The creation of Irkutsk Oil Company was preceded by many years of research and exploration of Eastern Siberia’s oil and gas resources. Eastern Siberia is a relatively new petroleum province. Furthermore, it is considered to have been officially discovered on March 18th, 1962, when the first oil gusher erupted in the village of Verkhnemarkovo in Ust’-Kut district (Irkutsk region). This gave rise to more extensive studies of the region’s hydrocarbon reserves, thanks to which the largest petroleum fields of Eastern Siberia, such as the Yaraktinsky and Danilovsky sites , were discovered.
In 2000, Mikhail Buynov, his son (the current acting President and beneficial owner), Nikolay Buynov, and a few other partners, mostly prominent geologists and specialists formerly employed by the state geological company “VostSibNeftegazGeologiya”, formed Irkutsk Oil Company. That geological company was responsible for the most discoveries in Eastern Siberia, but had fallen apart with the collapse of the Soviet Union. Irkutsk Oil Company acquired shares of two oil-producing units - JSC “Ust’KutNeftegaz” (2001-2007) and LLC “Danilovo” (2001-2004) from various investors on the open market and paid out their outstanding debts.
In 2001, Irkutsk Oil produced its first 30 thousand tons of crude oil and condensate. INK pioneered oil production in Irkutsk region and was the largest local oil producer from 2000 to 2009. This was a difficult period for country’s economy, but the company remained successful due its high performance, efficient management, and innovative approach to looming problems.
New joint exploration project (2017)
- Irkutsk Oil Company and Japan Oil, Gas and Metals National Corporation (JOGMEC) celebrated the anniversary of cooperation in Moscow and at production facilities of the company in Irkutsk region.
- For further development of cooperative relationship between Irkutsk Oil Company and JOGMEC, the parties agreed the basic ideas for new joint exploration project in East Siberia for at least 5 new blocks, and signed the Heads of Agreement.
- Irkutsk Oil Company (INK) discovered two new oil fields at the Kiysky and Srednenepsky blocks in the Irkutsk region.
- The State Committee for Reserves (aka ‘Rosnedra’) approved the initial oil and associated gas reserves of the Verkhnetirsky field.
- Irkutsk Oil Company started gas injection at Danilovsky field. Gas re-injection will allow the utilization of up to 60% of the total gas solution produced at the Danilovsky field.
Production record (2016)
- Irkutsk Oil’s production exceeds 23,500 tons a day.
- Irkutsk Oil Company and the Government of the Republic of Sakha (Yakutia) signed a social and economic partnership agreement for the first time.
- Irkutsk Oil completed construction of three additional storages, 20,000 cubic meters each, at the Markovsky’s uploading facility. Therefore, the capacity of the uploading facility of pipeline connected to ESPO increased by almost three times - to 95,000 tons.
Developing Oil Production and Transportation (2015)
- JSC “INK-Zapad”, a joint venture among Limited Liability Company “Irkutsk Oil Company” (INK), ITOCHU Corporation, INPEX CORPORATION and Japan Oil, Gas and Metals National Corporation (JOGMEC), commences pilot production of Ichyodinskoye oil field discovered in 2012.
- INK celebrated its 15th year in business.
- INK-Service reached its drilling milestone: 1 Million meters drilled.
- The Museum of INK’s History officially opens.
- INK has sharply increased the capacity of its pipelines connected to the ESPO. The new pipe boasts a diameter of 720 millimeters, enabling the company to transport up to 14 million tons of crude oil in a single year.
- The Irkutsk Oil Company was ranked 105th in the rating, according to RosBusinessConsulting.
- Irkutsk Oil’s cumulative production exceeds 15 million tons.
- Irkutsk Oil began to carry out pilot testing of new facilities, which will process and treat sour oil and gas.
Gas project launch (2014)
- INK Group produced 4 million tons of oil and gas condensate, increasing its hydrocarbon production by 38% compared to 2013.
- Irkutsk Oil Company was named the best company in Irkutsk regions’ Fuel and Energy Complex for the second consecutive year.
- For the first time, INK was included in the list of Top-30 Russian fastest growing companies and received the honorary second place in this listing . The rating is conducted by Russia’s most prominent business news agency RosBusinessConsulting (RBC).
- Two new license blocks in in the Republic of Sakha (Yakutia) – Verhnetirsky and Verhnenepsky – were acquired by INK.
- The State Committee for Reserves (aka Rosnedra) approved the initial reserves of the Ayansky (West) license block, with the respective license holder being LLC Tikhookeansky Terminal, a subsidiary of Irkutsk Oil Company.
- INK’s headquarters were relocated into a new office under the new address Bolshoy Liteyniy Prospect, 4, situated in the business center Irkutsk-City
- Cumulative production of oil reached ten million tons
- Irkutsk Oil intensified the implementation of its gas project and began ground preparations for the gas pipeline to be installed between the oil treatment facilities at Yaraktinsky field and the processing facilities of the city of Ust’-Kut
Integration of the World’s Leading Technologies (2013)
- The Group produced almost 2.9 million tons of oil and gas condensate, increasing its hydrocarbon production by 28% compared to 2012 and by 2.4 times compared to 2011.
- Irkutsk Oil Company won third place in the category “Small/Medium Company of the Year” in the 2013 opinion poll of industry analysts organized by Russia’s leading oil and gas analytical and consulting agency RusEnergy.
- For the first time, Irkutsk Oil Company was included in Russia’s 400 largest companies by sales volume, achieving number 147. The rating was conducted by agency Expert.
- World Finance named Irkutsk Oil the Best Independent Oil and Gas Company in Eastern Europe for the second consecutive year.
- Europe’s leading staffing agency, Superjob, ranked the Group as one of the top most desirable employers among more than 850,000 companies.
- INK Group received an integrated management certification under two international standards: ISO 14001: 2004 + Cor 1: 2009 (Environmental Management System); BS OHSAS 18001: 2007 (Occupational Health and Safety Management System).
- Large private Japanese companies ITOCHU Corporation and INPEX CORPORATION became shareholders of the Japanese Southern Sakha oil company Ltd. (JASSOC), which owns 49% of CJSC “INK-Zapad” shares.
- Irkutsk Oil Company’s team won the first B2B professional competition in the region’s oil producers - "Best in Profession”.
- As a result of a transaction between the European Bank for Reconstruction and Development (EBRD) and Goldman Sachs International (GSI), EBRD’s stake in the Group decreased to 4.4% and GSI became a shareholder with a stake equal to 3.75% of INK-Capital’s charter capital.
- The company used coiled tubing for work-over at Yaraktinsky field for the first time in order to enhance oil recovery.
New Discoveries (2012)
- RusEnergy ranked Irkutsk Oil the best in the “Small/Medium-Size Company of the Year” category.
- World Finance, a leading financial magazine, named Irkutsk Oil Company "The Best Independent Company in Eastern Europe of 2012".
- The Russian-Japanese Joint Venture INK-Zapad contoured three new fields: Tokminsky, Ichyodinsky (within the West-Yaraktinsky license block), and Bolshetirsky field within the same named license block.
- Re-injection of associated petroleum gas (APG) to the formation began at Yaraktinsky field.
- INK acquired the Kiysky license block in Irkutsk region and Verkhnedzhunkunsky and Yuzhno-Dzhunkunsky license blocks in the Republic of Sakha (Yakutia) at state-run auctions.
- INK won EBRD’s 2012 award for excellence in environmental and social performance.
- State-owned JSC “Rusgeology” and Irkutsk Oil Company signed an agreement on cooperation.
Tie-in to ESPO (2011)
- The cumulative amount of oil shipped via ESPO reached one million tons on November 10, 2011.
- The Company began shipping hydrocarbons to port Kozmino via ESPO on January 18th.
- Thanks to the completion of the "Yaraktinsky field - ESPO" pipeline and the consecutive growth of production, the second construction stage of the Oil Treatment Facility at Yaraktinsky's field began.
- Five new licenses blocks were purchased, including the Ayansky (West), Byuksky, Suntarsky, Srednenepsky and Yalyksky license blocks.
Gas-cycling Process (2010)
- The cumulative amount of oil shipped from the railroad terminal in Ust’-Kut reached two million tons.
- Peak production of 14,000 bpd was reached.
- A new field at Severo-North Mogdinsky license block was discovered and cleped after Boris Sinyavsky.
- The first stage of the Gas Cycling Facility at the Yaraktinsky field was launched, which became the first project of its kind in Russia.
- Several gas monetization projects were avidly researched.
- Two new fields within Angaro-Ilimsky and Naryaginsky license blocks, were discovered
- The construction of a pipeline to ESPO began.
First -Million Tons of Oil (2009)
- The Multilateral Carbon Credit Fund agreed to buy carbon credits from a subsidiary of Irkutsk Oil.
- A Memorandum of Understanding was signed between Sumitomo Corporation and Irkutsk Oil Company.
- Transneft granted Irkutsk Oil access to its ESPO trunk pipeline.
- The Russian Government approved four core Irkutsk Oil fields for preferential export duty.
- Marina Sedykh was recognized with EBRD’s ‘Women in Business’ award.
- Cumulative production of oil and condensate reached 1 million tons.
- The Company signed an agreement with JOGMEC to develop two license blocks: Bolshetirsky and West Yaraktinsky. JSC “INK-Zapad”, a new joint venture, was established solely for the block development.
- The first stage of the Oil Treatment Facility at Yaraktinsky field was commissioned.
- EBRD provided the Company with a 90 million euro loan for boosting production and developing infrastructure.
- A Memorandum of Understanding was signed with JOGMEC for a collaborative study on the applicability of the Japan-GTL process to Irkutsk Oil’s natural gas resources.
New Shareholder (2008)
- 8.15% stake was acquired by the European Bank for Reconstruction and Development (EBRD).
- West-Ayansky field was discovered.
- The Company began insuring most of its risks under the comprehensive energy package insurance.
Partnership with Japan (2007)
- Irkutsk Oil Company signed Memorandum of Understanding with RUSAL.
- The pipeline between Markovsky field and the railroad terminal in the city of Ust’-Kut was completed, which became the first oil pipeline in the region.
- JSC “INK-Sever” was established with Japanese JOGMEC for exploration of the North Mogdinsky block.
- A social and economic partnership agreement with the Government of Irkutsk region was signed.
Growing the Resource Base (2006)
- DeGolyer & MacNoughton began the first audit of Irkutsk Oil’s reserves.
- Irkutsk Oil Company signed a Memorandum of Understanding with Gazprom to supply natural gas from Markovsky and Ayansky fields.
- A Group’s subsidiary, INK-NefteGasGeologia, acquired Potapovsky, Bolshetirsky, West Yaraktinsky, Angaro-Ilimsky and Naryaginsky license blocks.
- The company began preparing its financial statements under IFRS.
In-house Drilling Company (2005)
- A Group’s subsidiary, INK-NefteGasGeologia acquired Ayansky field and Ayansky license block at a state-run auction.
- INK created its own full-service oil field unit, INK-SERVICE.
- OJSC «SNGK» (Siberian Oil and Gas Company), operating Naryaginsky and Angaro-Ilimsky fields, was acquired.
First Profit (2004)
- Some 134,000 tons of oil and condensate were produced.
- In June, the company made its first profit.
First Pipeline (2003)
- Completion of the Yaraktinsky – Markovsky pipeline made year-round production at both fields possible.
- Total production of oil and condensate exceeded 73,300 tons.
- The ecological unit of Irkutsk Oil Company was created.
Production Growth (2002)
- Irkutsk Oil began building the Yaraktinsky – Markovsky pipeline.
- Over 49,400 tons of oil and condensate were produced.
Beginning of Operations (2001)
- Several wells were re-activated at Yaraktinsky, Markovsky, and Danilovsky fields.
- Irkutsk Oil Company paid out outstanding debts of JSC “Ust’KutNeftegaz” and LLC “Danilovo”, which allowed investing in oil field development and infrastructure.
- The first 30,000 tons of oil and condensate were produced.
Formation of Irkutsk Oil Company (2000)
- Irkutsk Oil Company was established on November 27th uniting several small oil and gas producers operating in Eastern Siberia.
Danilovsky Field Discovered (1977)
- Danilovsky field was discovered in Katangsky district, Irkutsk region.