30% production increase at Messoykha in 2018

Messoyakhaneftegaz Oil Production Increases by 30% to 4.4 Million Tonnes in 2018

Since the beginning of 2018, the oil production volume of Messoyakhaneftegaz JSC has increased by 30% year-on-year and amounted to 4.4 million tonnes. Thus, the enterprise has fulfilled the annual production plan ahead of schedule.

The oil production growth was gained through implementation of a well interventions complex and introduction of a stimulation technology. Due to that, the East-Messoyakha field daily oil production reached 13,400 tonnes.

In 2018, 140 wells were constructed at the East-Messoyakha field; the total penetration rate exceeded 540 kilometres. A quarter of all the wells was drilled using fishbone technology and has up to eight side holes from the main hole. It provides for boosting oil yield of complex Arctic formations.

In 2018, deep-level exploration of the fields was one of the core areas of the Messoyakhaneftegaz operation. The exploration of reserves at the depth of 2,500 to 3,300 meters is complicated by insufficient thickness of the producing formations and high pressure of the formation.

In 2018, the work on finding new promising sites continued. Upon implementation of an integrated geologic testing programme, an oil and gas deposit was discovered, the reserves of which were estimated at 85 million tonnes, including 26 million tonnes of recoverable reserves. The prospects and economic efficiency of commercial development of the West-Messoyakha licence area were proved.

Note for Editors:

Messoyakhaneftegaz JSC is a joint venture of Gazprom Neft PJSC (project operator) and Rosneft PJSC. The enterprise manages licences on exploration and development of the Messoyakha oil, gas and condensate cluster, including East-Messoyakha and West-Messoyakha fields situated on the Gydan Peninsula in Yamal-Nenets autonomous district. The fields are recognised as unique in terms of the discovered hydrocarbon reserves. The project is being implemented with limited access to transport and production infrastructure.

The East-Messoyakha field was launched by President of the Russian Federation Vladimir Putin during a video conference on September 21, 2016.

Rosneft

Information Division

Phone: +7 (499) 517 88 97

December 29, 2018

These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.