OREANDA-NEWS. July 19, 2012. Alliance Oil Company's average daily oil production for the second quarter of 2012 amounted to 53,540 bopd compared to 41,900 bopd in the second quarter of 2011. In total, 4.9 mbbl were produced in the reporting period compared to 3.8 mbbl in the second quarter of 2011. Preliminary average daily refining volumes at the Khabarovsk refinery amounted to 78,400 bopd in the second quarter of 2012 compared to 75,400 bopd in the second quarter of 2011. In total, 7.1 mbbl were refined compared to 6.9 mbbl in the second quarter of 2011. Preliminary crude oil and oil product sales amounted to 4.9 mbbl and 7.5 mbbl respectively in the second quarter of 2012 compared to 3.6 mbbl and 7.0 mbbl in the second quarter of 2011.

The guidance for the downstream segment is increased to an average daily production of 72,000-77,000 barrels (68,000-73,000 barrels). The upstream production guidance for 2012 remains at an average daily production of 55,000-60,000 barrels.

Preliminary operating results in barrels per day:

 

Upstream

Downstream

2012

Production

Crude oil sales

Refining

Oil product sales

January

59,421

56,734

77,531

65,865

February

55,187

54,444

78,390

77,634

March

54,481

49,752

69,129

69,377

1st quarter

56,363

53,643

75,017

70,959

April

52,918

52,297

70,888

72,625

May

54,422

53,689

81,946

93,600

June

53,279

54,795

82,260

82,828

2nd quarter

53,540

53,545

78,404

82,912

6 months

54,951

53,594

76,691

76,988

Upstream

Average daily oil production in the Timano-Pechora region amounted to 22,600 bopd in the second quarter of 2012 compared to 12,100 bopd in the second quarter of 2011. Oil production in the Volga-Urals region and Kazakhstan amounted to 22,500 bopd in the second quarter of 2012 compared to 21,200 bopd in the second quarter of 2011. Oil production in the Tomsk region amounted to 8,500 bopd in the second quarter of 2012 compared to 8,600 bopd in the second quarter of 2011. In the second quarter of 2012, 32 new wells were drilled including 3 exploration wells in the Volga-Urals and Timano-Pechora regions.

At the Kolvinskoye oil field in the Timano-Pechora region, the average daily production amounted to 12,400 barrels with a total of 1.1 mbbl produced for the quarter. As of June 30, 2012 the well stock of the field consisted of 33 production wells and 1 exploration well. 17 wells were in operation, 16 wells were not producing due to testing and workover operations and 1 well was transferred to an injection well. 5 new wells were drilled in the second quarter of 2012.

Downstream

In the downstream segment capacity utilization of the refinery remained high due to strong demand for oil products both domestically and internationally. Wholesale and export volumes increased compared to the previous quarter.

Crude production was stabilized through the ongoing well workover programme and the recent addition of new production wells. Oil product sales reached new highs as export and domestic seasonal demand further increased. Oil and currency markets were volatile with lower international oil prices and lagging export duties negatively affecting upstream and downstream margins; says Arsen Idrisov, Managing Director of Alliance Oil Company.

Upstream and downstream production data for July 2012 will be disclosed on August 10, 2012. Second quarter financial results will be disclosed on August 21, 2012.