OREANDA-NEWS. October 9, 2012. Alliance Oil Company's average daily oil production for the third quarter of 2012 amounted to 53,309 bopd compared to 45,662 bopd in the third quarter of 2011. In total, 4.9 mbbl were produced in the reporting period compared to 4.2 mbbl in the third quarter of 2011. Preliminary average daily refining volumes at the Khabarovsk refinery amounted to 84,580 bopd in the third quarter of 2012 compared to 77,442 bopd in the third quarter of 2011. In total, 7.8 mbbl were refined compared to 7.1 mbbl in the third quarter of 2011. Preliminary crude oil and oil product sales amounted to 4.9 mbbl and 8.1 mbbl respectively in the third quarter of 2012 compared to 4.0 mbbl and 7.1 mbbl in the third quarter of 2011.

The forecasted average upstream production for 2012 amounts to approximately 54,000 barrels per day and reflects adjustments of the fourth quarter drilling schedule. Supported by growing demand for oil products in the Russian Far East and completion of 7 new units at the Khabarovsk refinery, the forecasted average downstream production for 2012 has been increased to approximately 77,000 barrels per day[1].

Preliminary operating results in barrels per day:

Upstream

Downstream

2012

Production

Crude oil sales

Refining

Oil product sales

January

59,421

56,734

77,531

65,865

February

55,187

54,444

78,390

77,634

March

54,481

49,752

69,129

69,377

1st quarter

56,363

53,643

75,017

70,959

April

52,918

52,297

70,888

72,625

May

54,422

53,544

81,946

93,600

June

53,279

53,416

82,260

82,828

2nd quarter

53,540

53,086

78,404

82,912

July

53,732

57,533

83,643

84,496

August

53,473

50,306

84,809

88,790

September

52,725

51,099

85,417

89,565

3rd quarter

53,309

52,979

84,580

88,356

9 months

54,414

53,238

79,325

80,760

Upstream

Average daily oil production in the Timano-Pechora region amounted to 21,000 bopd in the third quarter of 2012 compared to 16,000 bopd in the third quarter of 2011. Oil production in the Volga-Urals region and Kazakhstan amounted to 23,000 bopd in the third quarter of 2012 compared to 21,700 bopd in the third quarter of 2011. Oil production in the Tomsk region amounted to 9,400 bopd in the third quarter of 2012 compared to 8,000 bopd in the third quarter of 2011. In the third quarter of 2012, 21 new wells were drilled. The average daily production at the Kolvinskoye field amounted to 11,400 barrels with a total of 1.1 mbbl produced for the quarter.

Downstream

In the downstream segment refining capacity has been increased to 90,000 bopd as 7 new units with upgraded utilities, infrastructure and offsites were launched in 2009-2012. Utilization of the refinery remained high due to strong demand for oil products both domestically and internationally. Wholesale and export volumes increased compared to the previous quarter.

Upstream and downstream production data for October 2012 will be disclosed on November 9, 2012. Third quarter financial results will be disclosed on November 21, 2012.