OREANDA-NEWS. JSOC Bashneft and the Administration of the Orenburg Region have signed an Agreement for economic and social development till 2016 aimed at creating favorable conditions for economic and social development of the Region. The Agreement was signed by JSOC Bashneft President Alexander Korsik and Orenburg Region Governor Yuri Berg.

The Agreement is the result of the sustainable development of bilateral relations, as well as an evidence of Bashneft interest in further implementation of oil production and oil supply projects on the territory of the Orenburg Region.

In particular, Bashneft intends to increase investments in exploration and development of fields located at the Kitayamsko-Blagoravskiy and Dachno-Repinsky license blocks, increasing the volume of oil production in the Region to 220 thousand tons per year by 2017.

The Company will continue implementing oil product supply investment programs aimed at the rebranding and modernization of gas stations and bulk plants, as well as the renewal of the vehicle fleet and further improvement of services at Bashneft filling complexes.

The Company will also continue to participate in projects aimed at the sustainable social development of the Orenburg Region.

With merging of OJSC Orenburgnefteprodukt and JSOC Bashneft in October 2012, tax payments to the regional and municipal budgets of the Orenburg Region have increased by more than 3 times and amounted to 489.7 mln roubles according to the last year results.

Reference: JSOC Bashneft operates in oil production and oil product supply in the Orenburg Region. Company subsidiary, LLC Bashneft-Dobycha carries out oil exploration and production at the Kitayamsko-Blagoravskiy and Dachno-Repinsky oil fields. The current production volume is 150 thousand tons per annum. Bashneft-Orenburgnefteprodukt (established after the merger of OJSC Orenburgnefteprodukt and JSOC Bashneft on October 1, 2012) is one of the leading companies in the Orenburg Region operating in oil product supply area. The subsidiary operates 88 filling stations and 15 bulk plants. Sales of oil products amounted to 653 thousand tons in 2012.