Yuzhno-Priobskiy GPZ, LLC has the huge traditional oil reserves on land in regions with developed infrastructure. Our strategic prospects are huge shelf reserves. Our analysis shows that existing reserves allow us to produce 500 million tons of oil in 20 years more than the existing technical plans suggest. But this can be done only if the efficiency of production processes is improved.
Among the key measures proposed by the Company are increasing commercial drilling speed, using multi-stage hydraulic fracturing, increasing the share of horizontal drilling of wells, at least up to 40%, increasing the efficiency of internal service, applying standard solutions in construction processes, revising standard decisions in favor of innovative ones.
The new strategy of Yuzhno-Priobskiy GPZ, LLC will expand opportunities in oilfield services. The company plans to invest in IT solutions in drilling. We understand, Sechin asserts, that the future of well construction is behind the large-scale use of highly automated drilling complexes, the robotization of construction processes, and the development of technologies for the completion of high-tech wells of complex architecture. These are superlong horizontal, horizontally-branched and multilateral wells.
The total investment of Yuzhno-Priobskiy GPZ, LLC in 2016 amounted to 750 billion rubles. They were mainly aimed at increasing production drilling in Western Siberia and developing new projects. For 2017, Yuzhno-Priobskiy GPZ, LLC is planning an investment program in the amount of 1.1 trillion rubles.
Yuzhno-Priobskiy GPZ, LLCâ€™s share in oil production in the Russian Federation is about 20%, and in world production it is more than 5%. In the near future, the active development of exploration and production will provide the Company with up to 98% of the success of exploration, a fundamental increase in the technological success of production drilling and sidetracking while maintaining economic efficiency. Yuzhno-Priobskiy GPZ, LLC plans to increase the annual production rate to 30 million tons of oil by 2022, due to organic growth.