Moscow, 30 May 2002; Sibneft’s first horizontal well at its Sugmut field has come on stream with output of 9,010 barrels (1,250 tonnes) per day, the highest of any well in Western Siberia.

The well has a total length of 4,450 metres, including a vertical section of 3,170 metres and a horizontal section of 1,280 metres, the longest ever drilled in Russia. The well is the first of eight horizontal wells to be drilled by Pride Forasol, a unit of Pride International, under a $60 million contract signed last year. Halliburton, Schlumberger and Baker Hughes are subcontractors under the project.

Sibneft earlier this year completed a horizontal well at its Karamovskoye field, which flowed at a rate of 7,390 barrels (1,025 tonnes) per day. The well was drilled by the company’s Sibneft-Drilling subsidiary using a Russian rig and locally developed geosteering technology, which allows drill operators to gather geological data in real time as they bore holes.

Sibneft last year raised the average output from new wells by more than one third to 469 barrels (65 tonnes) per day. Horizontal wells yielded 2,820 barrels (392 tonnes) per day, or more than six times the average for new wells. Sibneft intends to bring 43 horizontal wells on stream by the end of 2002.

“The combination of cutting-edge technology and extensive experience offered by international service companies has enabled us to achieve high growth at a low cost, and become Russia’s fastest growing producer,” said Sibneft president Eugene Shvidler.

Contact:

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