ENERGY FOR PEOPLE - JSC Gazprom Neft

ENVIRONMENT, ENERGY SAVING,INNOVATIONEnergy for lifeENERGY FOR PEOPLEASSOCIATED GAS resources of Gazprom Neft SUBSIDIARIES, mlncubic metersSubsidiary 2007 2008 2009LSC Gazprom Neft-Noyabrskneftegaz,including Muravlenkovskneft 4247,9 3936,8 3543,2Gazprom Neft-Khantos LLC 515,9 477,0 543,5Gazprom Neft-Vostok LLC 121,7 155,0 195,7ASSOCIATED GAS utilization rate at GazpromNeft SUBSIDIARIES, %Subsidiary 2007 2008 2009LSC Gazprom Neft-Noyabrskneftegaz,including Muravlenkovskneft 39,9 52,6 55,3Gazprom Neft-Khantos LLC 6,0 8,4 13,3Gazprom Neft-Vostok LLC 16,0 18,0 14,7Source: Company DataENERGYRussian oil companies realizeda long time ago that it is a lot better toconstruct your own energy generatorsin the field. Developing local energysystems allows companies to cutenergy expenses and therefore lowerthe prime cost of oil production.In 2006, Gazprom Neft adopteda special program “Utilization andHigher Efficiency of Associated Gas”,which demonstrates that this is a priorityfor the Company. Under this programthe Company constructs so calledinternal generators (IG). At this point theoverall electrical power of Gazprom NeftOGs is 51 MW, the plan is to bring it upto 220 MW by 2013. In December 2009,the first unit (48 MW) of the gas-turbineelectrical plant (GTEP) at the Yuzhno-Priobskoye field was launched, this fieldis developed by Gazprom Neft-Khantos.The second unit (48 MW) of the Yuzhno-Priobskaya GTEP is being constructed.Yuzhno-Priobskaya GTEP is a “mediumgeneration” object. Specialists set thepower range for such objects at 100-500 MW (“small” generation is up to 100MW). The Priobskoye field is one of thekey assets of Gazprom Neft upstreamblock, it is the fastest growing asset. In2009, oil production here amounted to27% of the Company’s production.Such emphasis on energy projects isdue to the Company’s internal demand,regardless the energy system. Thereare also potential external prospectsfor developing this sector. The Yuzhno-Priobskoye field is only 70 km awayfrom the fast growing city of Khanti-Mansiysk, and Gazprom Neft’s GTEPmay become the energy sources for thecity.The Company’s overall energyconsumption dropped from 5,536 mlnkW/h in 2008 to 5,484 mln kW/h in 2009,so it decreased by 53 mln kW/h (1%)due to decreasing volumes of liquidproduction by 1.9% and oil — by 2.8%.The Company’s thermal energyconsumption went up from 314 th. Gcalin 2008 to 334 th. Gcal in 2009.Specific power consumption at JSEGazprom Neft has increased due to theincrease in operations, mostly resultingfrom energy consumption in thereservoir pressure maintenance systemat Gazprom-Khantos LLC.Gazprom Neft works on ensuringefficient use of energy. The Companyintroduces energy consumption controland reduction measures, developsand implements efficient energy useprograms.Implementation of the energy saving inoil production program saved 34 mlnrubles in 2006, 152 mln rubles — in2007, 880 mln rubles — in 2008, and1071 mln rubles — in 2009.118