INK increased production by 77% to 827 k-tons in the first three quarters of 2011

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.

The second largest producing field, the Danilovsky, produced 35.9 tons of crude oil in the first 9 months of 2011. Production is trucked to Yaraktinsky field but new oil pipeline from Danilovsky is being constructed, which would ensure all-year-round production on the field. Absence of pipeline is a serious bottleneck for Danilovsky field.

Last year the first stage of gas treatment facility with a gas-cycling unit was commissioned and as a result over 93 million cubic meters of natural gas have been re-injected since beginning of 2011.