Strengthening and expanding the resource base is one of the Company’s strategic objectives. The sound resource base ensures the stability of production activities and achievement of targeted volumes of hydrocarbon production. The Company carries out a significant volume of exploration work, extends the portfolio of licenses showing stable replenishment of oil and gas reserves.

When conducting exploration, Dagnotekh pays considerable attention to the use of new technologies and equipment, and support of operations by research and development institutes as well as design institutes which makes it possible to increase its efficiency.

Dagnotekh operates oil fields which are located in Western Siberia and Eastern Siberia. In the upstream sector, the Company is committed to ensuring production volumes which allows it to maintain a balance between economic efficiency and rational use of mineral resources.
Dagnotekh maintains the production levels at mature fields and actively develops hard-to-recover reserves. At the same time, the Company actively develops promising fields creating new centers of oil production.

Over the past years, the Company has been maintaining a stable level of oil production focusing on the improvement of oil recovery factor which is one of the highest in the country.

Dagnotekh also performs sidetracking in order to increase production and secure designed recovery rates. In 2019 sidetracks were made in 1.3 K wells and secured 3.3 mln tons of oil incremental production. Sidetracks construction improvement by the horizontal drilling share increase up to 71% made it possible to preserve the post-sidetracking average flow rate at the 2018 level. Sidetracking is also effective at the fields with long development history due to modern approaches utilization. Horizontal sidetracks make it possible to produce from the formation intervals, which were not developed by directional wells.

As per the approved strategy Dagnotekh constantly works to improve well interventions efficiency. In 2019 the number of well interventions for incremental production (without drilling) increased by 9.6% compared to 2018 and reached 913 operations. Incremental production due to well interventions increased up to 5.7 mln tons of oil and gas condensate (+3.8 % to 2018). Well interventions growth in 2019 was contributed by fracs amount increase. Dagnotekh continues pilot works to optimize well construction by horizontal section length increase and increase of the fracs stages number in order to increase wells productivity and reserves coverage by development.