Sibneft is one of Russia's largest integrated oil companies. Our operations include oil exploration, production, and exploitation, and continue downstream to the refining and distribution of high quality petroleum products.
Sibneft was formed in September 1995 as a result of privatization. We achieved full integration of upstream and downstream operations in May 1996. Although we are a young company, operating subsidiaries such as Noyabrskneftegas (E&P;) and the Omsk Oil Refinery, bring us decades of expertise. Our proven reserves (equivalent to A+B+C1), in a preliminary estimate of Miller and Lents, amounted to 556 million tons as of January 1, 1998. Using the Russian classification for proven reserves, the amount increases to 704.5 million tons (5090 million barrels).
Our production figures remain on target. In 1997, we produced 18.2 million tons of crude oil (359,000 bpd) representing approximately 6% of the total Russian crude oil production. These figures ranked us as the 7th largest oil producer in Russia. In light of the sustained low oil prices in 1998, we cut our production by 4.7% and revised our target levels to 342,000 bpd.
Along with increased production capacity, we have also steadily increased our exports. In 1997, we exported 4.8 million tons (95,000 bpd) or 26.4% of our total crude oil production for that year. In the first half of 1998, we increased our exports to 3.04 million tons (120,000 bpd). (what percent of total crude do these exports represent it would be interesting for potential stock holders and investors to see an upward trend in percent of crude exported - especially in terms of increasing revenue).