ENP Newswire -
Release date- 02052014 -
In Q1 2014, crude oil and liquids production (including production of subsidiaries and proportionately consolidated entities, and the share in production by affiliates) reached 4,189 th. bpd (0.5% growth year-on-year), gas production reached a record-high level of 13.18 bcm (i.e. more than doubled).
In Q1 2014 the Company was preparing to put on stream new fields in producing regions which will allow maintaining production while minimizing costs. The Osoveyskoye field in Timano-Pechora (with 36 mln t of geological C1+ C2 reserves) is being prepared to be commissioned this year as is the North Chaivo field offshore the
In the reporting period the Company continued stabilizing production in brownfields, first and foremost, by efficiently managing waterflooding and drilling wells with multi-stage hydraulic fracturing. OJSC Varyoganneftegaz and the Samotlor field showed the most prominent successes in slowing down natural production decline. The Company reduced annual slowdown rates of the named assets by 2.5 times in Q1 2014 versus the same period in last year.
In Q1 2014 Rosneft produced a record-high 13.18 bcm of gas more than doubling its gas production versus Q1 2013. The Company continues its programs to increase associated petroleum gas utilization and intends to reach 95% of APG utilization at Vankor by the end of 2014. Under its assets optimization program, the Company closed a deal to sell a 49% stake in LLC Yugragazpererabotka to SIBUR in
In Q1 2014, Rosneft processed 24.87 mln t of crude at Russian and foreign refineries.
The Company carried on with successful implementation of Russian refineries large-scale upgrade program in 1Q 2014. Construction of 4 units at the Ryazan, Novokuybyshevsk and Kuybyshev refineries is scheduled to be completed this year.
Rosneft revenues (including equity share in profits of associates and joint ventures) reached
Earnings before interest, taxes, depreciation and amortization (EBITDA) more than doubled and reached
Rosneft net income reached
The Company's free cash flow more than tripled to reach
In Q1 2014 Rosneft early repaid some of its loans it raised to buy
Commenting on Q1 2014 performance,
Particularly, we continue to focus on the acceleration of our efficiency improvement program that targets cost reduction and improvement to our contractor management. Under this initiative, we revised our drilling business strategy to develop our in-house services and using them to replace contractors who fail to meet Company standards of efficiency increase.
The Company continued debt reduction against a backdrop of substantial increase in cash-flow generation.
We continue to develop our gas business by ramping up activities at Kharampur gas deposits with an annual production potential of 24 bcm. Key infrastructure facilities are being built in Rospan.
Preparation for drilling the first well in the
Tel: +7 (495) 411 54 20
Fax: +7 (495) 411-54-21
These materials contain statements about future events and expectations that are forward-looking statements. Any statement in these materials that is not a statement about historical reporting periods is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We assume no obligations to update the information contained herein to reflect actual results, changes in assumptions or changes in factors affecting these forward-looking statements.
Most Popular Stories
- Islamic State Obliterating Cultural Landmarks in Mosul
- The 2014 Fastest-Growing 100
- 'Lucy's' Super Powers Tops 'Hercules' at Box Office
- Boehner Says Impeachment Talk Is Democrat Scam
- You're So Vain: Microsoft to Launch First 'Selfie Phone'
- VW Site Could Mean Another 2,000 Jobs for Chattanooga
- RV Sales See Highest Increase Post Great Recession
- U.S. Home Price Gains Slow for 6th Month in a Row
- Report: China to Declare Qualcomm a Monopoly
- Insecticides Permeate U.S. Food, Water Supply