Alliance Oil Company's total oil production for the second quarter of 2010
amounted to 3.8 mbbl compared to 3.8 mbbl in the first quarter of 2010.
Preliminary refining volumes at the Khabarovsk refinery amounted to 6.0 mbbl in
the second quarter of 2010 compared to 5.6 mbbl in the first quarter.
Preliminary second quarter of 2010 oil products sales amounted to 6.0 mbbl
compared to 5.7 mbbl in the first quarter.
For the first six months of 2010, oil production of the company amounted to 7.7
mbbl (42,300 bpd), refining volumes at the Khabarovsk refinery preliminarily
totalled 11.6 mbbl (64,000 bpd) and oil product sales preliminarily amounted to
11.7 mbbl.
The current crude oil production rate is approximately 44,500 barrels per day.
The Khabarovsk refinery is currently running at approximately 65,000 barrels
per day.
Oil production in the Volga-Urals region totalled 1.9 mbbl in the second quarter
of 2010 compared to 1.8 mbbl in the first quarter. Oil production in the
Timano-Pechora region totalled 1.1 mbbl in the second quarter of 2010 compared
to 1.1 mbbl in the first quarter. Oil production in the Tomsk region totalled
0.7 mbbl in the second quarter of 2010 compared to 0.7 mbbl in the first
quarter. Oil production in Kazakhstan totalled 0.1 mbbl in the second quarter of
2010 compared to 0.1 mbbl in the first quarter.
In the downstream segment, maintenance works on the catalytic reforming unit of
the Khabarovsk refinery started in March and were successfully completed in
early May. A new catalyst was installed, and the capacity of the reforming unit
increased from 2.2 mbbl to 2.5 mbbl per year.
“The second quarter demonstrated stronger demand for oil products which was
reflected in higher refining run-rate and larger sales volumes. Due to
maintenance of the reforming unit, export volumes of naphtha increased to
support higher production in Khabarovsk. The domestic markets remained
attractive for light products, and we shifted some supplies accordingly focusing
on retail and small wholesale segments. However, the volatility in pricing both
for crude oil and oil products affected the netbacks accordingly. In the third
quarter, upstream volumes are improving with successful drilling activity to
yield further production growth. Consequently, we are on track to reach our
upstream production targets for 2010 and we are confident to reach our full year
target for the downstream segment,” says Arsen Idrisov, Managing Director of
Alliance Oil Company.
The company targets to produce 17.0 mbbl of oil in 2010, with daily production
exceeding 50,000 barrels per day at year end. The downstream target for 2010 is
to refine 21.0 mbbl of oil.
For further information please contact:
Arsen Idrisov, Managing Director, Alliance Oil Company, Tel.: +7 495 777 18 08
Eric Forss, Chairman, Alliance Oil Company, Tel.: +46 8 613 00 85
Also visit www.allianceoilco.com
Alliance Oil Company Ltd is a leading independent oil company with vertically
integrated operations in Russia and Kazakhstan. Alliance Oil has proved and
probable oil reserves of 526 million barrels, refining capacity of 70,000
barrels per day and a network of gas stations and wholesale oil products
terminals. Alliance Oil's depository receipts are traded on the Nasdaq OMX
Nordic under the symbol AOIL.
