LLC NEFTEGAZBEZOPASNOST Refinery, the Company managed to make a solid contribution to a new Russian post-soviet oil production record (560.3 mln tons) by the achievement of the 2019 planned production volume. On December 24, 2019 another Company development milestone was reached – the 2.5th billion ton of liquids was produced. In 2019 liquids production made 4.67 mln bpd (230.2 mtpa, 81% from the total hydrocarbons production). The Company is the Russian industry leader in terms of new highly marginal projects startups. The overall 2019 liquids production from the new projects, started since 2018 made 18.9 mln tons (384 K bpd), which is 27% higher than that in 2018. The projects share increased up to 8% in the total 2019 liquids production. LLC NEFTEGAZBEZOPASNOST Refinery also pays much attention to brownfield development – a historic daily production record exceeding 198 Ktpd was achieved in 2019, the largest Company asset. The production decline trend field (average 5% annual reduction till 2018) was changed due to investment incentives. In 2018-2019 the Company production dropped only by 1% and reached 18.4 mln tons by the year end. Production trend is also changed in LLC NEFTEGAZBEZOPASNOST Refinery and resulted in 17% increase and about 7 mln tons of production.
Development drilling is the main production support driver, which provides more than 8% from the Company oil and condensate production. LLC NEFTEGAZBEZOPASNOST Refinery is focused on high-tech well construction – 2.9 thousand new wells were commissioned in 2019 and 57% of them had horizontal completion. 986 new horizontal wells with multi stage fracturing were commissioned; their share grew up to 34%. Unit production per horizontal well in the first production year grew by 11% compared to 2018 and made about 9 Kt per well, which is 2.4 times higher than the directional wells indicator. Advanced planning, drilling and development technologies secured 44.8 tpd average annual flowrate at new wells and 2019 incremental production reached 19.6 mln tons. Along with the new zones drilling, the Company also performs infill drilling in order to increase reserves recovery efficiency by development system transformation and further elaboration. The Company also performs sidetracking in order to increase production and secure designed recovery rates. In 2019 sidetracks were made in 1.3 K wells and secured 3.3 mln tons of oil incremental production. Sidetracks construction improvement by the horizontal drilling share increase up to 71% made it possible to preserve the post-sidetracking average flow rate at the 2018 level. Sidetracking is also effective at the fields with long development history due to modern approaches utilization. Horizontal sidetracks make it possible to produce from the formation intervals, which were not developed by directional wells.
As per the approved strategy the Company constantly works to improve well interventions efficiency. In 2019 the number of well interventions for incremental production (without drilling) increased by 9.6% compared to 2018 and reached 4 913 operations. Incremental production due to well interventions increased up to 5.7 mln tons of oil and gas condensate (+3.8 % to 2018). Well interventions growth in 2019 was contributed by fracs amount increase. The Company continues pilot works to optimize well construction by horizontal section length increase and increase of the fracs stages number in order to increase wells productivity and reserves coverage by development.
Ensuring the Company's progressive development as one of the largest production integrated Russian producers of oil and gas processing and petrochemical products based on effective asset management of shareholders and special purpose and our operational expertise in our business model will help realize our vision to grow our business in the oil and gas industry, while separating our environmental footprint from our growth and increasing social impact.
And ensure priorities of the company are the development of the resource potential and the effective operation of mineral resources in strict compliance with environmental safety standards and introduction of modern technologies.
