Corporate Background

Salym Petroleum Development N.V. was established in 1996 as a Joint Venture between Shell and Russian oil company Evikhon (which was acquired by Gazprom Neft in late 2000s) with the purpose of developing the Salym group of fields.

Development of the Salym group of fields which comprises Upper Salym, West Salym, and Vadelyp started in September 2003 within the scope of the existing tax regime. SPD expanded the work towards building the infrastructure: roads, oilfield tanks, rotation camp, warehouses, and power lines. The preparatory phase for the drilling programme proceeded concurrently.

In April 2004 the first development well was spudded, whilst in August SPD specialists drilled an exploration well on the Upper Salym field, which topped the oil sand. In December 2004, the company started oil production from early wells in the West Salym field.

In 2005, the company completed construction of priority oilfield infrastructure facilities including an 88 kilometre oil export pipeline, a 50 kilometre all-season motor road, power supply facilities, oil gathering networks, and the first train of the Central Processing Facility (CPF). In November 2005 SPD brought the West Salym field onstream.

In 2006, the company connected all three fields in a common system, which made it possible to maximize the efficiency of usage of the oilfield infrastructure and optimize the development of the fields as a whole. As early as in the summer of 2006, only three years into the commencement of the Salym project execution, SPD became one of the Russian petroleum companies with the annual production volume in excess of one million tons.

In October 2007, the daily oil production volume on the Salym group of fields exceeded 100,000 bbls. Four years thereafter, on 25 September 2011, SPD set an operations record by having produced 24,597 tons (177,472 bbls) of oil – the highest daily production indicator in the company’s history. In the same year, the company also achieved the peak annual production level by having produced 8.3 million tons of oil.

In 2012 SPD with its partners has successfully commissioned a unique associated petroleum gas processing facility – Monolit, which made it possible for the company to utilize over 95% of associated petroleum gas.

The Salym project today is a large modern world-level oilfield. The cumulative volume of oil produced since the start of the Salym project execution has exceeded 50 million tons. The amount of tax payments to the budget of the country equalled to 200 million RUR. The company annually spends 80+ million RUR on social investment.