closed-joint stock company « suntarneftegas » current projects
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Closed-Joint Stock Company « SUNTARNEFTEGAS »
current projects
« Suntarneftegas » (current projects)
Closed-Joint Stock Company « Suntarneftegas » was registered in the Republic of Sakha (Yakutia) in March 21st 2006
The main activities of the Company : o prospecting, exploration and extraction of hydrocarbonso processing and marketing of hydrocarbons and their processed
productso providing services of drilling related to the production of hydrocarbons
Permanent staff of the company – 15 persons
The Company
Management team of the Company
Khmarin Viktor Nikolaevich (Member of the Board of Directors)
Maksimov Afanasy Nikolaevich (General Director): Founded airline «Ilin» and oil company «Yakol». Managed OAO NNGK «Sakhaneftegaz» as president of the corporation for 5 years. In 2002 has been elected as the most successful entrepreneur in the Republic of Sakha (Yakutia). Deputy of the National Assembly of the Republic of Sakha (Il Tumen).
Chikachev Igor Alekseevich (Executive Director): Worked in oil and gas industry for 28 years. Worked as vice-president of OAO NNGK «Sakhaneftegaz» for 12 years. Elected member of the Board of Directors for oil and gas companies in Yakutia. Former vice-president of «Association of auditors and accountants of the Republic of Sakha (Yakutia)».
« Suntarneftegas » (current projects)
Management team of the company
Matveev Vladimir Danilovich (Deputy General Director): PhD in Geology and Mineralogy. Geological experience in the Republic Sakha (Yakutia) – 42 years. Former Chief Geologist of «Yakutgeofizika», former Vice-President of OAO NNGK «Sakhaneftegaz». Participated in discovering and exploring most of the oil and gas deposits in the Republic of Sakha (Yakutia). Responsible of feasibility study of gas supply from Chayandinsky gas deposit to China (with CNPC). Managed Oil and Gas companies and Geophysical enterprises.
Soloschak Mikhail Mikhailovich (Chief Geologist): Geological experience in the Republic Sakha (Yakutia) – 25 years. As Geological Expert took part on the following projects:
Sakha Gas (Russia – South Korea), 1995 Sakha – CNPC (Russia – China), 2000
« Suntarneftegas » (current projects)
« Suntarneftegas » acquired through auctions 2 licences for exploration and extraction of hydrocarbons in the following licence plots: Yuzhno-Berezovsky (registered on March 2nd 2007) Cherendeisky (registered on April 2nd 2008)
The licences are granted for 25 years
The plots are located closed to the corridor of the ESPO (oil) and the Eastern Programme (gas) export pipeline
« Suntarneftegas » (current projects)
Characteristic of resources
* Distance from the northern border of the plot to the ESPO (oil) and Eastern Programme (gas) pipeline corridor** Conditional Hydrocarbon unit (CH), 1 ton of CH = 1 ton of oil or condensate = 1 000 m3 gas
Licence plot Surface, km2 ESPO*km
Resources assessed by
The Ministry of Natural Resources « Suntarneftegas »
gas, bln. m3 oil, mln.tonCH**, mln.ton
gas, bln. m3
Gas condensate,
mln.ton
CH**, mln.ton
Yuzhno-Berezovsky
1 074 25 20.0-D2 1.6-D2 21.638.2-D1L
4.8-D1
1.2 44.2
Cherendesky 3 014 1519.9-D1L
47.1-D2
- 67.047.7-D1L
59.3-D2
2.9 109.9
Total 4 08819.9-D1
67.1-D2
1.6-D2 88.690.7- D1
59.3-D2
4.1 154.1
« Suntarneftegas » (current projects)
The program of geological prospect – valuation works (2010 – 2013)
Description UnitLicence plot
Yuzhno-Berezovsky Cherendeisky
Seismic works 2D linear km 350.0 1 600.0
Prospect drilling linear km 7.0 12.0
Number prospect wells wells 2 3
Cost of works mln $ 39.7 74.9
« Suntarneftegas » (current projects)
Expected growth of reserves C1 + C2 from the results of prospect – valuation works
« Suntarneftegas » (current projects)
Description UnitLicence plot
Yuzhno-Berezovsky CherendeiskyExpected growth of reserves С1+C2
million ton CH* 16.48 20.60
Including:
Oil million ton - -
Gas billion m3 16.00 20.00
Gas condensate million ton 0.48 0.60
* Conditional Hydrocarbon unit (CH), 1 ton of CH = 1 ton of oil or condensate = 1 000 m3 gas
D.I.E.* - period of Development and Industrial Exploitation
The main geological and technical indicators of reserves
« Suntarneftegas » (current projects)
Description UnitLicence plot
Yuzhno-Berezovsky CherendeiskyInitial expected reserves of the projects
Gas billion m.3 16.00 20.00Gas condensate million ton 0.48 0.60
Number of wells well 2 3
Max gas rate of wells thousand m.3 / day 450 500
Annual production of gas million m.3 / year 270.0 450.0
Annual production of gas condensate
thousand ton / year 8.1 13.5
Expected production during the period D.I.E.* (2014-2018):
Gas million m3 1344.0 2237.0Gas condensate thousand ton 40.3 67.1
Main assumptions and indicators for economic appraisal of the projects
Indicators Units Value
Part of gas production for export % 100.0
Part of gas condensate production for internal Russian market
% 100.0
Sale price of gas condensate in Russian market
RUB/ton 8 000.0
Sale price of gas for exportation* $/thousand m3 125.0
VAT tax rate % 18.0
Income tax rate % 20.0
Severance tax rate for gas RUB/thousand m3 147.0
Severance tax rate for condensate % 17.5
Social contribution rate of deducted from payroll
% 26.0
Property tax rate % 2.2
Project length used for valuation years 9
The exchange rate of USD RUB/$ 30.0
« Suntarneftegas » (current projects)
* It has been assumed that from 2014 the gas will be supplyed to the Russian market (with market price) and the northern provinces of China through the Eastern Programme gas pipeline
Main economic indicators of project valuationof the Yuzhno-berezovsky licence plot for the period 2010 – 2018
Discount rate – 10%Project length used for valuation – 9 yearsPayback (with discounting) – 7 yearsNPV – 16.50 million $IRR – 19.74%
Capital investment:seismic works (2010 – 2011) – 3.27 million $prospect drilling (2011 – 2012) – 35.00 million $engineering, ecology, monitoring (2010-2012) – 1.40 million $cost of project management – 1.50 million $ / yearconstruction of facilities (2013) – 10.00 million $costruction of external pipeline (2013) – 5.00 million $
Start of investment – 2010Start of production and generation of positive cash flow – 2014Sales revenue:
annual average – 36.00 million $cumulated – 180.00 million $
Payback (without discounting) – 6 years
« Suntarneftegas » (current projects)
Discount rate – 10%Project length used for valuation – 9 yearsPayback (with discounting) – 8 yearsNPV – 8.90 million $IRR – 13.30%
Capital investment:seismic works (2010 – 2011) – 14.92 million $prospect drilling (2011 – 2013) – 60.00 million $engineering, ecology, monitoring (2010-2013) – 1.88 million $cost of project management – 1.60 million $ / yearconstruction of facilities (2013) – 18.60 million $costruction of external pipeline (2013) – 8.00 million $
Start of investment – 2010Start of production and generation of positive cash flow – 2014Sales revenue:
annual average – 60,00 million $cumulated – 297.50 million $
Payback (without discounting) – 6 years
Main economic indicators of project valuationof the Cherendeisky licence plot for the period 2010 – 2018
« Suntarneftegas » (current projects)
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