Moscow, 28 May 2002; Sibneft has completed construction and testing of a crude pipeline linking the southwest portion of the Krapivinskoye field in the Omsk region with the Transneft pipeline network. The 58-kilometre pipeline has a capacity of 36,000 barrels (5,000 tonnes) per day. The Krapivinskoye field is located about 400 kilometres from Sibneft’s Omsk refinery.

Construction of the pipeline began in January 2002, and the company plans to begin pumping oil through the new line in June, following the completion of work on the field’s infrastructure. Production from the field is currently being delivered to the Omsk refinery by road.

Additional exploration work has raised the field’s recoverable reserves to 72 million barrels (10 million tones) from 62 million barrels (8.6 million tones) previously. Sibneft has drilled three exploration wells and four production wells at the field. Output from Krapivinskoye is this year expected to total 2,250 barrels per day (114,000 tonnes), rising to a peak of 20,000 barrels per day (1 million tonnes) in 2005.

Development of the Krapivinskoye field is part of Sibneft’s strategy to expand production beyond its home base in Noyabrsk. “The company succeeded in launching production within a year of commencing development of the field,” said Sibneft president Eugene Shvidler. “This pipeline will enable us to continue increasing production in the Omsk region.”

Contact:

Nick Halliwell
Sibneft
Tel: +7 095 777 3116
nick@sibneft.ru
www.sibneft.ru