Tyumen Completes Successful Drilling Campaign at Samotlor

Tyumen Oil has successfully drilled 10 development wells in the Ust Vakh area of the Samotlor oil field in West Siberia. One of the new wells produces at 2500 barrels per day and two of the new wells produce over 1500 barrels per day; the highest individual well rates registered at Samotlor since 1980. TNK used directional drilling to reach the Ust Vakh area in the southeast part of Samotlor, and plans to have a total of 15 wells completed by the end of 2002.

" Samotlor field extension at Ust Vakh is a good example of an existing upside of mature fields in Russia", says Igor Dibtsev, TNK senior vice-president for upstream, " Combination of the Russian expertise and advanced Western technologies will enable us to increase production rates at Samotlor by over 40% in the next five years".

In 2003 the company plans to drill an additional 25 producing and water injection wells in the Ust Vakh area. The next phase of the development will require the use of extended reach drilling techniques. Western service companies providing technology for the Ust Vakh development are Halliburton and MI Drilling Fluids, a subsidiary of Smith/Schlumberger.

Samotlor has proven recoverable reserves of 3.7 billion barrels audited by Miller and Lents. At present the field produces 336,000 barrels per day. In 2000 TNK became the first Russian company to receive a $600 million credit from US Eximbank to rehabilitate Samotlor and upgrade the Ryazan refinery.