INK Contributed 6.7 Billion Dollars, in Taxes, to the Irkutsk Region’s Government in the First Half of 2017
Tax payments of INK and its subsidiaries (collectively, INK Group) to the consolidated budget of the Irkutsk region in the first half of 2017 amounted to 6.7 billion rubles, an almost 150% increase relative to the same period in 2016.
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 on May 19, 2017.
Spanning May 16 to May 19, the polymer plant in city of Ust-Kut expected a lengthy analysis process, one that examined both the environmental and the socioeconomic impact of the facility.
Irkutsk Oil Company and Japan Oil, Gas and Metals National Corporation (JOGMEC) signed Heads of Agreement on the new joint exploration project in East Siberia on April 27, 2017 in Moscow.
Irkutsk Oil Company will contribute more than 100 million rubles to various social programs in the Irkutsk region
Irkutsk Oil Company has signed an additional agreement based on social and economic cooperation with the Irkutsk regional government of 2017. For the past few years, the Irkutsk Oil Company has been sponsoring various regional programs and events, but this year the donations will exceed100 million rubles. The Group implements major projects in four municipal districts - Ust-Kutsky, Nizhne-Ilimsky, Kirensky, and Katangsky.
The chairman of Irkutsk Oil Company, Nikolay Buynov, participated in the largest annual industry forum, CERAWeek, held in Houston, the US energy capital. He spoke at the panel on March 7th along with the Minister of Energy of the Russian Federation, Mr. Alexander Novak, and other leaders of the Russian oil industry. Nikolay Buynov presented Irkutsk Oil Company as one of the forerunners in the sector of independent oil-producing companies in Russia.
Associated gas re-injecting into formation was initiated at Danilovsky gas condensate field on February 3 when compressor unit K-2.1 at booster pumper station of Ariel JGK/4-4 Waukesha L7044GSI started operating in the testing mode.
On December 16 in Tokyo, during the visit of President of the Russian Federation Vladimir Putin, Japan Oil, Gas and Metals National Corporation (JOGMEC, President Keisuke Kuroki) and Irkutsk Oil Company (INK, Chairman of the Board of Directors Nikolay Buynov) signed a Memorandum of Understanding to negotiate on future joint exploration project.
The women’s bandy competition (for women under the age of 17) will be held in 2017 through February 22-26th in Irkutsk and Shelekhov. The Irkutsk Oil Company contributed five million rubles to the competition this year. The company has sponsored the same bandy competition three years ago, but it was for men.
August production reached a record of 750,000 tons while eight months’ accumulation production topped 5 million tons, a 50% increase relative to the same period in 2015.
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.
The INK Group produced 3.55 million tons of crude oil and condensate in the first half of 2016, (a 42 % increase in comparison to the same period of 2015). Similar to previous years, Yaraktinsky field was the main source of production.
In an effort to achieve the foregoing result since September 2014, INK Group constructed well pads, increased the number of producing wells, and implemented new technology to enhance its oil recovery to further develop field infrastructure.
Recently, the Markovsky power plant added four new gas-powered electric generators of Caterpillar design, all of which make over 1 megawatts. The three existing generators, capping at 1 MW each, now act as back-ups. The upgraded facility has the potential to generate over 7 megawatts.
The Elena Bulgakova Volleyball Tournament, named in honour of the eponymous trainer, took place in Irkutsk during the 13th and 14th of February in the stadium of Irkutsk National Technical Research University (IRNITU). INK organized the event and its team won the men’s competition.
INK took the onus of sponsoring the Siberian Youth Boxing Championship, a tournament for aspiring boxers between the ages of 15-16. On February 14th, in sports hall “Trud”, the Championship concluded with the decisive victory of the Irkutsk regional team, which boasted a victory of 4 gold medal, one silver medal, and three bronze medals.
Irkutsk Oil Company discovered a new gas condensate field at the Byuksky block in the Republic of Sakha (Yakutia). After a report on the area was examined, the State Committee for Reserves approved results and booked reserves on December 28th, 2015. The field reserves have been estimated to contain up to 13.5 billion cubic meters of gas.
INK’s official website, www.irkutskoil.ru, landed 2nd place in a competition ranking the best corporate websites of Siberia as of 2015.
The Irkutsk Oil Company won the auction for the right of geological studies and resource exploitation on Verkhnenepsky (Northern) block located in the Irkutsk region. The auction took place on December 18, 2015, in the Department of Geology and Licensing in the Irkutsk region.
Dmitry Medvedev officially lauded the Irkutsk Oil Company on the recent start of production from in the Ichyodensky oil field
On November 30th, the Prime Minister of the Russian Federation, Dmitry Medvedev, congratulated INK and its respective partners with the recent launch of Ichyodensky oil field (set in the Ust-Kutsky district of the Irkutsk region), its discovery taking place in 2012.
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. The oil field is located within Zapadno-Yaraktinsky license block (Ust-Kutsky district and Katangsky district of Irkutsk region).
Two bronze compositions, dedicated to workers of INK, were erected at the entrance of the INK headquarters.
The opening ceremony, accompanying the raising of the bronze sculptures, took place on November 26th, at the entrance of the INK headquarters. The statues were dedicated in honour of the company’s 15th anniversary, and the 10th anniversary of its subsidiary, “INK-Service”.
The title of “Best Oil Company in Eastern Europe” was bestowed upon INK, making it the recipient of the award for the fourth consecutive year
The World Finance award is a testament to INK’s leadership in the Russian oil sector, a reminder that INK’s human talent, innovative approaches, and stable expansion outshines its competition. In 2015, in spirit of the previous statement, INK increased its oil production by 140% (in 9 months), advanced its infrastructural development, and expanded its potential in the oil market.
The total amount of drilling in the last decade, executed by the operating and exploration team of INK-Service (INK’s subsidiary), reached 1 million meters. This milestone was always in mind. In 2005, when the first oil well opened, a mere 3,000 meters were drilled. In the following year, two more wells were drilled, and the year after that brought forth three more. Steadily, the amount of rigs in operation increased and with it the total meters drilled.
On October 27th, INK unveiled its newest addition - The Museum of INK’s History. This novel museum showcases the development of the company as the East Siberian upstream producer. In it one will find a wide variety of INK related exhibitions, including archival documents and photos, samples of the rock cores, parts of machinery used for oil drilling, and documentaries concerning the company's history. All this will exhibit the successful past of INK and show the road to its bright future.
The Russian agency "Expert" published its rating of the 600 largest companies by revenues in the “Commersant” daily. Oil and gas companies revenues comprised 29.6% of the sales volume, with Irkutsk Oil Company placing 115th on the list.
INK Group has produced 4 million tons of oil and condensate in the first 9 months of 2015, a 140% increase in comparison to the same period in 2014. The entirety of the hydrocarbon production of the company originated from a total of eight fields.
The most prominent Russian business news agency, RosBusinessConsulting (RBC), published a list of the Top 500 largest companies in Russia, the ranking determined by the total revenue and profit.
Irkutsk Oil has officially connected a new (and larger) diameter pipe to the main ESPO pipeline system. This tie-in to the ESPO pipeline was made near the Transneft’s pump station "#7". The operation took place from the 15th to the 17th of September, during the ESPO’s planned shutdown.
Once again, Irkutsk Oil Company proves its unwavering commitment to the community and environment of the Irkutsk region. When fires began to rage over the forests of the Olkhonsky, Kachugsky, and Bayandaysky districts, the forest destruction was greatly minimized by Irkutsk Oil Company’s prompt donation of over 500,000 rubles to the regional forest-fire fighting team.
Irkutsk Oil Company produced over 2.5 million tons of oil and condensate in the first half of 2015, a 1.4 fold increase relative to the same period in 2014.
Irkutsk Oil Company cumulatively produced its 15-millionth ton of hydrocarbons on June, 5 2015 since its inception in November 2000.
INK Group produced 1.25 million tons of oil and condensate in the first quarter of 2015, a 45 % increase to the same period in 2014. This growth is attributed to the increase in the number of producing wells and the advancement of implementing recovery rate technology.
Irkutsk Oil, in the beginning of December 2014, began to carry out pilot testing of new facilities at the Yaraktinsky field. The new project, which will process and treat sour oil and gas, includes an oil treatment unit and a gas sulfur removal facility. The gas sulfur removal facility is already under construction meanwhile a few of the equipment modules have yet to arrive.
Irkutsk Oil Company is on track for the construction of the gas processing plant and corresponding infrastructure by October 2015. The general contractor reported that the development of the 3.6 million nm³/year gas processing plant at Yaraktinsky field has surpassed 65% completion and the construction of the liquid petroleum gas (LPG) uploading terminal and storages (in Ust’-Kut) is more than 30% complete.
In 2014, Irkutsk Oil Company produced over 4 million tons of oil and gas condensate, a 38% increase compared to the previous year. In 2015, the company plans to increase its production of liquid hydrocarbons by 50%, aiming to produce 6 million tons. In November 2014, the company’s cumulative production of liquid hydrocarbons since inception exceeded 12 million tons.
In December 2014, All-Russian Society for Nature Conservation presented special awards to its partner organizations during its end-of-year meeting. Irkutsk Oil Company was granted a diploma for its large contribution to the organization and its nature conservation events.
Under an agreement with the regional government, Irkutsk Oil Company provided 300,000 rubles for funding projects of the Russian Geographical Society’s East Siberian branch. Most of these funds will finance a project in a Youth Sports School in Zheleznogorsk-Ilimsky city named "The Paths of Siberian Explorers".
During the winter period, which in northern regions can last up to six months, Irkutsk Oil Company’s employees and equipment regularly come to help remote villages. For instance, the company often clears roads of snow, delivers fuel to allow continuous operation of social institutions, and provides villages with much needed electricity. This winter, for example, specialists from Irkutsk Oil Company urgently restored engineering systems in a school in Bur village (Katanga region) and in a hospital in Verhnemarkovo village (Ust’-Kut region).
Irkutsk Oil Company and the Government of the Republic of Sakha (Yakutia) began drafting an agreement on cooperation
Evgeniy Milov, Irkutsk Oil Company’s Deputy General Director, met with the First Deputy Prime Minister of the Republic of Sakha (Yakutia), Pavel Marinychev in Yakutsk on December 11th, 2014.
Irkutsk Oil Company’s Executives Nikolay Buynov and Marina Sedykh named Entrepreneurs of the Year by RBC
RosBussinessConsulting, Russia’s leading informational and analytical media group, named Irkutsk Oil’s CEO Mrs. Marina Sedykh and Board of Directors’ Chairman Mr. Nikolay Buynov as the Entrepreneurs of the Year.
Irkutsk Oil Company was included in Russia’s top five environmentally responsible oil companies by the “Common Sense” project on December 9th, 2014. The project is organized by the World Wildlife Fund (WWF) and the Creon group with the participation of National Rating Agency.
On November 25th 2014, Irkutsk Oil Company won an auction for the right to explore and develop hydrocarbons on Verhnetirsk and Verhnenepsk’s fields in Irkutsk region.
Irkutsk Oil Company was named the best company in Irkutsk regions’ Fuel and Energy Complex for the second consecutive year.
Irkutsk Oil Company warns its counterparties, business partners and contractors that a twin company called ‘Irkutsk Oil Company, Ltd.’ was established on October 20, 2014 in Moscow. The company was established at the following address: Moscow, B. Ordynka st, 43/1 with INN 3808066311
Irkutsk Oil was included in the list of Russian Top-30 of fastest-growing companies and received the honorary second place in this list. This annual rating is organized by the most prominent Russian business news agency RosBusinessConsulting (RBC). The journalists who conducted this research approved the benevolent influence that fast-growing companies hold over old industries, blossoming sectors, and new markets.
INK Group has produced 2.8 million tons of crude oil and condensate in the first 9 month of 2014, a 34% increase in comparison to the same period of 2013. Like in previous years, this growth is due to the increase of producing wells and application of advance technologies such as artificial lift and fracturing. Moreover, INK Group progressed development by fracturing certain low-permeable rocks and stimulated oil production from areas where traditional technologies were helpless.
Irkutsk Government’s Investment Committee has recently upheld Irkutsk Oil’s gas project in Ust’-Kut. This gas processing project has previously been supported by various federal and regional initiatives introduced in 2013-2014. Gaining regional status enables the company to enjoy additional tax preferences. Irkutsk Oil’s gas project, estimated at 120 billion rubles, has many stages, including the construction of gas processing and polyethylene plants in city of Ust’-Kut. Moreover, the company plans to build a gas-fired power plant to supply electricity and steam for new facilities.
In the recent Interdepartmental Commission for Protection of the Baikal, taking place on July 25, 2014, Irkutsk Oil Company announced its plans to build an LNG plant capable of producing up to 84,000 tons of LNG annually. INK aims to complete the foundry by 2018. The plant itself will begin operations near the city of Ust’-Kut in Q4 2017. Moreover, the plan is to supply LNG to the East Siberian regions, specifically Zabaikalsk municipality. It is fair to note, that the Irkutsk region has closed the agreement for the further development of the sector with the latter.
The newly constructed office center “Astra”, Irkutsk Oil Company’s current headquarters, received the Commercial Real Estate Federal Award 2014 in category of ‘Business Center of B Class’. Astra office complex was built by “Activ” group with the involvement of Irkutsk Oil Company itself. The annual commercial Real Estate Awards was established in 2003 by the industry business community initiative and has already proved itself as a prestigious title. Winning the Awards is viewed by INK as an important achievement as it helps with the promotion of the company image on both the Russian and international market.
In July 2014, the construction unit of INK began ground preparations for the gas pipeline tack, which will be installed between the oil treatment facilities at Yaraktinsky field and the processing facilities of the city of Ust’-Kut. It measures at a grand total of 205 kilometers, making it the most aspiring gas pipeline venture in the region yet. It begins in the Yaraktinsky field, emerges near the Verkhnemarkovo village, runs along the existing INK oil pipeline and road «Viluy», crosses the Nizhnyaya Tunguska, the Malaya Tira and the Bolshaya Tira River, along with various passages and the ESPO pipeline.
The company’s management reached a collective decision to aid Arshan’s community in its aim to rebuild itself after a severe mudslide leveled a large part of the city. The chief of medical personnel of Arshan resort, Mr. Vladmir Songolov, reached out to INK asking the company to support the reconstruction of the damaged city. Without much hesitation, INK gladly donated 300,000 rubles to the weakened community. Mr. Vladmir Songolov was pleasantly surprised at the speed of the altruistic decision and expressed his gratitude toward the company.
INK Group produced 1.785 million tons of crude oil and condensate in the first 6 months of 2014, a 29.4% increase contrasting that of the same period in 2013. Most of the production (1.591 million tons or 89% of the total volume) was retrieved from Yaraktinsky field. This growth bloomed thanks to the increase in producing wells, integration of the world’s leading technologies specializing in oil recovery, and the gradual introduction of new fields into operation.
Irkutsk Oil Company’s headquarter has been relocated into a new office under the address of Bolshoy Liteyniy prospect, 4, situated in the Irkutsk business center, known as ‘Irkutsk-City’. In a mere two weeks, over 250 tons of office equipment, furniture, documents, and personal belongings have been moved into the new properties. Moreover, the transportation and collection of furniture was tasked to three respectable contractors who completed their job efficiently. It is fair to note that a fair percentage of the furnishings was taken and split, a portion sent to the Ust’-Kut branch and a portion given to charity (orphanages, poor families, etc.).
In June 2014, 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. These reserves are currently estimated to contain 0.26 million tons of oil. The license for the Ayansky (West) license block was received in March 2010. . Located in the northern part of the Irkutsk region, this block borders the Ust’-Kutsky, Kirensky, and Katangsky districts. The total area of the license block measures 162.7 square kilometers.
In 2014, Irkutsk Oil Company plans to expand its total volume of drilling in all fields and licensed areas by an increased 70% over the last year’s measurements, resulting in a volume of up to 300 thousand meters per year. Of the 300 thousand meters, almost 90% of it, equivalent to about 267 thousand meters, will be accomplished by CJSC “INK-Service”, the in-house drilling company.
Irkutsk Oil Company’s cumulative liquid hydrocarbon production exceeded 10 million tons in May 2014. For many years the Company has been steadily increasing its oil and condensate production and expanding its number of both producing and perspective license blocks and fields.
The Irkutsk Oil Company’s specialists completed a fire fighting operation at the troubled underground landfill of sawmill waste in Ust’-Kut. The fire started in October 2013. By the beginning of April, the area on fire had spread to over 2 hectares. The landfill area was rented out by Irkutsk Oil Company in February 2014 as a future site for one of the facilities of the future gas chemical complex plant.
“Irkutsk region’s oil and gas condensate fields’ development must be multifaceted,” said Nikolay Buynov, Chairman of the Board, during the Irkutsk-based conference entitled “Development of Oil and Gas Resources of East Siberia and the Far East”.
Irkutsk Oil Company has adopted Hazard and Operability Analysis (HAZOP)* to identify the potential risks and operability problems of a new gas processing plant being built in Yaraktinsky field. The new plant will have an operating capacity of 3.6 million cubic meters per day.The company decided to conduct HAZOP studies at an early stage of the gas project, and plans to conduct several more studies at more advanced stages.
The XXXIV World Championships for Bandy had ceremonially concluded in Irkutsk, proving to be the biggest sporting event of the year 2014 in the Irkutsk region. We congratulate the Russian victors, who faced off against the Swedish team, beating them 3:2, and claiming the title of World Champions the second time in a row.
World Finance names Irkutsk Oil as Best Independent Oil and Gas Company in Eastern Europe for second consecutive year
The notorious financial magazine World Finance is a leading financial and business publication, produced bimonthly by World News Media from its global headquarters in London. According to the publisher, the audience of this magazine is 120,000 people. Begun in 2007, the World Finance Awards annually celebrate achievement, innovation and brilliance in different areas. The Oil and Gas nomination has been presented since 2010. International experts analyze development progress and activities of companies from varied spheres/sectors, then choose the best of them under the criteria of modernization success, production growth, market share, and relationships with partners and customers, segregating industry by regions
Irkutsk Oil’s Mr. Grigoriy Ivanov became one of the 227 torchbearers who participated on November 27th, 2013 in the relay in Irkutsk. He ran across a road that passed over the Irkutsk main dam. On the total, the participants bore the torch that day for 34 km and the day culminated with a big concert.
On November 13th 2013, Irkutsk Oil Company and all companies which are part of the 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). IQNet and DQS Holding GmbH, the world leaders in industrial certification, attested this certification.
On September 24, 2013, Mr. Kawano Hirobumi, President of Japan Oil, Gas and Metals National Corporation (JOGMEC), Japanese state run company, announced that the joint project between JOGMEC and INK in Eastern Siberia (INK-Zapad) had moved to a new stage after joining of ITOCHU Corporation and INPEX CORPORATION, two major Japanese private companies, to the project as shareholders of JASSOC, which is a subsidiary of JOGMEC holding 49% in INK-Zapad
INK-Capital is pleased to announce changes in the shareholders' structure. As a result of the transaction between the European Bank for Reconstruction and Development (EBRD) and Goldman Sachs International (GSI), the EBRD’s stake has decreased to 4.4% and GSI has become a shareholder with a stake equal to 3.75% of INK-Capital’s charter capital.
On February 19, 2013, Irkutsk Oil Company signed an addendum to the social economic agreement with the Irkutsk regional government. In 2013 INK plans to donate over 26 million rubles to different charitable projects. The support would mostly benefit local communities in the north of Irkutsk region, where the Company is operating.
RusEnergy, the Russian leading information agency ranked Irkutsk Oil Company as №1 in the category of “the Small/medium sized company of the year”. According to analysts of the “RusEnergy”, Irkutsk Oil Company is an exceptional company in the Russian oil and gas industry. For many years the company has been working in East Siberia, patiently re-investing its net revenues in exploration and production.
One of the leading financial magazine "World Finance" awarded "Irkutsk Oil Company" as "Best independent company in Eastern Europe 2012".
At the end of August 2012, during the official visit to Ust’-Kut district, Mr. Sergey Eroshchenko visited the Yaraktinsky oil and gas condensate field. He noted that Irkutsk Oil Company has already begun a project of gasification which is ready to partake in the East Siberian and Far Eastern Development Program.
Reduction of air emissions and concern for the environment has always been the focus of Irkutsk Oil Company. The Company’s oil production at Yaraktinsky field generates associated petroleum gas (APG), which is partially used as fuel for heating and power generation, but is partially flared. In 2009 with the support of the European Bank for Reconstruction and Development (EBRD), Irkutsk Oil found a way to utilize associated gas – re-inject it into the resorvoir and began building the required gas cycling facility in order to reduce emissions from gas flaring and later sell emission reduction units (ERUs).
The European Bank for Reconstruction and Development (EBRD) Sustainability awards 2012 took place on 17-20 of May during EBRD’s Annual Meeting and Business Forum in London. EBRD promotes environmental and social sustainability through investments in projects, financial intermediaries and technical cooperation programs. But unlike most international financial institutions, the Bank reports on the impact of these investments as well as recognizing its clients’ progress in promoting environmental and social responsibility.
On March 5, 2012, state-owned JSC “Rusgeology” and Irkutsk Oil Company signed the Agreement on Cooperation. Under the Agreement, parties aim to create and adopt new technologies in exploration and production in the East Siberia.
On the 29th of April 2011 Irkutsk Oil Company signed an agreement with Irkutsk branch of the Russian Children’s Foundation. INK then committed to buy equipment for the daycare, build a playground in Verkhnemarkovo village and renovate building of elementary school #4 in the Kirensky district. At the expiration of the agreement all commitments were fully met. Irkutsk Oil Company actually spent 990 million vs. 800 million originally budgeted as an additional playground was bought for a city of Ust’-Kut and few other daycare facilities were sponsored.
On the 10th of November 2011 Irkutsk Oil Company supplied first million tons of oil to ESPO (East Siberia – Pacific Ocean) pipeline. The company’s president Mr. Nikolay Buynov and Mrs. Marina Sedykh, CEO greeted employees with this important milestone achievement.
Irkutsk Oil Company won the state-run auction on exploration and further development of the Sredne-Nepsky block. The block is located in Katangsky district of Irkutsk region and has an area of 4,580 square km. Estimated resources under C3 category are 14.5 million tons of oil while resources under D1 and D2 category are 44.9 and 11.3 million tons of oil correspondingly. Estimated resources of gas under D1 and D2 category are 50.3 and 7.7 bcm correspondingly.
INK Group produced 827,100 tons of crude oil and condensate in the first 9 months of 2011, a 77% increase compared to the same period of 2010. Most of production (761,300 tons or 92% of the total) was originated at Yaraktinsky oil and gas condensate field. The Yaraktinsky field has also enjoyed the largest percentage increase of 87.7% compared to three quarters of production in 2010. Oil production at Yaraktinsky field has been constantly increasing every month (from 61 thousand tons in January, to 107 thousand tons in June). Growth of production has been achieved by increase in number of producing wells and putting a new booster pumping station into operation. Crude oil is treated at Yaraktinsky field at oil treatment facility (OTF) and delivered to the ESPO pipeline.
Nikolay Buynov has been awarded with a medal at Baikal Economic Forum to recognize contribution of Irkutsk Oil Company to welfare of Irkutsk region
On September 13, 2011 Mr. Nikolay Buynov, President and Chairman of Board of Directors of Irkutsk Oil Company has been awarded with a special medal to recognize a significant role of the company in the economic development of the region. The awarding ceremony took place during the Baikal Economic Forum and was in connection with celebrations of the city’s 350th anniversary. The honorable medal was given to 430 citizens of Irkutsk, those who contributed largely to the economic, cultural or social development of the region. Among the nominees were government officials, local congressmen, members of the region’s Council, as well as the region most famous scientists, artists, and businessmen.
As of July 11th, 2011, Irkutsk Oil Company has delivered its 500th thousand ton of oil into Transneft’s ESPO system. The Company hopes that another important milestone of 1 million tons of crude oil uploaded into ESPO would be reached by year end. The construction of 62 km connecting pipeline from Yaraktinsky field to ESPO with capacity of 3.5 million tons per year was completed in the end of 2010. The pipeline was put into operation on January 18, 2011 and its first ton of oil was delivered via ESPO pipeline to port Kozmino in February of this year.
INK Group produced 503,600 tons of crude oil and condensate in the first 6 months of 2011, a 66.2% surge compared to the same period of 2010. Most of production (446,300 tons or 89% of the total) was originated at Yaraktinsky oil and gas condensate field.
Construction of the Orthodox Christian Chapel is initiated on June 22, 2011 at the permanent workers camp of the Yaraktinsky field. Georgiy Belov, a priest erected a cross at the place of future construction.
Irkutsk Oil Company and the Irkutsk’s branch of the Russian Children Fund (RCF) signed a cooperation agreement. The document was signed by CEO of INK, Mrs. Marina Sedykh, and the chairman of the fund, Mrs. Svetlana Kulinich.
Residents of Katangsky District approved the construction of a pipeline which will connect the Danilovsky and Yaraktinsky fields in the course of public consultations which were held on April 25, 2011 in the city of Erbogachen. These public consultations focused on environmental issues, but discussions showed that residents were also interested in various economic issues such as employment and support of north indigenous people of the Katangsky district involved in hunting and fishing. Representatives of local municipalities, school districts, police and other public sectors made various comments during the consultations.
Irkutsk Oil Company has purchased an ambulance car for Katangsky hospital under the Agreement on Social and Economic Cooperation between the company and Irkutsk Regional Government. A vehicle is on the way to Erbogachen village now.
In response to the tragic events in Japan, Irkutsk Oil Company management and employees reacted by making donations to organizations providing relief and emergency services to victims of the earthquake and tsunami. The initiative called for donating one day’s worth of pay. Donations were collected in the headquarter office as well as in field divisions. So far over 200 employees have made a contribution of some RUR 300,000 (over $10,000). The company matched the employees’ donations with RUR 450,000 (over $15,000). Many employees sent their own letters of support and condolences to their colleagues at JOGMEC.
Irkutsk Oil Company produced 252.9 thousand tons of oil and condensate in the 1st quarter of 2011, a 61% increase over the same period of the last year. An increase was reported at all of the company’s producing fields including Yaraktinsky (206,000 tons or 63.3% increase) and Danilovsky (35,200 tons or 36.6% increase). The company produced 5,100 tons of oil and condensate at Markovsky and 3,900 tons at West Ayansky fields in the 1st quarter alone. The company’s target is to reach 1 million tons of production in 2011, which would be a 1.5 increase compared with last year's production. Increase in production is attributed to an extensive drilling program and an application of advanced drilling techniques.
Irkutsk Oil Company has initiated a month-long health, safety, and environment (HSE) campaign to improve performance in this area at the company’s fields. On Earth Day, June 5, 2011, a special committee will award employees with the best results from March 21 to April 20 in compliance with HSE requirements. HSE-related issues are of the highest priority for Irkutsk Oil Company. Annual costs for environmental protection operations are some 30 million rubles (Over $1,000,000).
During the week of March 9, 2011, representatives of Irkutsk Oil Company visited several sparsely populated areas of the municipality of Nepsky – Tokma, Nepa and Ika – and attended local community meetings to listen to local residents’ proposals and concerns and report them to the company’s management. Discussions showed that residents were mostly interested in HSE-related issues, employment, and sponsorship. Representatives of Irkutsk Oil Company explained that HSE-related issues are of the highest priority for the company, which is implementing two action plans on environmental protection and cooperation with stakeholders.
Irkutsk Oil Company has signed a social and economic partnership agreement with the Government of Irkutsk region. The document was endorsed by Mr. Vladimir Pashkov, Vice Governor of Irkutsk region, and Mrs. Marina Sedykh, CEO of Irkutsk Oil Company. Pursuant to the list of social activities, the total INK’s sponsorship in 2011 is planned to be 21.5 million rubles, which is 1.8 higher than the amount of sponsorship in 2010. Key activities will be performed in three municipalities – Ust’-Kutsky, Kirensky and Katangsky.
In end of 2010 Irkutsk Oil Company has completed the construction of a 62 km pipeline connection from Yaraktinsky field to Transneft’s ESPO pipeline with the annual throughput capacity of 3.5 million tons. The total cost of the pipeline and deliver-acceptance facility construction exceeded 2 billion rubles.
On December 13, 2010, public consultations related to the environmental impact assessment (EIA) of implementation the development projects of Irkutsk Oil Company’s subsidiaries, ‘INK-Zapad’, and ‘INK-Sever’ were held with locals in the Erbogachen village.
On December 17, at the Second International Energy Forum in Moscow, Irkutsk Oil Company presented the report on ‘Cycling-process as the first commercial trial in Russia’.
During the period from January to October this year, Irkutsk Oil Company produced 523,790 tons of oil and condensate, some 1.8-fold increase over the same period of last year. This increase was due to the commissioning of new producing wells and applying of the artificial lifting technology to the wells which have been drilled in the past.
At a joint press conference in Irkutsk, Mr. Hirobumi Kawano, President of Japan Oil, Gas and Metals National Corporation (JOGMEC), and Mr. Nikolay Buynov, Chairman of Irkutsk Oil Company, confirmed test production of oil and gas at three licensed blocks in the north part of Irkutsk Region where they jointly performed geological survey (“GS”).
JSC “SNGK”, a subsidiary of Irkutsk Oil Company has obtained a license for exploration and production at the Angaro-Ilimsky oil and gas condensate field. The field is located in the Ust’-Udinsky and Bratsky districts of in the Irkutsk region of Eastern Siberia, Russia.
JSC “UstKutNeftegas”, a subsidiary of Irkutsk Oil Company has applied for a tender held by Sberbank in relation to sale of ERUs (Emission Reduction Units) under the Kyoto Protocol. JSC ‘UstKutNeftegaz’ application is related to its joint implementation (JI) project titled ‘Associated Petroleum Gas Flaring Reduction at the Yaraktinsky oil and gas field’, with 588,000 tons of CO2 to be reduced in 2011-2012. Sberbank is Russia’s national dealer in carbon credits.
For the past 9 months of 2010, Irkutsk Oil Company increased oil and condensate production to 467 300 tons, an 82% increase over the same period of last year.
Today, September 15, Irkutsk Oil Company shipped its second million ton of production from the railroad terminal in Ust’-Kut. For almost ten years, Irkutsk oilmen have been working hard to achieve this remarkable result.
On September 2, just a few days before the celebration of Oilman Day in Russia, Marina Sedykh, Chief Executive Officer of Irkutsk Oil Company, met Sergei Kulygin on the ‘Strategy of Success’ TV show aired on AIST-TV (Irkutsk). Marina Sedykh was asked about various issues, including commissioning of the Russian spur of the Russia-China oil pipeline, re-injection of gas into the formation at the Yarakta field, new job creation, and social and economic cooperation.
A gas cycling facility, including a gas re-injection compressor plant, has successfully been put into operation at the Yarakta field. The facility was commissioned by AG Equipment Company, a US-based equipment manufacturer, and EnergoService Engineering Center, an installation contractor.
Bureau Veritas Certification (Bureau Veritas) completed determination procedures on the project design document for the joint implementation (JI) project entitled “Associated Petroleum Gas Flaring Reduction at the Yarakta Oil Field, Irkutsk region, Russia” and performed by JSC “UstKutNeftegas”, a subsidiary of Irkutsk Oil Company.
In the first half of 2010, Irkutsk Oil Company increased oil and condensate production to 303,000 tons, an 88.7% increase over to the same period last year.
Irkutsk Oil Company and Japanese Trading Company Marubeni (Marubeni Corporation) sign Memorandum of Understanding
On Tuesday, July 10, Irkutsk Oil Company LLC and the Japanese trading company Marubeni (Marubeni Corporation) signed a Memorandum of Understanding. The document was signed by Ms. Marina Sedykh, Irkutsk Oil Company’s General Director, and Mr. Shoichi Ikuta, Executive Officer, on the behalf of Marubeni. Mr. Shoichi Ikuta stated during the signing ceremony that the Memorandum with Irkutsk Oil Company is the first stage of Marubeni Corporation‘s activity in Irkutsk region.
During celebration of the 85th Anniversary of the All Russia Association of the Blind on April 12, 2010, Marina Sedykh, Chief Executive Officer of Irkutsk Oil Company, was awarded a Certificate of Merit by the Irkutsk Regional Government. Alexander Moiseev, Deputy Chairman of the Government of Irkutsk Region, presented the award.
Dmitry Mezentsev, Irkutsk Region Governor, and Marina Sedykh, General Director of INK, sign cooperation agreement
On April 6, 2010, INK and the Irkutsk Region government signed an addendum to their agreement on social and economic cooperation. In 2010, Irkutsk Oil Company (INK) plans to transfer 450 million rubles (approx. $150,000) by way of taxes and dues to the budget.
Bureau Veritas starts determination (independent expert review) of joint implementation project (JIP) on Associated Gas Utilization at the Yaraktinskoe field
Bureau Veritas started determination (independent expert review) of the joint implementation project (JIP) on Associated Gas Utilization at the Yaraktinskoe field, which is planned to be implemented within the frameworks of the Kyoto Protocol. The contract of sale and delivery of emission reduction units released as a result of the implementation of gas re-injection project at the Yaraktinskoe field was signed between UstKutNeftegaz (subsidiary of IrOC) and Stichting Carbon Purchasing Intermediary in August, 2009.