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IE at a Glance

IE at a Glance

Since 13th January, 2009 Imperial Energy is a wholly owned subsidiary of ONGC Videsh Limited (OVL), the overseas arm of Oil and Natural Gas Corporation (ONGC), the flagship national oil company of India. Imperial Energy was fully acquired by OVL and was delisted from LSE in March 2009.

Imperial operations

Imperial Energy operates in Tomsk region of Western Siberia, Russian Federation. Western Siberia is the most prolific oil-producing region in Russia with some of the world largest oil fields. Oil production from West Siberia currently accounts for 71% of Russia’s total. 

Tomsk region is the second largest oil-producing province in Western Siberia with daily production about 300,000 bopd for the last few years. Many major players operate in Tomsk region, including Gazprom Neft, TNK-BP, Surgutneftegaz and others. Leading role in oil production in the region is played by Rosneft and Gazprom neft joint subsidiary – Tomskneft.

Imperial Energy is currently operating through three subsidiaries (Allianceneftegaz, Sibinterneft and Nord Imperial) located in Tomsk. Imperial owns 14 licenses and has the 2nd largest acreage position (after Tomskneft).

Imperial’s interests comprise 7 blocks in Tomsk region: blocks 69, 70, 74, 77, 80, 85 and 86. All Imperial’s licence interests in Tomsk region are 100% owned by Imperial except block 74 where Imperial’s net interest is 47.5%. The total licensed area in Tomsk for all blocks is approximately 16,800 square kilometers.

Imperial Energy has its own infrastructure which includes pipeline network (360 km in length in aggregate), field processing facilities (at Snezhnoye, Maiskoye & Kiev Eganskoye) and custody transfer stations at Luginetskoye and Zavyalovo flowing oil directly to the Transneft pipeline system.

1. LLC "Nord Imperial"

Nord Imperial holds 3 exploration & production licences representing 3 separate blocks (69, 77 and 80) which cover some 7,500 square kilometers. Imperial has already started production from two of the fields located on these blocks:

  • Kiev-Eganskoye oil field is located in block 80 at the north from Ob river at northern part of the Tomsk region and next to the most oil prolific Russian region Khanty-Mansiiskii kray.  The field has an oil processing facility with a 152 km oil pipeline to Zavyalovo custody transfer station;
  • Snezhnoye and Dvoinoye fields are located within block 77, south of the Ob river. Snezhoye oil field has an oil processing facility and is connected by the 49 km oil pipeline from Snezhnoye oil field with Zavyalovo custody transfer station;
  • Festivalnoye, Central-Festivalnoye and North Festivalnoye fields are located within block 69. A production facility exists at Festivalnoye. Oil pipeline runs from Festivalnoye through North Festivalnoye to Luginetskoye custody transfer station;

2. LLC "Sibinterneft"

  • Sibinterneft holds 2 exploration licenses and 1 exploration and production license representing one block (74) covering some 3,400 square kilometers. The block is close to Imperial’s producing field “Snezhnoe” and to the main Transneft oil pipeline on western bank of Ob River.

3. LLC "Allianceneftegaz"

  • Allianceneftegaz owns 6 exploration licenses and 2 exploration and production licenses representing three separate blocks: 70, 85 and 86.The exploration efforts of Allianceneftegaz concentrate on the most prospective part of the acreage, blocks 70, 85 and 86 which cover over 5900 sq km and are located directly between producing Rosneft and Gazprom Neft oil fields.
  • Maiskoye oil field is located within block 70.  More than 80% of Imperial’s current production come from Maiskoye field. Oil processing facility at Maiskoye exists. A 159 km oil pipeline from Maiskoye oil field to the production facility at Festivalnoye in block 69 through the south Festivalnoye oil field in block 85.

4. Oil service subsidiaries: LLC "Rus Imperial Group" and LLC "Imperial Frac Services"

  • Imperial has 100% owned drilling subsidiary RIG operating 3 heavy duty drilling rigs, 3 workover rigs and a coiled tubing unit. Imperial also owns 50% of Imperial Frac Services (IFS) which provides hydraulic fracture services. 

Summary of Group reserves and resources

In 2005, Imperial had only 228 mmbo of 2P (proven plus probable) reserves. Imperial Energy actively invests to geology exploration what helped to rapidly increase company’s oil reserves and join a list of 10 major companies under SPE system, among those which operate in Russia.

According to independent audit by DeGolyer&MacNaughton, as of December 31, 2008, 2P reserves have reached 946 mmboe (including 866 mmbo and 60 mmboe of gas). As for November, 7 2008 C1+C2 Russian registered reserves are at 666 mmboe. Imperial continues to work with GKZ to upgrade and increase current Russian Registered Reserves.

Production and plans

First production was achieved from Snezhnoye field in March 2006, followed by the Dvoinoye and Maiskoye fields. The post acquisition period has marked a dramatic and exciting change for Imperial by initiation of numerous activities towards enhancement of production and reservoir pressure maintenance. As a result oil production has increased from around 6000 bopd at the time of acquisition to current 13,500 bopd from five of its fields.  Imperial Energy plans to increase daily production to 25,000 bopd by the end of 2010.

With the successful completion of the post merger activities, Imperial Energy is currently engaged in serious long term planning to evolve a complete geological understanding of its producing fields integrating all related data and appraisal program. The Operational Programme of Imperial Energy focuses on bringing the reserves into production through latest oil stimulating techniques and work practices along with the required quality engineering approach and Value Engineering approach.

Apart from these programs, Imperial Energy is engaged in implementation of associated gas utilization programs as required by Russian federal authorities. 

Oil crude sales

Initially, Imperial’s production was sold to Russian domestic market via road tankers. In 2007-2008, the company constructed three pipelines with a total length of 367 km, linking its producing fields to Transneft transportation system and facilitating oil exports. The completion of pipelines gave Imperial Energy the ability to transport its oil production to both domestic and export markets.