The creation of Irkutsk Oil Company (also INK, INK Group) was preceded by many years of research and exploration of Eastern Siberia’s oil and gas resources during Soviet era. Back at that time, Eastern Siberia was a relatively new territory in terms of oil and gas resources. An official date of beginning of oil exploration is considered to be March 18, 1962, when the first oil gusher erupted in the village of Verkhnemarkovo in Ust-Kutsky district (Irkutsk region). This gave rise to more extensive exploration of the region’s hydrocarbon reserves, as a result of which many oil fields of Eastern Siberia were discovered, including Yaraktinskoye and Danilovskoye fields, which later became the main operating fields of INK.
Irkutsk Oil Company was founded in 2000. INK pioneered commercial oil production in Irkutsk region and produced its first 73 thousand tons of crude oil and gas condensate in 2003. In spite of a difficult period for the country’s economy at the beginning of 2000s, the Company successfully passed different stages of formation and development thanks to the initiative, creative approach, and dedication of its staff.
You can read more about the history of the company in the book “Oil: a big game for a small company” (ru).
Striving for leadership (2022)
- Construction of the Irkutsk Polymer Plant is more than halfway through. Total progress at the end of the year was 67.2%.
- JSC INK-Capital received a second-party confirmation by the Expert RA rating agency of its bonds being fully aligned with the transition bond principles set forth in The Climate Transition Finance Handbook by the International Capital Markets Association (ICMA) and the adaptation financial instrument criteria formulated in the Russian Federation Government’s Decree No. 1587 of September 21, 2021.
- The Decarbonization Strategy was adopted. A corporate system of monitoring, reporting and managing greenhouse gas emissions was implemented.
- Stage 2 of the gas project implementation is nearing completion including gas treatment facilities in the Markovsky and Yaraktinsky fields, а gas fractionation unit near Ust-Kut town, and a helium plant.
- JSC INK-Capital and LLC INK debuted as leaders in the first national ESG rating and the sustainable development rating compiled by the leading business media The Expert.
- In early June, LLC INK-Service drilling team set a new record. Crew 18 under the supervision of toolpushers Ruslan Akhmetov and Almaz Khusainov hit the previous record of daily meters drilled on well pad 88 of the Ayansky (Zapadny) subsoil block. The new benchmark is 1,022 m per day.
- Irkutsk Oil Company received awards in the contest “Russian Business Leaders: Momentum, Responsibility, Sustainability-2021”, appearing as the winner in the category Contribution to Sustainable Development of the Regions. The Company’s achievements were also acknowledged with a diploma in Corporate Environmental Responsibility. The contest is organized by the Russian Union of Industrialists and Entrepreneurs (RUIE).
- The corporate museum of Irkutsk Oil Company and the INK Group hit the podium in the fourth All-Russian Corporate Museums Contest.
- The Russian Ministry of Industry and Trade, Gazprom and Irkutsk Oil Company signed a tripartite road map for a project of extraction and processing formation brines to produce lithium components.
- JSC INK-Capital issued and published the first integrated annual report of the INK Group. The report includes, among other things, non-financial statements covering core aspects of sustainable development: environmental protection, respect for human rights, local community development and responsible business management.
Towards sustainable development (2021)
- The Irkutsk Oil Group adopted the Sustainable Development and ESG Policy – the framework document setting out the Group’s principles and focus areas in the field of sustainable development and ESG factors management. JSC “INK-Capital” Board approved eight out of 17 SDGs as the priority.
- A Sustainable Development and ESG Committee was formed under the Board of JSC INK-Capital. Its role is to preliminarily review and develop recommendations to the Board regarding the Group’s focus areas, strategy and development plans to achieve Sustainable Development, meet the SDGs and incorporate ESG aspects in its operations.
- INK was awarded the Badge of Environmental Culture established in the Irkutsk Region. The company’s management and personnel received a letter of appreciation from Igor Kobzev, Governor of the Irkutsk Region, for systematic implementation of corporate sustainable development principles and advanced ideas into the program of developing environmental culture in the region’s community.
- Irkutsk Oil Company (INK) General Director Marina Sedykh joined the board of trustees of the Save Lake Baikal environmental fund, financing environmental activities and raising awareness of environmental issues.
- Irkutsk Oil Company LLC launched the first solar-powered well. A linear telemechanic system, powered by a renewable energy source – solar batteries – was implemented at one of the well pads of the Yaraktinsky oil and gas condensate field.
- Irkutsk Oil Company LLC commissioned a highly automated cluster slider Bentec HR 5000 drilling rig in the Bolshetirsky subsoil block. The facility was tailor-made for the company, to operate in the harsh conditions of Eastern Siberia.
- Irkutsk Polymer Plant LLC (IPP, a project by Irkutsk Oil Company LLC) started the installation of large-size equipment and completed the rig-up of the first out of 45 heavy large-size items – a 54.6 m high and 271.5-ton quench water column for the integrated pyrolysis plant.
- Yakov Ginzburg, previously Deputy General Director for Economics and Finance, was appointed General Director of Irkutsk Oil Company. Marina Sedykh, head of Irkutsk Oil Company since 2000, will retain her positions on the Board of Directors of Irkutsk Oil Company and remain General Director of the holding entity – JSC INK-Capital, which she has been heading since its inception in 2008. Ms. Sedykh now focuses on implementation of the Group's sustainable development strategy, including health, safety, environmental and social issues.
- JSC INK-Capital (the holding entity of Irkutsk Oil Company) and the federal state budgetary organization Russian Energy Agency (REA) of the Ministry of Energy of the Russian Federation concluded an agreement on cooperation in the field of sustainable development and ESG practices.
- INK and Gazprom signed a Memorandum of Intent. According to the document, the parties are interested in implementing a joint project to extract and process formation brines (mineralized underground water) from Gazprom's Kovyktinsky field to produce lithium compounds and other valuable components.
- JSC INK-Capital issued the first transition bonds in Russia. The funds raised will be used to partially refinance the costs of the project of associated petroleum gas reinjection (cycling process) implemented since 2010.
A logistic megaproject
- Irkutsk Oil Company’s project of building Irkutsk Polymer Plant (IPP) gained approval of the Ust-Kutsky district community. Public hearings on the plant’s design documentation and environmental impact assessment (EIA) were held on January 23 in the Ust-Kut municipal administration.
- Irkutsk Oil Company completed installation of major process equipment items of the gas fractionation facility (GFF) in Ust-Kut as part of the gas reserves development project.
- Irkutsk Oil Company completed a mammoth task of transporting process equipment from South Korea to the construction site of Irkutsk Polymer Plant (IPP) in Ust-Kut. This is the largest scale logistic project involving transportation of large-size equipment in the region’s recent history. IPP equipment was supplied by global leaders in process equipment manufacturing for oil, gas and chemical industries in Japan, Korea and China. Delivery of the cargo took three months, on top of almost four years of preparations. Despite the challenges of the weather and the COVID-19 pandemic, the equipment was delivered on schedule.
- On June 9, prospecting well 16P of the Bolshetirsky subsoil block operated by JSC INK-Zapad produced a gas-oil mixture flow of 16.7 m3/day.
- INK LLC General Director Marina Sedykh was elected on the Executive Board of the Russian Union of Industrialists and Entrepreneurs (RUIE).
- INK-Service LLC conducting drilling of oil, gas and water wells celebrated its 15th anniversary.
Projects of the Future (2019)
- Irkutsk Oil Company was the first in Russia to use innovative rail tanks to transport liquefied petroleum gas (LPG). The tanks were made by Research and Production Corporation “United Wagon Company” (RPC UWC) by order of INK Group’s partner Texol, one of the largest private railway operators in the Republic of Kazakhstan.
- At Yaraktinsky field, a demethanizer column was installed, which forms a part of the сomplex gas processing facility (CGPF). The purpose of the column is to separate metane from the natural gas liquids (NGLs). It was a unique operation for Irkutsk region: for the first time, a 63-meter high and 170-ton column was installed using a caterpillar crane with a lifting capacity of 500 tons.
- The first service center in Eastern Siberia for repairing components of electrical submersible pump (ESP) units for oil and gas wells has been opened in Ust-Kut. The service center was opened at the initiative of Irkutsk Oil Company.
- At the Eastern Economic Forum in Vladivostok, Irkutsk Polymer Plant LLC (IPP LLC a wholly-owned subsidiary of Irkutsk Oil Company) and an affiliate of Toyo Engineering Corporation signed an agreement for the provision of construction management services.
- Irkutsk Oil Company introduced a cold recycling technology for road repair. Using the cold recycling technology, the Company plans to reconstruct its main service lanes.
- Irkutsk Oil Company installed a memorial sign to commemorate the 50th anniversary of the Yaraktinsky field.
- INK-SERVICE LLC, a drilling company of INK Group, signed a contract with Bentec LLC (a Russian subsidiary of German Bentec GmbH) for supply of seven stationary-cluster sliders.
- For the second year in a row, Irkutsk Oil Company became a leading company in the ranking of business entities of Irkutsk region in 2018. In addition, the Company won in the nomination “Petrochemical and Pharmaceutical Complex”.
- Gazprom and Irkutsk Oil Company expressed their interest in the joint development of fields in Krasnoyarsk region. The parties signed a respective Memorandum of Understanding at the IX St. Petersburg International Gas Forum.
- Irkutsk Oil Company held an architectural design competition to create concepts for a residential community area in the city of Ust-Kut, Irkutsk region. The Company company continued preparatory periodpreparation works for the construction of the polymer plant near Ust-Kut. The community area is to be completed in 2023 and is intended for the plant’s personnel and their families (3,000 people).
Continuing the Gas Project (2018)
- A subsidiary construction company INK-StroyNefteGaz LLC was established. The new company carries out construction of site and linear objects, well pads facilities construction, and engineering infrastructure.
- Marina Sedykh, the General Director of Irkutsk Oil Company, delivered a lecture ‘Energy increase Law’ at Skolkovo, Moscow School of Management on the use of soft tools in management of a large company.
- INK class was opened in Ust-Kut on the basis of a secondary school No. 9. The project is a part of training specialists for the oil and gas industry within the school-university-company education model.
- Irkutsk Oil Company and China Pingmei Shenma Energy Chemical Group signed an agreement to establish a joint venture for gas processing. Activities of the new joint venture should make a significant contribution to the development of economic cooperation between Russia and China.
- Irkutsk Oil Company and Toyo Engineering Corporation have agreed to build the first plant in Eastern Siberia to produce ethylene from ethane as part of the INK Gas project.
- Irkutsk Oil Company entered the first hundred of the 500 largest Russian companies according to RBC (98th place). The company became the only company from Irkutsk region in the top hundred.
- Irkutsk Oil Company has signed a contract with Cryo Technologies (USA) for the supply of equipment for the purification and liquefaction of helium. The expected output volume is 10 million liters per year.
- Irkutsk Oil Company became an absolute leader in the ranking of business entities of Irkutsk region in 2017. In addition, the company has won in the nomination “Petrochemical and Pharmaceutical Complex”.
- Irkutsk Oil Company and the Government of Irkutsk region signed four special investment contracts.
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.
- Irkutsk Oil Company signed a framework agreement with JOGMEC, under which a new joint venture, JSC INK-Krasnoyarsk was established. It is planned to conduct geological exploration works at five license blocks in Krasnoyarsk region.
- Irkutsk Oil Company 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.