Yuganskneftegaz

Infobox Company
company_name = _ru. Юганскнефтегаз Yuganskneftegaz
company_
company_type = Private
foundation = 1964
location = flagicon|Russia Nefteyugansk, Russia
key_people = Vladimir Bulba (Managing director)
industry = Energy
products = Upstream
revenue =
operating_income =
net_income =
num_employees =
homepage = [http://www.rosneft.ru rosneft.ru]

"Yuganskneftegaz" ( _ru. Юганскнефтегаз) is a joint stock company that owns and operates the second largest oil production complex in Russia.

Background

"Yuganskneftegaz" began operations in 1964, and saw significant upgrades in the 1990s that are responsible for bringing its production to their current levels. Yuganskneftegaz was formerly owned by Yukos, which was broken up and its principal assets sold off to satisfy tax debts allegedly totaling $28 billion. On December 19, 2004, Yuganskneftegaz was sold at a state-run auction, ostensibly to satisfy tax debts. The wining, and sole, bidder, was a little known Russian oil company called Baikalfinansgrup, who paid $9.7 billion. It was later revealed that the previously unheard-of Baikalfinansgrup is a group of Kremlin insiders headed by Igor Sechin, Deputy Head of the Presidential Administration and a close associate of President Putin. On December 22, 2004 Baikalfinansgrup was purchased by Rosneft, a wholly state-owned Russian oil company. Sechin has been Chairman of Rosneft’s Board of Directors since July 2004. The de-facto nationalization of Yuganskneftegaz was denounced by Andrei Illarionov, [ [http://www.mosnews.com/money/2004//12/28//illarionov.shtml] ] then a senior Putin economic advisor, as “the scam of the year.” [S. Goldman (2006) p.5]

Complex

Yuganskneftegaz is located in Khanty-Mansi Autonomous Okrug of Western Siberia. With 11.63 billion barrels (1.8 km³) of proven oil reserves, Yuganskneftegaz was the largest Yukos production complex. Yuganskneftegaz produces about one million barrels (160,000 m³) of crude oil a day, about 60% of Yukos total, and about 1.6% of the world total. Its main oil fields are Priobskoye, Prirazlomnoye, Mamontovskoye, Malo-Balykskoye, and Salymskoye. According to the annual audit by DeGolyer and MacNaughton, as of 31 December 2006, Yuganskneftegaz’ two largest fields, Priobskoye and Prirazlomnoye, contained 33% and 10.7% of Rosneft’s total proved reserves, respectively.

In 2005, Yuganskneftegaz built and began operating the Booster Pipeline Pumping Station (BPPS) at the Ust-Balykskoye field, six preliminary water removal units (PWRU) and two group pumping stations. In addition, it installed two electric substations and two overhead electric transmission lines stretching a total of 24 km. In 2006, Yuganskneftegaz began operating eight group pumping stations, an oil pumping station at the Prirazlomnoye field, another preliminary water removal unit, an external oil pipeline and six additional power generating stations. At the Priobskoye field, another oil production plant was set up and is now operating.

Yuganskneftegaz: Selected Fields

Notes:
1. USGS 2002 (Bbbl = "billion barrels of oil"). 2. LOF = large oil fields (>100 million barrels of oil equivalent): GOF = giant oil fields (>500 million barrels of oil equivalent).

Notes

References

*Stuart D. Goldman (2006) [http://fpc.state.gov/documents/organization/66504.pdf CRS Report for Congress]
*Bernard A. Gelb (2006) [http://fpc.state.gov/documents/organization/58988.pdf "Russian Oil and Gas Challenges"]
*Energy Information Administration (EIA). Russia Country Analysis Brief,
*TNK-BP. [http://www.tnk-bp.com/operations/exploration-production/projects/kovykta Kovykta Project] Viewed December 28, 2005
*Mevlut Katik (2003) [http://www.eurasianet.org/departments/business/articles/eav060203a_pr.shtml "Blue Stream’s Pipeline’s Future in Doubt Amid Russian Turkish Pricing Dispute"]
* [http://www.allbusiness.com/retail-trade/food-stores/4483360-1.html "Yukos Receives Bill for Nearly $1 Billion in Back Taxes"] October 2004
* [http://www.gateway2russia.com/st/art_260797.php "Gazprom to acquire Yuganskneftegaz buyer"] December 2004
* [http://www.rosneft.com/attach/0/10/74/RN-Magazine_5_eng.pdf "Rosnef Magazine" 2006]

External links

* [http://www.rosneft.com/ Rosneft site - English language]