Moscow, 8 August 2002; Sibneft has completed its first well at the West Ozyornoye gas field, located in the Chukotka autonomous district to the west of the regional capital of Anadyr. The deposit is the first pure gas field to be developed by the company. The project is in line with Sibneft's intention to strengthen the gas component of its business.

Gas from the field will be delivered to the power station in Anadyr via a recently completed 104-kilometre pipeline. The field’s reserves are estimated at 6 billion cubic metres, and production is targeted at 120 million cubic metres per year. The well is the first of four to be drilled at the field.

Sibneft had proven gas reserves of 40.8 billion cubic metres at the start of 2002, in addition to probable and possible reserves of 28.1 billion cubic metres, according to an audit by oil and gas consultants Miller and Lents.

“Sibneft is studying a range of projects to deliver gas both in the form of pipeline gas and liquefied natural gas, as well as opportunities in the field of gas processing,” said company president Eugene Shvidler.

Contact:

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