IRKUTSK OIL COMPANY AT A GLANCE
Irkutsk Oil Company is a private company focused on exploration and production of crude oil, condensate and natural gas in the Irkutsk region of Eastern Siberia, Russia.
Irkutsk Oil Company Group includes CJSC “INK-Capital”, a holding company and its subsidiaries. CJSC “INK-Capital” is 100% owner of ‘Irkutsk Oil Company’, LLC which was established on November 27, 2000 by uniting several small producers in the region. The European Bank for Reconstruction and Development (EBRD) is a shareholder of INK-Capital with a minority stake of 8.15% since May 2008.
Irkutsk Oil is one of the largest independent oil and condensate producers in Eastern Siberia with current production of 14,000 boepd. The Company holds 17 subsoil licences, of which 4 are production licences; 8 are combined licences for geological survey, exploration and production of hydrocarbons; and 5 are survey and exploration licenses. Eight licences are held through various joint ventures with Japan Oil, Gas and Metals National Corporation (JOGMEC) and LLC “Vostokpetrogas”.
Since the acquisition of licences in the early 2000s, Irkutsk Oil had invested approximately $350 million in various E&P activities and associated infrastructure. These investments allowed the Group to increase its production at a compound annual growth r ate of 28% since 2001 and reach approximately 8,000 boepd through 2009.
At the moment, the main producing field is the Yaraktinsky, which is responsible for over 80% of the Group’s cumulative production. The Group will continue focusing on active development of Yaraktinsky field which is expected to keep on generating most of the revenues in the next 5-10 years.
The majority of the Group’s properties are located in proximity to the ESPO pipeline and surround its largest development project, Yaraktinsky field. An exception is North Mogdinsky license block, which provides the Company with an opportunity of building up a cost-efficient production hub in the Eastern Siberia, where all subsequent developments may tie into the oil and gas infrastructure of Yaraktinsky field.
The Group owns a field service company called JSC “INK-Service”. It provides Irkutsk Oil the most efficient drilling and work-over operations implementing innovative technologies such as wireless steering system with hydraulic (mud pulse) communications link and four stage mud cleaning system. It has achieved excellent results in drilling and work-over of wells in the severe climate and difficult geological conditions of the Eastern Siberia.
KEY FACTS ABOUT INK
Irkutsk Oil Company has demonstrated an impressive exploration track record throughout its history. This includes the discovery of 4 new fields in 2008-2010. Today, the Group is one of the top 20 largest Russian oil and gas companies by reserves. The Group expects its portfolio of discoveries, prospects and leads to deliver further value in the longer term. The Company plans to continue its exploration program in order to take advantage of the significant possible reserves and contingent resources in the region.
In addition to its exploration potential, Irkutsk Oil has substantial gas reserves and is currently evaluating monetisation alternatives. It has completed the first stage of the gas re-injection facility at Yaraktinsky field. THe facility currently process up to 1 million cubic metres of gas per day and has the ability to increase its production to 6 million cubic metres upon additional investment. Gas cycling enables the Company to extract high-value added condensate and propane-butane while re-injecting the methane and ethane into the formation. This project is the first of its kind in Russia. The Group is also evaluating several other gas utilization alternatives, including power generation, petrochemical facilities, and a gas-to-liquid (GTL) plant. To comply with strict international environmental requirements, including the provisions of Kyoto protocol, the Company applies effective ways of associated gas utilization. The Group is environmentally and socially oriented and endeavors to be a good corporate citizen. We implement the requirements and approaches of world's best corporate governance practice within each of our subidiaries.
All holding, operating, and license holding companies of the Group are located, registered and pay taxes in Irkutsk region.
Irkutsk Oil Company is honored to partner with some of the most successful and influential organizations in Russia and abroad. Our company’s achievements would not be possible without their generous support and innovative knowledge. By strengthening and developing these vital partnerships, we increase our chances for success in winning new business and overcoming environmental challenges. We would like to especially thank European Bank for Reconstruction and Development (EBRD), Japan Oil, Gas and Metals National Corporation (JOGMEC), Vostokpetrogas, and Sberbank’s Baikal Bank. Partnership with those and many other respected companies and banks, combined with the knowledge and hard work of our team made our success possible.
