Alliance Oil boosts production 10%, refining 13% in 2012
MOSCOW. Jan 11 (Interfax) - Alliance Oil Company increased crude production by 10% to 19.7 million barrels (53,900 bpd) in 2012 and boosted refining by 13% to 29.3 million barrels (80,100 bpd), the company reported.
The company thus met its production target for 2012, and surpassed its refining target (77,000 bpd).
Average daily production grew in all regions where the company has a presence, with the biggest increase seen in Timano-Pechora, where output rose from 19,665 bpd to 22,825 bpd. Average daily production at the Kolvinskoye field in Nenets Autonomous District amounted to 12,996 barrels, and production for the year totalled 4.8 million barrels.
Sales grew by 10% to 19.3 million barrels of crude oil and 11% to 29.9 million barrels of oil products.
Alliance Oil released a new upstream strategy at the end of 2012. The company plans to increase production of hydrocarbons by about 10% per year in 2013-2015, including a joint venture with Repsol. The company expects to achieve the production growth in the next few years thanks to the Kolvinskoye field and assets acquired in 2012.
Alliance Oil also completed a new geological model of Kolvinskoye. The field's geology turned out to be more complex that previously thought, and its proven and probable reserves might be reduced by 5% from the figures initially announced.
The company's strategy to 2015 also calls for the expansion of the resource base in Timano-Pechora, and development of new assets in Nenets and its gas business. Alliance Oil expects to begin producing gas at the beginning of 2013, and expects that in future it will account for up to 20% of total production.
Alliance Oil Company was founded in 2008 following the merger of Oil Company Alliance and Sweden's West Siberian Resources (WSR). As a result, Alliance Group became the controlling shareholder in Alliance Oil. The company engages in geological exploration and production of hydrocarbons in Komi, Tomsk and Samara Regions, Tatarstan, and Kazakhstan. The company controls Khabarovsk Oil Refinery and owns a major filling station chain in the Far East.
