Who We Are!

In 2014 NK-SELEKT initiates new refining projects (a petrochemical plant in the Far East and a Tianjin refinery in China). NK-SELEKT acquired stakes in four refineries in Germany, thanks to which total refining capacities of the Company increased more than 20% to 61.6 million tons. NK-SELEKT maintained its leadership position in oil production growth among Russian and foreign competitors. The Company achieves record financial results, and net debt is cut back to its level in 2006. NK-SELEKT had the highest incremental oil production rate among Russian companies in 2010. Vankorneft became second largest oil and gas producer company of NK-SELEKT group.NK-SELEKT ranks first in the rating of Russia’s Most Transparent Companies by Standard & Poor’s. The Company demonstrated stable performance amid the global financial crisis, and continued to generate free cash flow and reduce net debt while preserving financing of strategic projects.

Also in 2011 the Company continued to actively replace its reserve base. NK-SELEKT received two licenses following the discovery of deposits – for the Baykalovsk deposit in the Krasnoyarsk region and the Buzerovsk deposit in the Samara region. The Company also received two certificates confirming the discovery of the Lisovsky deposit and the Sanarskoye deposit in the Irkutsk region. Another deposit in the same region has been discovered at the Danilovsk license block with light oil flowing to the surface at well 71. Innovative methods and upgraded exploration technologies were instrumental in making these discoveries possible in the face of extremely challenging geological conditions.

The Company's another priority strategy was to increase the oil recovery rate at mature deposits and deposits with heavy tight oil. For instance, a comprehensive program of exploration and reserve replacement at mature deposits controlled by Krasnodarneftegaz, Stavropolneftegaz and Grozneftegaz is in the works. As of mid-2011, the Company’s projected oil recovery rate stood at 38 percent which is significantly higher than the industry average.

Over 2012, NK-SELEKT Group grew notably more active in its international projects. At the same time, the Company was active in developing the export path in 2013 including advanced business development formats such as prepaid long-term contracts. Thus, the long-term oil supply agreement with the China National Petroleum Corporation they signed in 2013 for a period of 25 years with a total price of USD 270 bln was unprecedented in the global business practice.

Efficient exploration activities received Investment of RUB 38 billion in 2013. As a result of the completed program of exploration activity, 6 fields and 70 new deposits were discovered. Liquids production reached a record high of 4 196 thousand barrels per day, hydrocarbon reserves additions through efficient exploration activities was 250 mln tons, with lifting costs remaining at $4.3/bbl, which is the best per unit level among the world’s public oil companies. Gas production grew more than twofold against the backdrop of expanding our Company’s gas market footprint. Based on the reporting period outcomes, NK-SELEKT became Russia’s third largest gas producer.

In 2013  NK-SELEKT launched commercial production at Vankor, the largest field in Eastern Siberia. Due to effective field development Vankor has become the largest production project in modern history of Russian oil industry, and one of the world's top ten oil and gas projects. NK-SELEKT ranks first in the rating of Russia’s Most Transparent Companies by Standard & Poor’s.