Yuganskneftegaz

Yuganskneftegaz
Юганскнефтегаз
Type	Private, subsidiary of Rosneft
Industry	Oil and gas industry
Founded	1964
Headquarters	Nefteyugansk , Russia
Key people	Hasan Kurisheivich Tatriev
Products	Petroleum
Parent	Rosneft
Website	www.yungjsc.com

Last updated March 01, 2019

Yuganskneftegaz (Russian : Юганскнефтегаз) is a wholly integrated subsidiary of Rosneft that owns and operates the second largest oil production complex in Russia. It was formerly the most important production subsidiary of Yukos, but was expropriated by the Russian government and given to Rosneft, a state-owned company.

Russian is an East Slavic language, which is official in the Russian Federation, Belarus, Kazakhstan and Kyrgyzstan, as well as being widely used throughout Eastern Europe, the Baltic states, the Caucasus and Central Asia. It was the de facto language of the Soviet Union until its dissolution on 25 December 1991. Although, nowadays, nearly three decades after the breakup of the Soviet Union, Russian is used in official capacity or in public life in all the post-Soviet nation-states, as well as in Israel and Mongolia, the rise of state-specific varieties of this language tends to be strongly denied in Russia, in line with the Russian World ideology.

PJSC Rosneft Oil Company is a Russian integrated energy company headquartered in the Russian capital of Moscow. It is specializing on exploration, extraction, production, refinement, transport, and sale of petroleum, natural gas, and petroleum products. The company is controlled by the Russian government through the Rosneftegaz holding company. Its name is a portmanteau of the Russian words Rossiyskaya neft'.

OJSC "Yukos Oil Company" was an oil and gas company based in Moscow, Russia. Yukos was acquired from the Russian government by Russian oligarch Mikhail Khodorkovsky's Bank Menatep during the controversial "loans for shares" auctions of the mid 1990s. Between 1996 and 2003 Yukos became one of the biggest and most successful Russian companies, producing 20% of Russia's oil output. In October 2003, Khodorkovsky—by then the richest man in Russia and 16th richest man in the world—was arrested, and the company was forcibly broken up for alleged unpaid taxes shortly after and declared bankrupt in August 2006. Courts in several countries later ruled that the real intent was to destroy Yukos and obtain its assets for the government, and act politically against Khodorkovsky. In 2014 the largest arbitration award in history, $50 billion, was won by Yukos' former owners against Russia.. However this $50 billion award by the Permanent Court of Arbitration has been thrown out by the local court in The Hague as invalid.

Background

Yuganskneftegaz began operations in 1964, and saw significant upgrades in the 1990s that are responsible for bringing its production to their current levels. Yuganskneftegaz was formerly owned by Yukos, which was broken up and its principal assets sold off to satisfy tax debts allegedly totaling $28 billion. On 19 December 2004, Yuganskneftegaz was sold at a state-run auction, ostensibly to satisfy tax debts. The winning, and sole, bidder, was a little-known Russian oil company called Baikal Finance Group, who paid $9.7 billion. It was later revealed that the previously unheard-of Baikal Finance Group is a group of Kremlin insiders headed by Igor Sechin, Deputy Head of the Presidential Administration and a close associate of President Vladimir Putin. On 22 December 2004, Baikalfinansgrup was purchased by Rosneft, a wholly state-owned Russian oil company. Sechin has been Chairman of Rosneft's Board of Directors since July 2004. The de facto nationalization of Yuganskneftegaz was denounced by Andrei Illarionov,^[1] then a senior Putin economic advisor, as "the scam of the year."^[2]

Baikalfinansgrup is a Russian limited liability company owned by Rosneft Oil Company. It is best known as the company that won the December 19, 2004 auction for a 76.79% share in Yuganskneftegaz, formerly the core production subsidiary of Yukos Oil Company. Baikalfinansgrup won the auction with a bid of 261 billion rubles, which was somewhere between 37-49% of Yuganskneftegaz’ market value at the time, according to an appraisal made by Dresdner Kleinwort Wasserstein and JPMorgan Chase & Co..

Igor Ivanovich Sechin is a Russian official, considered a close ally and "de facto deputy" of Vladimir Putin. Sechin is often described as one of Putin's most conservative counselors and the leader of the Kremlin's Siloviki faction, a lobby gathering former security services agents. Until 21 May 2012, he served as Deputy Prime Minister of Russia in Vladimir Putin's cabinet and he is currently the Executive Chairman of Rosneft, the Russian state oil company. Sechin has been linked to the “siloviki” faction in the Kremlin, composed of ex-security services personnel who have entered politics as well as undertaking several political assassinations including Boris Nemtsov in 2015.

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Complex

Yuganskneftegaz is located in the Khanty–Mansi Autonomous Okrug of Western Siberia. With 11.63 billion barrels (1.849 billion cubic metres) of proven oil reserves, Yuganskneftegaz was the largest Yukos production complex. Yuganskneftegaz produces about 1 million barrels (160,000 m³) of crude oil a day, about 60% of Yukos total, and about 1.6% of the world total. Its main oil fields are Priobskoye, Prirazlomnoye, Mamontovskoye, Malo-Balykskoye, and Salymskoye. According to the annual audit by DeGolyer and MacNaughton, as of 31 December 2006, Yuganskneftegaz' two largest fields, Priobskoye and Prirazlomnoye, contained 33% and 10.7% of Rosneft’s total proved reserves, respectively.^{[ citation needed ]}

Siberia is an extensive geographical region spanning much of Eurasia and North Asia. Siberia has historically been a part of modern Russia since the 16th and 17th centuries.

Oil reserves denote the amount of crude oil that can be technically recovered at a cost that is financially feasible at the present price of oil. Hence reserves will change with the price, unlike oil resources, which include all oil that can be technically recovered at any price. Reserves may be for a well, a reservoir, a field, a nation, or the world. Different classifications of reserves are related to their degree of certainty.

DeGolyer and MacNaughton is a petroleum consulting company based in Dallas, Texas, with offices in Houston, Moscow, Astana, Buenos Aires, and Algiers.

In 2005, Yuganskneftegaz built and began operating the Booster Pipeline Pumping Station (BPPS) at the Ust-Balykskoye field, six preliminary water removal units (PWRU) and two group pumping stations. In addition, it installed two electric substations and two overhead electric transmission lines stretching a total of 24 kilometres (15 mi). In 2006, Yuganskneftegaz began operating eight group pumping stations, an oil pumping station at the Prirazlomnoye field, another preliminary water removal unit, an external oil pipeline and six additional power generating stations. At the Priobskoye field, another oil production plant was set up and is now operating.

The Priobskoye field is an oil field in Russia. It occupies an area of 5,466 square kilometres (2,110 sq mi) in the Khanty–Mansi Autonomous Okrug of Western Siberia. It is located along both banks of the Ob River, 65 kilometres (40 mi) east of the District's capital city, Khanty-Mansiysk, and 100 kilometres (62 mi) west of Nefteyugansk, the town that serves the field.

Selected fields

Field	Geological Basin	Annual Production 2004	Reserves	Discovery
Priobskoye field	W. Siberia	437,481		1982
Prirazlomnoye field		NA		NA
Mamontovskoye field		NA		NA
Malo-Balykskoye field		NA
Salymskoye field		NA	NA

Notes:

1. USGS 2002 (Bbbl = "billion barrels of oil"). 2. LOF = large oil fields (>100 million barrels of oil equivalent): GOF = giant oil fields (>500 million barrels of oil equivalent).

Notes

↑
↑ S. Goldman (2006) p.5

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References

Stuart D. Goldman (2006) CRS Report for Congress
Bernard A. Gelb (2006) Russian Oil and Gas Challenges
Energy Information Administration (EIA). Russia Country Analysis Brief,
Yukos Receives Bill for Nearly $1 Billion in Back Taxes October 2004

External links

Rosneft site - English language

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[1] ↑

[2] S. Goldman (2006) p.5