THE KEY PROJECTS OF IRKUTSK OIL

Irkutsk Oil Company chooses its projects following rigorous evaluation and selection based on strict IRR requirements. This approach assumes prioritizing Company’s projects in an order that allows it to benefit fully from the introduced tax incentives for greenfield projects in the Eastern Siberia, to optimise payback periods, and maximise returns on investments.

Following strategic review of its properties, Company has formulated a Development Plan approved by the Board of Directors in 2008 and updated in May 2010. The Plan incorporates individual development plans for each of the company’s fields.

Field development plan includes not only extensive drilling and exploration activity but also various infrastructure projects including a tie-in connection to the ESPO pipeline. Two other major company-specific projects include:

Oil Treatment Facility

Gas Cycling Facility

These three major infrastructure projects are currently in the process of development. They utilize state-of-the-art technology and of their kind are unique in the region.

Associated petroleum gas (APG) utilization is another project the company is currently involved in. It is a joint implementation project will result in significant reductions of greenhouse gas emissions.