Geologic exploration and production of hydrocarbons (upstream)

The Upstream segment is the key segment for the Zarubezhneft JSC Group of Companies. The Company’s strategic development is based on improvement of asset performance and development of new prospective projects.

CONSOLIDATED INDICATORS FOR THE SEGMENT

The 2018 revenue level was 45% higher than for the previous year. The main factor behind the increase of this indicator was the growth of the average oil price (in 2017 – 16 thous.RUB/t, in 2018 – 23.3 thous.RUB/t) and the increase in sales from the main Russian assets – LLC JV RUSVIETPETRO and LLC ZARUBEZHNEFT Dobycha Kharyaga. On the part of JV “Vietsovpetro”, the significant growth of revenues is due to the increase of the contract price to 75 USD/bbl from May to November 2018 which resulted in a decrease of the JV’s share retained for costs recovery and, therefore, in profit growth.

Revenue, bln RUB

CURRENT PORTFOLIO OF ASSETS/PROJECTS IN THE SEGMENT

In 2018, Zarubezhneft Group of Companies owned 16 licenses, of which 9 were for prospecting and exploration of hydrocarbons, 2 licenses - for prospecting and evaluation of hydrocarbon deposits and 5 licenses - for geological survey, exploration and production of hydrocarbons. In the reporting year, the licenses of ULN 09135 NE of Slavkinskoye, ULN 14582 NE of Kondakovskoye were renewed for 20 years and NRM 16129 NE of Kharyaga field – for 15 years.

EBITDA, bln RUB

Operator/mineral developer Projects Life cycle stage
SOCIALIST REPUBLIC OF VIETNAM
JV “Vietsovpetro” Block 09-1, oil fields: Exploration and Production
White Tiger, Dragon, White Hare, Polar Bear, White Cat
Block 04- 3, Production
oil and gas condensate Thien Yng - Mang Kau Field
Block 09-3/12 Exploration
Block 12/11 Exploration
Block 16-1/15 Exploration
PVEP Block 42 Exploration
VRJ (Block 09-3) Conjoint Plot of Block 09-3 and 09-1 South Dragon - Sea Turtle Exploration and Production
REPUBLIC OF CUBA
Zarubezhneft JSC subsidiary Boca de Jaruco oil field Enhanced oil recovery
RUSSIAN FEDERATION
LLC “JC “RUSVIETPETRO” Central Khoreyver Uplift Block 1, North-Khosedayu oil field Production
Central Khoreyver Uplift Block 2, oil fields: Visovoye, Verkhnekolvinskoye Exploration and Production
Central Khoreyver Uplift Block 3, oil fields: West-Khosedayu, Sikhoreyskoye, East- Sikhoreyskoye, North-Sikhoreyskoye Exploration and Production
Central Khoreyver Uplift Block 4, oil fields: Syurkharatinskoye, North-Oshkotynskoye, Puseyskoe, South-Syurkharatinskoye, Urernyrdskoye, East-Yanemdeyskoye Exploration and Production
Zarubezhneft-Kharyaga production LLC Kharyaga oil field Production
Orenburgnefteotdacha JSC Pashkinskoye oil field Exploration and Production
Chernovskoye oil field Production
Ul’yanovskneftegaz LLC Ruzhevskoye oil field, Slavkinskoye oil field, Kondakovskoye oil field, Sulakskoye oil field Production
Radischevskiy plot, Yuzhno-Pcheliniy plot Exploration
North-Karasevskoye Petroleum Enterprise LLC Lutseyakhskoye oil field Exploration
Геологоразведка и добыча углеводородов