08 | 05 | 2008

Q1 2008 Production and Trading Update

Total production for the Sibir group in Q1 2008 increased 50% to a record 5.9 million barrels compared to 3.9 million barrels in Q1 2007.  Sibir group average daily rate of crude production for the period was 64.4 thousand barrels of oil per day (bopd), up from an average 43.3 thousand bopd in Q1 2007. 

 

The weighted average netback on domestic and export crude sales after transportation and export duty and before mineral extraction tax was $40.2/bbl.

 

In the downstream, Sibir’s trading operation processed 9.2 million barrels of crude at the Moscow Refinery in the period, up 101% from 4.6 million barrels in Q1 2007.  Gross margins on product sales from processing averaged $7.3/bbl. 

 

Sibir’s share of fuels sales volumes from its MTK and Mosnefteprodukt retail networks as well as its joint venture with BP totaled 131 million litres.

 

Commenting on the Q1 2008 production and refining results Sibir CEO, Henry Cameron, said, “The first quarter was a period of record production and trading results for Sibir driven primarily by production increases at the Salym fields and increased refining volumes at the Moscow Refinery.  Sibir also benefited from strong prices and netbacks for its crude production and refined products. ”