OREANDA-NEWS. July 08, 2011.
Oil Production
TATNEFT produced 2,130,339 tons of crude oil in June or 100.4 % versus June 2010, while the production from the beginning of the year amounted to 12,857,125 tons, which was 41.5 thousand tons more, than in 2010 (100.3 %). 12,572,671 tons of crude oil were delivered with the above-the-plan delivery amounting to 249,421 tons. TATNEFT Group of companies produced 12,981,195 tons of crude oil during the first six months of this year with the above-the-plan production amounting to 263,821 tons (102.1 %), reported the press-centre of TATNEFT.

Totally the oil companies of the Republic of Tatarstan produced 2,679,233 tons of crude oil in June, which made 100.4 % versus the same period of the previous year. The production for six months amounted to 16,132,541 tons or 100.3% versus the same period of the previous year.

Drilling
Traditional Drilling
The total penetration of new drilling for six months of 2011 amounted to 288.6 thousand meters (326.8 thousand meters in 2010):

- 237.1 thousand meters were drilled for TATNEFT (272.4 thousand meters in 2010), including 235.2 thousand meters of production drilling and 1.9 thousand meters of exploratory drilling;

- 23.5 thousand meters (10 thousand meters in 2010) were drilled for TATNEFT's subsidiaries, including 23.2 thousand meters of production drilling and 0.3 thousand meters of exploratory drilling;

- 28.0 thousand meters (44.4 thousand meters in 2010) were drilled for joint ventures and independent oil companies including 19.3 thousand meters of production drilling and 8.7 thousand meters of exploratory drilling.

Totally 193 wells (223 wells in 2010) were constructed and handed over to the customers:

- 143 wells (159 wells in 2010) were delivered to TATNEFT, including 143 production wells;

- 18 wells (6 wells in 2010) were delivered to TATNEFT's subsidiaries, including 16 production wells and 2 exploratory wells;

- 32 wells (58 wells in 2010) were delivered to joint ventures and independent oil companies including 28 production wells and 4 exploratory wells.

Drilling in the Operating Stock
The penetration of sidetracking and horizontal wellbores for six months of 2011 amounted to 21.3 thousand meters (16.4 thousand meters in 2010):

- 12.5 thousand meters (11 thousand meters in 2010) were penetrated for TATNEFT;

- 8.8 thousand meters (5.4 thousand meters in 2010) were penetrated for joint ventures and independent oil companies.

Totally 43 wells (42 wells in 2010) were delivered to the customers:

- 31 wells (29 wells in 2010) were delivered to TATNEFT;

- 12 wells (13 wells in 2010) were delivered to joint ventures and independent oil companies.

36 drilling crews performed traditional well drilling operations in 2011. 10 drilling crews were engaged in drilling lateral wellbores and lateral horizontal wellbores. Penetration per one crew in 2011 amounted to 8,380 meters, while in 2010 the penetration per crew amounted to 8,401 meters.

30.2 thousand meters were drilled outside the Republic of Tatarstan. 40.6 thousand meters were penetrated in horizontal wellbores and bottomhole splitters.

Well Repairs
763 well remedial operations were performed in June 2011 with a number of well remedial operations performed during six months amounting to 3,812 which was 549 wells less than in 2010 году (4,361 wells during 6 months in 2010). The number of well remedial operations reduced by 14.6 % (from 3,688 down to 3,150), the number of injection wells workover operations increased by 7.8 % (from 451 up to 486).

18 wells have been repaired outside the Republic of Tatarstan since the beginning of the year with 6 wells for Tatneft-Samara and 2 wells for OOO Tatneft-Severny.

The workover operations were performed at 1,259 wells during six months of 2011 (255 wells in June), including: production string sealing in 198 wells, shutting-off individual layers and recompletion in other intervals in 130 wells; transfer of wells into different categories and wells completion for injection in 66 wells; failure liquidation and cleaning of the electrical cable and bottom hole areas in 124 wells and physical liquidation and re-liquidation in 21 wells.

395 wells were worked over with application of coil tubing (87 wells in June), including 68 wells worked over through the annulus.

Formation hydrofracking operations were performed in 157 wells (31 wells in June), which is 25 % more than for the similar period of 2010 (126 wells during 6 months of 2010). The incremental crude oil recovery volume amounted to 5 million 116 thousand tons.

21 small diameter holes were drilled and completed for TATNEFT during six months of 2011. At present drilling of one slim hole is in progress for each of the following NGDUs: Almetyevneft, Jalilneft and Yamashneft.

Works on oil recovery enhancement were performed at 1,100 wells (259 wells in June), including chemical treatment methods applied at 641 wells (148 wells in June). The incremental oil production volume resulting from the application of the enhanced oil recovery methods amounted to 2 million 624 thousand tons of crude oil with the chemical methods accounting for the production of 1,240 thousand tons.

Bottomhole area treatment operations with application of TATNEFT's technologies were performed at 1,474 wells during six months of 2011.