thousand meters (4.3 thousand meters in 2010) were penetrated for TATNEFT;

- 3.1 thousand meters (2.7 thousand meters in 2010) were penetrated for joint ventures and independent oil companies.
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Totally 19 wells (14 wells in 2010) were delivered to the customers:

- 15 wells (8 wells in 2010) were delivered to TATNEFT;

- 4 wells (6 wells in 2010) were delivered to joint ventures and independent oil companies.

35 drilling crews performed traditional well drilling operations in 2011. Additionally one drilling crew performed side tracking job at the depth of 3,700 meters in Orenburg region for Fosco and another crew performed drilling in Western Siberia for Slavneft-Megionetftegazgeologiya to the depth of 2,900 meters. One other crew performed drilling to the bituminous deposits at Ashalchinskoye field for NGDU Nurlatneft with application of a slant drilling rig.

Penetration per one crew in 2011amounted to 3,761 meters, while in 2010 the penetration per crew amounted to 4,121 m.

11 crews were engaged in drilling lateral wellbores and lateral horizontal wellbores including two crews from outside. 7 crews operate at the sites of TATNEFT and 4 drilling crews perform work for TNK-BP in Orenburg region.

11.1 thousand meters thousand meters were penetrated outside the Republic of Tatarstan. 16.2 thousand meters were penetrated in horizontal wells and multi-branched downhole splitters.
 
Well Repairs
618 well remedial operations were performed in March 2011 with a number of well remedial operations performed during three months amounting to 1,896 wells, which is 335 wells less, than in 2010 (2 231 wells during 3 months of 2010).

9 wells have been repaired outside the Republic of Tatarstan since the beginning of the year with 7 wells for Tatneft-Samara and 2 wells for Tatneft-Severny.

The workover operations were performed at 605 wells during three months of 2011 (222 wells in March), including: production string sealing in 98 wells; shutting-off individual layers and recompletion in other intervals in 58 wells; transfer of wells into different categories and the wells completion for injection in 33 wells; failure liquidation and cleaning of the electrical cable and bottom hole areas in 63 wells and physical liquidation and re-liquidation in 11 wells.

192 wells were worked over with application of coil tubing (67 wells in March), including 33 wells worked over through the annulus. Formation hydrofracking operations were performed in 72 wells (29 wells in March) while 53 wells were worked over during three months of 2010. The incremental crude oil recovery volume amounted to 4,658 thousand tons.

Oil Recovery Enhancement
Works on oil recovery enhancement were performed at 521 wells (180 wells in March), including chemical treatment methods applied at 307 wells (93 wells in March). The incremental oil production volume resulting from application of the enhanced oil recovery methods amounted to 1,347 thousand tons of crude oil with the chemical methods accounting for the production of 650 thousand tons.

Bottom hole zone treatment operations with application of TATNEFT's technologies were performed at 704 wells.