Slavneft Hires Schlumberger for Wells Service Ops in Russia

Slavneft and Schlumberger Oilfield Services will begin field operations under the framework of a master service agreement signed in December 2002.

According to this agreement, Schlumberger will be directly involved in a horizontal and directional drilling program and will also provide the full range of reservoir stimulation and production enhancement services for new and existing wells.

"The signed agreement will give us access to the best worldwide oil production practices," said Yury Sukhanov, president of Slavneft. "The extensive experience of Schlumberger, which is known for its achievements in oil recovery enhancement, enables us to maximize our potential more efficiently."

In 2003 Slavneft is planning to apply these technologies in oilfields of the Megion region in an effort to increase production by 13.2%. By the end of 2003, Slavneft plans to raise the average daily flow rates for Megion and other Slavneft fields in West Siberian to 44.7 thousand tons from 42.0 thousand tons at the beginning of the year.

The cooperation between Slavneft and Schlumberger will involve the creation of joint teams of engineers to maintain close contact among geologic and technical departments. In addition, this cooperation between the two companies will facilitate training of the Slavneft staff in advanced oilfield technologies.

Patrick Schorn, Schlumberger general manager for Russia, Sakhalin, said, "This agreement will not only allow Slavneft to develop a new drilling program but also to develop and apply technology that will significantly accelerate its return on investment. Schlumberger is dedicated to delivering the best technology to achieve Slavneft's success."