Igor Sechin discusses Rosneft with Putin

 

The President of the Russian Federation Vladimir Putin held a working meeting on Wednesday with the Head of Rosneft Igor Sechin, who reported on the Company’s 2014 operational results to the President of the country.

The overall hydrocarbons production at year-end was approximately 252 mln toe, which is amounts to a 4.6% organic growth compared to 2013 levels. Daily production level exceeds 5 mln boe, which is by one third higher than ExxonMobil’s level. Gas production increased by 35% - to 56.7 bcm. Liquid hydrocarbon production made around 205 mln tons. Insignificant reduction of production is attributable to efficiency improvement activities and development of in-house service capabilities. Rosneft’s own drilling rig fleet increased from 81 to 213, at the same time the number of own drilling crews increased from 51 to 200. In 2015 Rosneft plans to continue this work and further expand this figure to 230, which will allow meeting the demands of main projects using own resources.

At year-end ABC1+C2 hydrocarbon reserves of the Company amounted to 129 billion of boe (approximately 17 billion toe), investments in geological exploration exceeded twofold 2013 levels. All license obligations are being fulfilled.

As to results of 2014, the company maintained its operating costs per barrel of production at $4 per boe. The achievement was reached thanks to high-performance measures carried out in the Exploration and Production area. This level is 3-4 times more efficient than the operational expenditures level of leading international oil and gas companies.

Primary oil refinement at Company’s assets in 2014 topped 100.1 mln t. 87 mln t were refined at Russian facilities, organic growth made 2 mln t or 2%.

The Company made the most significant contribution to the strengthening of the national currency, which experienced a speculative attack. Throughout the year Rosneft sold at the exchange market USD 93 bln, which was a record-breaking currency-supportive result among Russian exporters. At the same time the Company repaid the loans for a total amount of USD 24.5 bln, which helped to cut the leverage.

Rosneft maintains the status of the largest taxpayer in the Russian Federation that accounts for around a quarter of all tax revenues of the Russian budget. The Company paid around 3 trillion rubles to budgets of all levels, which amounts to more than 57% of Rosneft earnings and exceeds the rate of the last year for 11.8% (2.7 trn rubles in 2013).