In 2003, OJSC “Surgutneftegas” benefited from technical re-equipment of primary production and research and saved more than RUR 5 bn, including RUR 2.2 bn received due to enhanced oil production as a result of various formation stimulation methods. Production maintenance of wells, well workover (including sidetracking), well construction, oil treatment, gas production and transportation showed the best economic results.

As part of the Company’s R&D program, we completed development of a new bridging material to be used to tighten surface and production casings. In 2004 OJSC “Surgutneftegas” is going to carry out phased transition to the use of this material instead of gel-cement slurries.

This year we are planning to increase the number of innovation proposals. The Company is to conduct 119 R&D projects; 272 new technologies are to be introduced. The estimated economic effect is to amount to RUR 5.5 bn.

Press Service of OJSC “Surgutneftegas”