The Federal Subsoil Resources Management Agency (Rosnedra) made amendments to JSOC Bashneft’s licence for geological exploration and production of hydrocarbons within a subsoil area including the R. Trebs and A. Titov oilfields in the Nenets Autonomous District

‘These amendments to the licence for the Roman Trebs and Anatoly Titov fields aim to specify our licence obligations more clearly, so as to avoid ambiguity in their interpretation,’ commented Alexander Korsik, President of Bashneft. ‘These clarifications fully comply with the existing legislation and the terms of the tender and do not lead to any changes in our obligations related to implementing the project. Furthermore, they equally serve the interests of the government and the Company.’

Under the terms of the licence for the R. Trebs and A. Titov fields, the subsoil user must process no less than 42% of hydrocarbons at refineries owned by the licence holder.

The new version of the licence agreement specifies that hydrocarbons to be processed are defined as oil meeting the requirements of the GOST R 51858–2002 standard and owned by the licence holder, in the amount totalling no less than 42% of the total volume of oil produced by the licence holder at the subsoil area.

The licence agreement also specifies that refining capacities owned by the licence holder are defined as capacities of processing units owned and/or leased by the licence holder and/or affiliated persons of the licence holder or its members.

Currently under the procedures established by legislation and in accordance with the resolution of the Company’s Board of Directors, Bashneft is taking the necessary measures for transferring the licence for the R. Trebs and A. Titov fields to the project operator LLC Bashneft-Polyus, a joint venture between JSOC Bashneft and OJSC Lukoil.