Tatneft Tests Commercial Development of Extra-Viscous Oil

Tatneft continues to test advanced methods of producing extra-viscous oil.

2 pairs of horizontal wells were additionally completed and put into operation at Ashalchinskoye field and 27,150 tons of oil were produced in 2010. The daily production rate of the wells that have come to a stable mode of operation amounts to 30-32 tons. Drilling of 10 wells has been planned for 2011.

A distinguishing feature of developing extra-viscous oil deposits is a need to generate and inject steam into the reservoir, as well as increased requirements for construction of wells, which is reflected in higher production costs compared to the crude oil production from conventional crude oil fields. In addition, a special treatment and processing of this raw material is required.

Significant reserves of extra-viscous oil are essential resource assets of OAO TATNEFT and a promising area of increasing production. The Company has performed feasibility studies for development of 50 primary extra-viscous deposits with total reserves and resources of 200 million tons. Nevertheless, despite the availability of proven and efficient technologies for production of extra-viscous oil, under the current tax system, the economic efficiency of developing these deposits is very low. In 2011 the specialists of TATNEFT will carry out the work aimed at developing measures of the State support, including the ones in the form of tax incentives for their development.