Yuganskneftegaz
Encyclopedia
Yuganskneftegaz is a wholly integrated subsidiary of Rosneft
that owns and operates the second largest oil production complex in Russia
. It was formerly the most important production subsidiary of Yukos
, but was expropriated by the Russian government and given to Rosneft, a state-owned company.
, which was broken up and its principal assets sold off to satisfy tax debts allegedly totaling $28 billion. On 19 December 2004, Yuganskneftegaz was sold at a state-run auction, ostensibly to satisfy tax debts. The winning, and sole, bidder, was a little known Russian oil company called Baikalfinansgrup
, who paid $9.7 billion. It was later revealed that the previously unheard-of Baikalfinansgrup is a group of Kremlin
insiders headed by Igor Sechin
, Deputy Head of the Presidential Administration and a close associate of President Vladimir Putin
. On 22 December 2004, Baikalfinansgrup was purchased by Rosneft, a wholly state-owned Russian oil company. Sechin has been Chairman of Rosneft's Board of Directors since July 2004. The de-facto nationalization of Yuganskneftegaz was denounced by Andrei Illarionov, then a senior Putin economic advisor, as "the scam of the year."
of Western Siberia
. With 11.63 Goilbbl of proven oil reserves
, Yuganskneftegaz was the largest Yukos production complex. Yuganskneftegaz produces about 1 Moilbbl of crude oil a day, about 60% of Yukos total, and about 1.6% of the world total. Its main oil fields are Priobskoye, Prirazlomnoye, Mamontovskoye, Malo-Balykskoye, and Salymskoye. According to the annual audit by DeGolyer and MacNaughton
, as of 31 December 2006, Yuganskneftegaz' two largest fields, Priobskoye and Prirazlomnoye, contained 33% and 10.7% of Rosneft’s total proved reserves, respectively.
In 2005, Yuganskneftegaz built and began operating the Booster Pipeline Pumping Station (BPPS) at the Ust-Balykskoye field, six preliminary water removal units (PWRU) and two group pumping stations. In addition, it installed two electric substations and two overhead electric transmission lines stretching a total of 24 kilometres (14.9 mi). In 2006, Yuganskneftegaz began operating eight group pumping stations, an oil pumping station at the Prirazlomnoye field, another preliminary water removal unit, an external oil pipeline and six additional power generating stations. At the Priobskoye field
, another oil production plant was set up and is now operating.
Notes:
1. USGS 2002 (Bbbl = "billion barrels of oil"). 2. LOF = large oil fields (>100 million barrels of oil equivalent): GOF = giant oil fields (>500 million barrels of oil equivalent).
Rosneft
Rosneft is an integrated oil company majority owned by the Government of Russia. Rosneft is headquartered in Moscow’s Balchug district near the Kremlin, across the Moskva river...
that owns and operates the second largest oil production complex in Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
. It was formerly the most important production subsidiary of Yukos
YUKOS
OJSC "Yukos Oil Company" was a petroleum company in Russia which, until 2003, was controlled by Russian oligarch Mikhail Khodorkovsky and a number of other prominent Russian businessmen. After Yukos was bankrupted, Khodorkovsky was convicted and sent to prison.Yukos headquarters was located in...
, but was expropriated by the Russian government and given to Rosneft, a state-owned company.
Background
Yuganskneftegaz began operations in 1964, and saw significant upgrades in the 1990s that are responsible for bringing its production to their current levels. Yuganskneftegaz was formerly owned by YukosYUKOS
OJSC "Yukos Oil Company" was a petroleum company in Russia which, until 2003, was controlled by Russian oligarch Mikhail Khodorkovsky and a number of other prominent Russian businessmen. After Yukos was bankrupted, Khodorkovsky was convicted and sent to prison.Yukos headquarters was located in...
, which was broken up and its principal assets sold off to satisfy tax debts allegedly totaling $28 billion. On 19 December 2004, Yuganskneftegaz was sold at a state-run auction, ostensibly to satisfy tax debts. The winning, and sole, bidder, was a little known Russian oil company called Baikalfinansgrup
Baikalfinansgrup
Baikalfinansgrup is a Russian limited liability company owned by Rosneft Oil Company. It is best known as the company that won the December 19, 2004 auction for a 76.79% share in Yuganskneftegaz, formerly the core production subsidiary of Yukos Oil Company...
, who paid $9.7 billion. It was later revealed that the previously unheard-of Baikalfinansgrup is a group of Kremlin
Kremlin
A kremlin , same root as in kremen is a major fortified central complex found in historic Russian cities. This word is often used to refer to the best-known one, the Moscow Kremlin, or metonymically to the government that is based there...
insiders headed by Igor Sechin
Igor Sechin
Igor Ivanovich Sechin is a Russian official, considered a close ally of Vladimir Putin. Sechin is often described as one of Putin's most conservative counselors and the leader of the Kremlin's Siloviki faction, a statist lobby gathering former security services agents...
, Deputy Head of the Presidential Administration and a close associate of President Vladimir Putin
Vladimir Putin
Vladimir Vladimirovich Putin served as the second President of the Russian Federation and is the current Prime Minister of Russia, as well as chairman of United Russia and Chairman of the Council of Ministers of the Union of Russia and Belarus. He became acting President on 31 December 1999, when...
. On 22 December 2004, Baikalfinansgrup was purchased by Rosneft, a wholly state-owned Russian oil company. Sechin has been Chairman of Rosneft's Board of Directors since July 2004. The de-facto nationalization of Yuganskneftegaz was denounced by Andrei Illarionov, then a senior Putin economic advisor, as "the scam of the year."
Complex
Yuganskneftegaz is located in Khanty-Mansi Autonomous OkrugKhanty-Mansi Autonomous Okrug
Khanty–Mansi Autonomous Okrug , also known as Yugra, is a federal subject of Russia . Population: The people native to the region are the Khanty and the Mansi, known collectively as Ob Ugric people...
of Western Siberia
Siberia
Siberia is an extensive region constituting almost all of Northern Asia. Comprising the central and eastern portion of the Russian Federation, it was part of the Soviet Union from its beginning, as its predecessor states, the Tsardom of Russia and the Russian Empire, conquered it during the 16th...
. With 11.63 Goilbbl of proven oil reserves
Oil reserves
The total estimated amount of oil in an oil reservoir, including both producible and non-producible oil, is called oil in place. However, because of reservoir characteristics and limitations in petroleum extraction technologies, only a fraction of this oil can be brought to the surface, and it is...
, Yuganskneftegaz was the largest Yukos production complex. Yuganskneftegaz produces about 1 Moilbbl of crude oil a day, about 60% of Yukos total, and about 1.6% of the world total. Its main oil fields are Priobskoye, Prirazlomnoye, Mamontovskoye, Malo-Balykskoye, and Salymskoye. According to the annual audit by DeGolyer and MacNaughton
DeGolyer and MacNaughton
DeGolyer and MacNaughton is a petroleum consulting company based in Dallas, Texas, with offices in Houston, Moscow, and Calgary.DeGolyer and MacNaughton was founded in 1936 by Everette Lee DeGolyer and Lewis MacNaughton. In 2004, it acquired Calgary-based Outtrim Szabo Associates forming its...
, as of 31 December 2006, Yuganskneftegaz' two largest fields, Priobskoye and Prirazlomnoye, contained 33% and 10.7% of Rosneft’s total proved reserves, respectively.
In 2005, Yuganskneftegaz built and began operating the Booster Pipeline Pumping Station (BPPS) at the Ust-Balykskoye field, six preliminary water removal units (PWRU) and two group pumping stations. In addition, it installed two electric substations and two overhead electric transmission lines stretching a total of 24 kilometres (14.9 mi). In 2006, Yuganskneftegaz began operating eight group pumping stations, an oil pumping station at the Prirazlomnoye field, another preliminary water removal unit, an external oil pipeline and six additional power generating stations. At the Priobskoye field
Priobskoye field
The Priobskoye field is an oil field in Russia. It occupies an area of in the Khanty-Mansi Autonomous Okrug of Western Siberia. It is located along both banks of the Ob River, east of the District's capital city, Khanty-Mansiysk, and west of Nefteyugansk, the town that serves the...
, another oil production plant was set up and is now operating.
Selected fields
| Field | Geological Basin | Annual Production 2004 | Reserves | Discovery | Operator(s) |
|---|---|---|---|---|---|
| Priobskoye field Priobskoye field The Priobskoye field is an oil field in Russia. It occupies an area of in the Khanty-Mansi Autonomous Okrug of Western Siberia. It is located along both banks of the Ob River, east of the District's capital city, Khanty-Mansiysk, and west of Nefteyugansk, the town that serves the... |
W. Siberia | 437,481 | 1982 | ||
| Prirazlomnoye field | NA | NA | |||
| Mamontovskoye field | NA | NA | |||
| Malo-Balykskoye field | NA | ||||
| Salymskoye field | NA | NA | |||
Notes:
1. USGS 2002 (Bbbl = "billion barrels of oil"). 2. LOF = large oil fields (>100 million barrels of oil equivalent): GOF = giant oil fields (>500 million barrels of oil equivalent).