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					Project name          Associated gas-to-raw stock conversion for the Russian Textile and Industrial Cluster
                      Component of the Russian           Khanty-Mansiysky autonomous region, Yugra
Project location      Federation
                      Address                            Town of Nyagan
                      Company name                       JSC Yugorsk Gas Chemical Company
                      Taxpayer ID                        8601038451
                      Industrial Enterprises Classifier  860101001
                      Year of Formation                  2009
                      Company business(All-Russia        17.1, 24.1, 45.2 etc.
                      classifier of economic activities)
Project manager
                      Sales proceeds                     none
                      1 Major markets –                  Russian Federation, eastern Europe, China
                      Mailing address, phone, fax, E-    14 Pionerskaya str., town of Khanty-Mansiysk, 628012, Khanty-
                      mail                               Mansiysk autonomous region,, Yugra

                      Company CEO                        K.G.Lyats
                      Industry                           Chemical Industry
                      Project objective                  Construction of natural gas chemical facilities for associated gas-to-
                                                         raw stock conversion (recovery) for the Textile Cluster – fiber
                                                         polyethylene terephthalate, PET (fibers and yarns)
                                                         Additional production: products for manufacture of polymers
                                                         (paraxylene, terephthalic acid, PET)
Project description
                      Project profile:
                      Production capacity, types of      180 thousand tons a year (phase 1: until 2015)
                      products, volume of production,    PET quality «for fibers»
                      works, services, yearwise (until   Afterе 2015 increase in production of paraxylene to 1 mln. tons
                      2015)                              annually.
                                    2




Production summary               The first stage of the process at the gas chemical facilities involves
                                 production of up to 110 thousand tons of paraxylene with
                                 subsequent conversion of same to 180 thousand tons of fiber quality
                                 PET
                                 The production chain includes the following basic conversions:

                                    1. Associated gas-to-methanol conversion
                                    2. conversion of methanol to the concentrate of flavor
                                       hydrocarbons (benzene toluene xylene)
                                    3. Conversion of benzene toluene xylene to paraxylene
                                    4. conversion of paraxylene to terephthalic acid
                                    5. conversion of terephthalic acid and ethylene glycol to
                                       polyethylene terephthalate (PET)
|Market Description (domestic    PET: shipments to the Russian Federation (60%), export to eastern
market, export products).        Europe (40%)
Degree of project completion     Preparation of feasibility study
and current project evaluation
Planned Russian and Indian       51%, with further increase to 100%
stakes
Planned number of foreign        None
employees
Planned types of government         1. Provision of right of way (plot of land) with special allocations
support and extent thereof             earmarked for improvement of infrastructure in order to
                                       construct gas chemical facilities
                                    2. Provision of local tax breaks for the first 5 years of operation
                                                                3


                                                               3. To reduce the return on investment period:
                                                                     a. Consider interest rate allowances at the refinance rate of
                                                                         the Central Bank of the Russian Federation with respect
                                                                         to credits obtained for project implementation
                                                                     b. Impose a moratorium on the regional income and
                                                                         corporate property taxes for the first 5 years of
                                                                         operation,
                                                               4. Include the project for construction of gas chemical facilities
                                                                  for associated gas conversion in the Programme of
                                                                  Government support for development and/or implementation
                                                                  of priority investment projects of Khanty-Mansiysky
                                                                  autonomous region Ugra
                                                               5. Add the project for construction of gas chemical facilities for
                                                                  associated gas-to-paraxylene conversion to priority investment
                                                                  projects of the Industrial Cluster Industrial Urals – Polar Urals
Financial evaluation of Total project cost                 20,1 bln.rubles
the project             Russian stakeholders‘ equity to be 10,3 bln.rubles.
                        invested
                        Borrowed funds                     200 mln.rubles
                        Investment schemes                 Project investment
                        Prime project costs                Investment cost
                                                           Operational expenses
                                                           Financial operations, including taxes
                        Project profitability, yearwise    2013 – 16%
                        until 2015 (IRR)                   2014 – 31 %
                                                           2015 – 31%
                        Implementation phases              2010 – 1,81 bln.rubles Discharge measurement station
                        (timeframes, financing, stage-     2011 – 7,24 bln.rubles Construction of gas chemical facilities
                                                             4


                       specific)                          2012 – 7,24 bln.rubles Construction of gas chemical facilities
                                                          2013 – 1,81 bln. rubles Storage and transportation
                                                          2013 – 200 mln. Rubles Financing of operations
Additional information Accounting period of the           3,5 years
about the project      investment phase of the project
                       Payback period                     5
                       Return on investment period        4
                       Availability of business plan or   Preliminary feasibility study
                       preliminary feasibility studies
                       Year project was developed         2009
                       Date certificate was issued        15.12.2009
                       Contact person                     Alexei Alexandrovich Cherkashin
                                                          Тел. +7 (3467) 35-00-36,
                                                          e-mail: CherkashinAA@admhmao.ru
                                                                  5


Name of the project       Construction of gas processing Plant with the capacity of 500,0 million м3 per year
Location of the project   The subject of the Russian Federation                 The Chechen Republic
                          Address                                               The Chechen Republic

The project manager       The name of the enterprise                            The ministry of the industry and energy of the
                                                                                Chechen Republic
                          INN                                                   -

                          Year of establishment                                 -

                          Activity of the enterprise                            75.11 – general government management

                          Profit in 2006-2008                                   -

                          Core market                                           -

                          Address, phone, fax, е-mail                           The Chechen Republic, Grozny, 19/71
                                                                                Cosmonauts Str.
                          Director                                              Mr. O.A. Abdulkarimov

Description of the        Branch                                                Gaz processing
project
                          The project goal                                      Resolving of ecological problems by recycling of
                                                                                oil dissolved gas.
                                                                6


                          The basic characteristics of the project:             500 million м3 gas per year
                          Production Capacity, types of products,
                          Production volumes of foods, works and services for
                          the period up to 2015 (with breakup on years)
                          The brief description of production process           -

                          Description of consumer market (domestic and export   Domestic market
                          market)
                          Current readiness and project expertise               Investment offer
                          Current readiness and project expertise               Investment offer
                          Share of the Russian and Indian participation         To be agreed by sides

                          Share of foreign labour                               To be agreed by sides

                          Government support                                    Foreign investments enterprises in which the paid
                                                                                share of foreign investments in the authorized
                                                                                capital is not less than 30 percent, and income
                                                                                from realization of its own production exceeds 70
                                                                                percent of a total sum of incomes out of
                                                                                production sold by them (works, services) the
                                                                                income tax rate is 13,5 percent (a decrease of 4 %)
Financial estimation of   Total cost of the project                             Rbls. 2820,0 million
the project
                          Own funds of the Russian participants                 -

                          Borrowed funds                                        Rbls. 2820,0 million
                                                                  7


                         Forms of investment                                       Credit

                         The basic expenditures                                    Construction works, equipment and design works

                         Profitability of the project till 2015                    -

                         Realization phases of the project (terms, financing etc.) -

Additional data on the   Settling date of the investment stage of the project      -
project                  Payoff period                                             -
                         Return of investments                                     -
                         Availability of business-plan or Feasibility Report       -
                         Year of development of the project                        -
                         Date of issue of the certificate                          9/9/2009
                         Contacts                                                  Chief expert, Department of investment policy
                                                                                   Mr. U.Bisultanov, Tel. 8-8712-22-48-41
                                                               8
The name of the Construction Gas chemical     complex for production of methanol in Nizhni Tagil
project
Location of the The subject of the Russian    Sverdlovsk Region
project         Federation
                The address                   Nizhni Tagil city, 21, Northern highway
                The name of the enterprise    Closed joint-stock company " Uralmethanolgroup"
                INN                           6623032788
                Year of establishments        2006
                                              ■ Manufacture of the basic chemical substances;
                Activity of the enterprise    ■ Manufacture of other basic organic chemical substances;
                                              ■ Transportation of gas and products of its processing through pipelines;

                                              ■ Storage and warehousing of gas and products of its processing;

                                              ■ Construction works.
The project     Profit from sales in 2006 -   No
manager         2008
                The basic commodity           Russia, Europe
                markets
                Address                      622012, Sverdlovsk Region, Nizhni Tagil, 21, Northern highway
                                             Теl.: (3435 346900
                Fax, е-mail                  Fax: (3435 346911
                                             Е-mail: umg@umg-nt.ru
                Director                     General director Mr. M.A. Gerdt
                Field of activity            Chemical industry.
                Project goal                 Creation of complex for deep processing of natural gas: plant for production of
                                             methanol in Nizhni Tagil of Sverdlovsk Region for export and domestic needs.
                Basic characteristics of the Designed capacity - 600 thousand tons of methanol per year.
                project
                                                            9


                                            Supply of natural gas from ―ITERA‖ till 31/12/2024 (up to 9,9 bln. Cubic m. )
                                            against the Contract No.10-436/07 of 29/12/2007.
                                            Expected economic benefit:
                                            ■ Net equity assets – Rbls. 2 914 million ;
Description of                              ■ Internal rate of return - 32 %;
the project                                 ■ Discount recoupment period - 8,99 years;
                                            ■ Budget effectiveness of the investment project – Rbls. 17 739, 8 million;
                                            Manufacture process of methanol is the following :
                                            ■ Processing of raw feedstock (desulphuring of natural gas);
                 Description of manufacture ■ Steam reforming of natural gas;
                 process
                                            ■ Compression reforming of gas;
                                            ■ Methanol synthesis ;
                                            ■ Methanol rectification (treatment);
                                            ■ Storage of commercial methanol.



                 Description of          Preliminary contracts for supply of methanol have been signed with the following
                 consumer market         companies:
                                         ■ SOLVADIS GMBH (500 000 tons per year);
                                         ■ RMF CHEMICALS (500 000 tons per year);
                                         ■Fritz Egger Gesellschaft m.b. H and Co (150 000-200 000 tons per year);
                                         ■ Joint-Stock Company «Titan Group of companies » (65 000 tons per year);
                                         ■ Company " Kronoshpan " (80 000 tons per year);
                                         ■ " Uralchimplast " (120 000 tons per year);
                                         ■ " HARDWARE USR-KRONOSPLAN Ltd " (48 000 tons per year);
                                                                10


                  Current readiness and    A plot of land - 156384 sq. м. with cadastral number 66:56:0401001:84 in line with the
                  project expertise        long term Lease Contract dt. 8/19/2008 № 88v-2008 (till 6/30/2013. A category of plot –
                                           settlement lands. Permitted use - for designing and construction of a plant for methanol
                                           production with capacity of 600 000 ton per year. Specifications for energy and water
                                           supply and links with railways are already obtained.
                  Prospective share of
                  Russian and Indian
                  participation
                  Prospective share of      -
                  foreign labour
                  Government support       Guarantees from the Government of Sverdlovsk Region

                  Total cost of the project Rbls. 11 250 million
Financial         Own funds of Russian Rbls. 2 900 million
estimation of the participants
project




                  Borrowed funds           Rbls 8 350 million

                  Forms of investment      Credit form of financing .
                                                               11


                 Prime costs                Basic engineering, license, designing, purchase of equipment, construction works.

                 Profitability of the       When a designed capacity is reached, the average profitability without commission and tax
                 project till 2015          (EBIT margin) will amount to 49 %, and net profit (Net present value) - 38 %.
                 Implementation phases      1-st year – Rbls. 232 million ;
                 of the project (terms,     2-nd year – Rbls. 3 100 million ;
                 financing etc.)            3-rd year – Rbls 5 751 million ;
                                            4-th year – Rbls 2 167 million .
                                            Implementation phases of the project according to the Business plan.
Additional data Settling date of the        3,5 years
on the project  investment stage of the
                project
                Project payout time     4,16 years

                 Payback period             9 years
                 Availability of Business
                 plan or Feasibility        Business plan of construction of a factory was developed by company KPMG Limited in
                 Report.                    2008.
                 Year of development of     2008
                 the project
                 Date, when the             12/17/2009
                 certificate was issued
                 Contact details            Mr. V.S. Trifonov, Head of PEO, Tel.+7 3435 34-69-47,
                 Contact person             e-MAIL: trifonov@umg-nt.ru
                                                                 12




                             Description of the project:
Business-idea (purpose) of the Construction of oil refinery complex in Anadyr
project                          with capacity of : black oil М40/М-100 - 180
                                 thousand т in a year, ДТЗ () - 100 thousand т per
                                 year, НАФТА (straight run petroleum) - 50
                                 thousand т per year, ТС-1 - 20 thousand t. per year.
                                 It will reduce the expenses for delivery of mineral
                                 oil in region, decrease dependence on the world
                                 market and will enable to avoid the monopolistic
                                 dictate for delivery prices and create new
                                 workplaces.
Location of the project          Russia, Chukotka Autonomous Region, Anadyr
                                 municipal area, Anadyr
Requirements for the project     The following units are to be constructed:

                                 1. Oil refinery Plant in Anadyr,
                                 2. Oil pipeline dVerkhnetelekaiskoe -Telekaiskoe –
                                 Anadyr - 138 km;
                                 3. Head pumping station;
                                 4. Oil warehouse - volume of 300 cubic m;
                                 5. Oil loading berth in Anadyr port.



Description of the consumer      Heavy oil products will be taken out of the region
market                           and light ones to be used in territory of Chukotka.
                                                                  13


Readiness and project expertise Engineering survey for pipeline have been done.

                          Financial estimation of the project:
Total cost of the project         US$ 300 million
Including:
- Own funds                       -
- Required investments            US$ 300 million
The form of investment            Direct or equity participation (set up of JV with the
                                  license holder)
Labour supply                     1500 persons, including ones, involved for
                                  construction period
Period of implementation          25 years

Schedule of implementation        2011-2015
                              Description of the project: 14
Business-idea (purpose) of the Development of coal deposit "Bukhta Ugolnaya‖ with
project                         production : from 5 up to 12 million tons of coal per
                                year.
Location of the project         Chukotsky Autonomous Region, Anadyr District, near
                                Beringovsky village.
Requirements for the project    The following units are to be constructed:
                                1. Coal-mining plant with production from 5 to 12
                                million tons of coal per year;
                                2. Highway Anadyr – Verkhnee deposit - Telekaiskoe –
                                Beringovsky, length - 320 km;
                                3. Overhead power line VL-110 кВ "Anadyr-
                                Beringovsky", length - 320 km;
                                4. Seaport in Beringovsky with freight turnover of 2000
                                thousand tns.


Description of the consumer      Coal Consumers – Chukotka and Kamchatka power
market                           enterprises, APR countries.

Applied technologies and         Open cast and underground coal mining. Cost of the
prospective cost of the          investment project – Rbls. 35 657 million (as per 2007)
equipment                        including :
                                 - Coal-mining Plant - Rbls. 5 500 million;
                                 - Power line – Rbls. 1 850 million ;
                                 - Highway – Rbls. 13 837 million.;
                                 - Seaport with freight turnover – Rbls. 12 768 million .
Readiness and project expertise Investment Feasibility Report is already done for
                                construction of highway.
                         Financial estimation of the project:
                                                                    15


      Total cost of the project           35 657 million roubles
      Including :
      - Own funds                         -
      - Required investments              Rbls. 35 657 million
      The form of investment              Direct or equity participation (set up of JV with the
                                          license holder)
      Labour supply                       2345 persons, including ones, involved for construction
                                          period
      Period of implementation            30 years

      Schedule of implementation          2011-2016




Name of the project         Talovsky coal energy complex
                            The subject of the Russian Federation                       Tomsk Region
Location of the Project
                            Address                                                     Tomsk Region, Tomsk District
                            Name of the enterprise                                      OOO « Tomsk mining company »
                            INN                                                         7014033030
                            Year of Establishment                                       2002
Project manager
                            Activity of enterprise                                      74.1
                            Profit in 2006-2008г.г.                                     -
                            Core market                                                 SFО
                                                                  16


                          Address, phone, fax, e-mail                           634021, Tomsk, 232, Frunze Str.,
                                                                                Tel/fax: +7(3822) 244164, tomgdk@narod.ru
                          General Director                                      Mr. M.S. Parovinchak
                          Branch                                                Extractive sectors, energy

                          Project goal                                          Development of Talovsky coal deposit for needs
                                                                                of thermal power station
                          The basic characteristics of the project:
                          Production Capacity, types of products,
                                                                                  Construction of «Talovsky» open cast with
                          Production volumes of foods, works and services for the
                                                                                  capacity of 8,0 mln. т of coal per year.
Description of the        period up to 2015 (with year breakup)
project                   The brief description of production process           Open-pit coal mining, delivery of coal by auto -
                                                                                conveyor transport to thermal power station
                          Description of consumer market (domestic and export
                                                                                Tomsk Region
                          market)
                          Current readiness and project expertise               -
                          Share of the Russian and Indian participation         To be agreed by the Sides
                          Share of foreign labour                               -
                          Government support                                    To be clarified
                          Total cost of the project                             Rbls. 17 576,7 million
Financial estimation of
                          Own funds of the Russian participants                 To be clarified
the project
                          Borrowed funds                                        To be clarified
                          Forms of investment                                   To be agreed by the Sides
                          The basic expenditures                                Supplementary expl;oration and geology,
                                                                  17


                                                                                     detailed Feasibility Report, construction and
                                                                                     assembly operations, purchase of mining
                                                                                     transport equipment
                         Profitability of the project till 2015                      -
                         Realization phases of the project (terms, financing etc.)   General construction period is 11 years (from
                                                                                     2008 on 2018). Beginning of production - 2015,
                                                                                     Plant development 8,0 mln. tons of coal - in
                                                                                     2018, 4th year of operation.
                         Settling date of the investment stage of the project        8 years
                         Payoff period                                               -
Additional data on the   Return of investments                                       -
project                  Availability of business-plan or Feasibility Report         Preliminary Feasibility report is done
                         Year of development of the project                          2009
                         Date of issue of the certificate                            -
                         Contacts                                                    Joint-Stock Company « Inter-regional Business-
                                                                                     agency »
                                                                                     Address: 634041, Russia, Tomsk, 70/1,
                                                                                     Komsomolsky Pr. , office 330.
                                                                                     Post Box: 634012, Tomsk, p.o. 898
                                                                                     Tel. . +7 (3822) 210-335
                                                                                     Fax: +7(3822) 21-30-12, Е-mail: mba@irba.ru


Name of the
                     Development of natural gas resources in Novo-Mikhailovsky licensed area
project
                                                                 18


                     Subject of the Russian
Location of the                                     Republic of Khakassia
                     Federation
project
                     Address
                     Name of the enterprise         OOO" Progress-S "
                     INN                            701 712 37 72
                     Year of establishment          2006
                     Activity of the enterprise       74.20.2, 10.10, 11.10, 11.20, 13.10, 14.30, 14.50, 50.50, 51.51, 60.30

                     Profit in 2006-2008            ___________
Project manager
                     Core market                    ___________
                     Address, phone, fax, е-mail    634050, Russia, Tomsk, 14, Lenin's square ,
                                                    Email: post@toleropetroleum.ru
                                                    FAX: (3822 51-61-16 PHONE: (3822 51-02-40, 51-05-54

                     Director                       Mr. N.M.Melnikov
                     Branch                         3 (Extracting)
                     The project goal               Development of natural gas resources in Novo-Mikhailovsky licensed area
Description of the
                     The basic characteristics of  Extraction of natural gas and condensate. Manufacture of the electric power, oil
project
                     the project:
                                                   products.
                     Production Capacity, types of
                     products,                      Parameters           2013 2014 2015 2016 2017                  2018      2019
                                            19


Production volumes of foods, Extraction of
works and services for the   gas, mln.
period up to 2015 (with      Cubic м                   73     200    350     500       650       800      1100
breakup on years)             Extraction of
                              condensate,
                              thous. t            10,35 35,44 63,78 92,13 120,48 148,83 177,18
                              Volume of
                              realization of the
                              electric power,
                              thousand –
                              MGV – HOUR             183      500    875 1250         1625      2000      2750
                              Volume of
                              realization of
                              gasoline, thous.t 5,48 18,78 33,80 48,83 63,85 78,88 93,90
                              Volume of
                              realization of
                              diesel fuel,
                              thous t               4,35 14,88 26,79 38,70 50,60 62,51 74,41
The brief description of     Prospect evaluation drilling in 2010-2012, operational drilling of wells 2013-
production process
                             2018, construction of gas turbine power stations in blocks , construction of
                                condensate processing unit.
Description of consumer
market (domestic and export     Domestic market
market)
Current readiness and project   1 – Development of Feasibility report
expertise
                                                                     20


                    Share of the Russian and            To be agreed
                    Indian participation
                    Share of foreign labour             To be agreed
                    Government support                  Preferential rates of crediting, tax exemption for the period till attainment of
                                                        projected capacity.
                    Total cost of the project           500 million USD
                    Own funds of the Russian            ___________
                    participants
                    Borrowed funds                      300 million USD
                    Forms of investment                 Credits, own company's funds
                    The basic expenditures
                    Profitability of the project till    Parameters              2013 2014 2015 2016 2017 2018 2019
Financial           2015                                 Pure profitability       -36   19   37   39   45   47   56
estimation of the                                                                  %    %    %    %    %    %    %
                    Realization phases of the        Parameter
project             project (terms, financing etc.) s             2010 2011 2012 2013 2014 2015 2016 2017 2018
                                                     Financial
                                                    monetary
                                                    flow            6,1 14,4 60,9 72,9 60,2 40,3 19,7  2,6 28,5
                                                    2010-2012 – geological exploration works,
                                                        2012-2018гг. – construction of units for gas and condensate extraction, purchase
                                                        and installation of gas-turbine installations, installations for condensate
                                                        processing
                                                                    21


                        Settling date of the
                        investment stage of the        9 years
                        project
                        Payoff period                  6 years from the beginning of operation
                        Return of investments          3 years

Additional data on      Availability of business-plan The feasibility report
                        or Feasibility Report
the project             Year of development of the       2009
                        project
                        Date of issue of the certificate 10/09/2009
                        Contacts
                                                       Mr. M.A. Knyazev Tel. 8 382 2 511 790
                                                       Ms. N.V. Yugova Tel. 8 382 510 382


  Name of the project              Development of oil deposits of Kharbizhenskiy
                                   fields in the territory of the Republic of Northern
                                   Ossetia - Alania
  Project goal                      Recovery     efforts,    tests,    development,
                                   commissioning of Lharbizhenskaya oil well
  Location of the Project          Republic of Northern Ossetia - Alania, Mozdoksky
                                   District
                                                                       22


    Estimated capacity                 Balance of oil reserves — 4634 thousand tons.
                                       Recoverable oil - 2320 thousand tons. At
                                       commissioning of one well, the expected annual
                                       production will amount 23-26 thousand tons
    Product                            Oil

    Product application                Meet the needs for oil and products of its
                                       processing
    Readiness of the project           Prospect evaluation survey in Volozhinsky and
                                       Verkhneyursky oil deposits was done by
                                       ―Orenburggasinform‖ and ―Volga Ural‖ companies
                                       in 2000.

    Investment expenses                Rbls. 185 million for commissioning of one oil well

    Performance indications            Recoupment period - 2 years

    Possible forms and conditions Direct investments. Set up a JV with the investor.
    of financing
    The initiator of the Project       Concern " Sevosetinneftegazprom".
                                       General Director – Mr. K.V. Urtaev,
                                       РСО - Alania, Vladikavkaz,
                                       23, Sadonskaya Str.
                                       Tel. (8672) 51-94-95,51-94-65
I




                                   The description of the project
                                                                  23


Business-idea (purpose) of the   Additional geological exploration and oil production
project                          in Verkhne-Echinskoe and Olkhovskoe oil fields.
Location of the project          Russia, Chukotka Autonomous Region, Anadyr
                                 Municipal Area
Requirements for the project     Equipment and expendables for explorations will be
                                 supplied to port Anadyr during navigation period.

Description of the consumer      Unlimited demand for oil and gas in the region and
market                           adjacent territories (enterprises of housing and
                                 communal services, the gold mining and prospecting
                                 enterprises, private motor transport, etc.)
Applied technologies and         Geological exploration including seismic
prospective cost of the          exploration and deep drilling. Purchase of seismic
equipment                        and drilling equipment is not planned, but contract
                                 works of the specialized service companies will be
                                 involved. The equipment will be arranged in
                                 accordance with the volume and physicochemical
                                 properties of hydrocarbons. Preliminary estimated
                                 cost of 2 fields - $41,2 million

Readiness and project expertise Investment offer
                          Financial estimation of the project:
Total cost of the project        $84,6 million ($21,3 million detailed field appraisal,
Including :                      $22,1 million - drilling, $41,2 million - field
                                 construction)
- Own funds                      -
- Required investments           $84,6 million
                                                               24


The form of investment        Direct or equity participation (set up of JV with the
                              license holder)

Labour supply                 Qualified specialists – on rotation basis (workforce
                              from outside the region), auxiliary labor - local
                              population
Period of implementation      20 years



                Investment project
            Name of the               Development of production, storage and realization of pharmaceuticals
            project              and other medical products on the basis of OAO «Ural Pharmaceutical Holding»
                         Subject of the Russian Sverdlovsk Region
                         Federation
                         Address                1. Production of highly purified substances of genetically – engineered
                                                human insulin and up-gradation of current production with double
                                                increase of infusion solutions production.
                                                2. Production of nanoproducts for diagnostics and treatment of
                                                malignant neoplasms
             Location of
                                                3. Production of lyophilic-dried, ampouled and tabletted-capsuled drugs –
             the project
                                                the pilot project:
                                                Production of antiviral medication Triazaverini : OOO ‖Medsyntes», Add.
                                                624130, Novouralsk, 15 Torgovaya Str.
                                                4. Set up of first hydrolitic class glassware production for
                                                pharmaceutical needs : OOO ―Ural glass Plant "
                                                Sverdlovsk Region, Achitsky city district, Ufa
                                                5. Set up of an engineering and logistical infrastructure for the Complex
                                                   25


                                        project : Novouralsk, Uimsky village, V. Pyshma, Sverdlovsk Region.




               Name of the enterprise   OAO « Ural pharmaceutical holding »
               INN                      6658320321
               Year of establishment    08/07/2008
               Activity of the          24.4 Production of Pharmaceuticals
               enterprise
  Project      Profit in 2006-2008      2006 – Rbls.303,1 million
  manager                               2007 – Rbls. 389,9 million
                                        2008 – Rbls. 475,0 million
               Core market
               Address, phone,    620028, Sverdlovsk Region, Ekaterinburg, 28/43, Kirov Str. 36- 40
               fax, е-mail        Tel. . (343) 270-75-34, Fax (343 246-91-56 e-mail: ap@holding-unona.ru
               Director           Mr. O.V. Tereschenko
Description of Branch             Production of Chemicals
the project
               The project goal   Set up of Ural pharmaceutical unit – competitive import-substituting
                                  production complex and concomitant innovative infrastructure for
                                  development, output and realization of new generation pharmaceuticals and
                                  other medical products according to the European GMP standard, to raise
                                      26


                       national pharmaceutical safety of Russia in the most socially significant
                       spheres.
The basic              1. 400 kg of insulin substance, 4 million packings (7 267,5 billion МЕ)
characteristics of     genetically – engineered human insulin (in cartridges and bottles), 21,5
the project:           million packages of infusion solutions per year.
Production             2.550 thousand bottles of liposomal, iimuno-liposimal and others
Capacity, types of     antineoplastic nano-formulations per year.
products,              3.60 tons of triazaverini substance, 12 million packings of antivirus triazaverin
Production             per year.
volumes of foods,      4. 1 billion pieces of glassware of 1-st hydrolitical class (ampoules, bottles,
works and services     cartridges) per year. Planned volumes of product realization:
for the period up to   2010 – Rbls. 957,4 million,
2015 (with             2011 – Rbls. 3 133,3 million.
breakup on years)      2012 – Rbls. 8 133,8 million.
                       2013 – Rbls. 13 027,9 million.
                       2014 – Rbls.21 012,9 million.
                       2015 – Rbls. 24 032,9 million.
The brief              - Completion of R&D works by coauthors of the Project – institutes of the
description of         Russian Academy of Science and Russian Academy of Medical Science,
production process     development of test output of new generation antineoplastic, anti-virus
                       medical products as well as substances of the specified formulations and
                       genetically – engineered human insulin;
                       - Set up of test production and output of experimental batches of the
                       developed medical products for their clinical tests;
                       - Clinical tests of the developed medical products and preparation of set of
                       documents for their registration in Roszdravnadzor of the Russian Federation;
                       - Creation of test field, adjustment and scaling of the developed
                       manufacturing technologies of medical products up to industrial norms;
                                 27


                  - Industrial production of the developed medical products and glass items
                  for its packaging and application - according to the requirements of European
                  GMP standards;
                  - Output of industrial batches of new generation domestic antineoplastic,
                  antivirus medical products and genetically – engineered human insulin – its
                  marketing in the Russian and world pharmaceutical market.
Description of    Consumers of the final products made within the framework of the Complex
consumer market   project, are diabetics, patients with malignant neoplasm, virus infections as
(domestic and     well as Russian and foreign pharmaceutical companies.
export market)    Malignant neoplasm and diabetes - one of the most mass and serious
                  diseases in structure of death rate of the population of Russia: annually in the
                  Russian Federation more than 450 thousand of new oncological patients
                  comes to light and now 2,2 million patients are registered. Annual
                  governmental expenses for procurement of import antineoplastic medical
                  products amount more than 500 million USD, thus, 97 % of antineoplastic
                  medical products are imported.
                  According to the WHO, now there are more than 240 million of diabetics, to
                  2030 their number will reach 380 million. In Russia, I and II type diabetics
                  amount 5 million - the total number of insulin dependent is about 1 million.
                  Every year, Russia spends 300 million USD for purchase of genetically –
                  engineered human insulin
                  During seasonal epidemics from 10 up to 20 % of the population of the planet
                  are affected by the virus infection. Flu affects more than 1,2 billion and 500
                  thousand of them die of complications. In Russia, number of flu and ARVI
                  diseases amount 27 - 41 mln. Persons per year and in addition 7 – 10 % of
                  diseases by other various virus infections. General damage from infectious
                  diseases in the country is Rbls. 60 - 65 billion per year. More than 70 % of the
                  Russian market of antivirus formulations are imported.
                                   28


Current readiness   Some projects in the structure of the Complex Project are in a high stage
and project         of readiness and expert support – including the project on antineoplastic
expertise           nano-formulations, which has already been successful examined and accepted
                    by the Scientific Council and Investment commission of State corporation "
                    ROSNANO ".
                    Business-plans are available for all the projects, experimental batches are
                    already released, clinical tests of medical products are being conducted.
                    Normative and technical documents are finalized, technological documents
                    for production of substances and medical formulations are in the stage of
                    finalistaion, formation and optimization of financial schemes of realization of
                    projects is being conducted.
                    The Structures under the Ural pharmaceutical holding are allocated sufficient
                    industrial areas and buildings for accommodation of industrial productions of
                    medical products and glass containers. Contracts are concluded for connection
                    of the specified buildings to the systems of communications and power supply
                    which will provide functioning in accordance with the requirements of GMP
                    EC, ISO.9001 – 2000 and current Russian standards. Design specifications
                    and estimates for all the projects are being elaborated. .
Share of the        To be agreed with investor
Russian and Indian
participation
Share of foreign   No
labour
Government         During 2007 – 2009 the following support was given by Sverdlovsk
support            Regional Administration within the framework of the project:
                   1) in December, 2007 OOO « Medsintez Plant» was provided with the
                   preferential budgetary credit for 5 years in amount of Rbls. 122 million for
                   production and development of new pharmaceuticals, substances and medical
                                                29


                                 items.

                                 2) Grants has been given from the Regional budget to settle the percent part
                                 under the credits received for implementations of investment projects on
                                 increase of production volumes and development of new types of medical
                                 products : in 2008 – Rbls. 6,0 million, in 2009 – Rbls. 6,4 million;

                                 3) In accordance with the priorities to increase production volumes and
                                 development of new types of pharmaceuticals in Sverdlovsk Region, OOO «
                                 Medsintez Plant » concluded the following state contracts: in 2008 - Rbls.
                                 5,35 million; in 2009 – Rbls. 4,905 million.
                                 The Following actions have been planned for 2010:
                                 1) Grants in the amount of Rbls. 13 mln. to be given from the Regional budget
                                 to settle the percent part under the credits.

                                 2) Purchase of services for the public needs of Sverdlovsk Region in
                                 accordance with the priorities to increase production volumes and
                                 development of new types of pharmaceuticals – Rbls. 7 mln.
  Financial Total cost of the    Rbls. 12 200 million ~ 420 million USD
estimation of project
 the project
              Own funds of the   - Own funds and assets of initiator and performer of the project – Rbls. 2 040
              Russian            million (16,7 %);
              participants       - Government t – Rbls. 420 million (3,4 %)
                                 - Investment funds of ROSNANO Corporation – Rbls. 3 950 million (32,4 %)
                                 - Previously invested funds – Rbls. 1 100 million.
              Borrowed funds     Rbls. 5 790 million (47,5 %)
              Forms of           Different forms of investment are expected for each separate projects within
                                    30


investment           the framework of the Complex Project. It includes : budgetary credit,
                     investment credit, leasing. For implementation of two projects (nano
                     formulations and insulin substances) creation of new joint-stock companies
                     with entering of State corporation " РОSNANO " into their capital and OOO
                     «Medsintez Plant » as the main contractor is in the plan.
The basic            Rbls. 6 880 million – Equipment;
expenditures         Rbls. 2 873 million - construction and engineering works, including premises
                     and sanitary-protective zone;
                     Rbls. 2 150 million - research and development and preparatory works of
                     starting period, including clinical tests, marketing and commodity market
                     formation;
                     Rbls.297 million - payment for licenses, registration of pharmaceuticals,
                     licensing of production etc.
Profitability of the 2012 – 46,2 %,
project till 2015    2013 – 44,9 %,
                     2014 – 50,7 %,
                     2015 - 50,1 %,
                     2016 and further 51,6 %
Realization phases Each project under the Complex Project has the common list of the basic
of the project       stages given in section «Description of production process » - but the schedule
(terms, financing of project realization is different
etc.)                The total period of realization of the Complex Project (including realization of
                     all 5 projects) is 5 years: 2010 – 2014.
                     Financing schedule :
                     2010 – Rbls. 5 735 million.
                     2011 – Rbls. 4 942 million.
                     2012 – Rbls,. 969 million.
                     2013 – Rbls. 379 million.
                                                31


                                 2014 – Rbls.175 million.
            Settling date of the Period of realization and investment :
            investment stage - Production of substances of genetically – engineered human insulin: 2010 –
            of the project       2011.
Additional                       - Production of Nano Formulations for diagnostics and treatment of malignant
data on the                      neoplasms: 2010 – 2014.
  project                        - Production of triazaverini : 2010 – 2011
                                 - Set up production of glassware: 2010 – 2011
                                 - Set up of engineering and logistic infrastructure for the Complex project:
                                 2010 – 2012
            Payoff period        Payoff period – 3 years 7 months, discounted payoff period – 4 years 2
                                 months
            Return of            To be agreed with the investor
            investments
            Availability of      Business Plan and Feasibility Report is ready for each Project.
            business-plan or     Concept Project, Associated Financial Model and financial analysis of the
            Feasibility Report Complex Project is already done.
            Year of              Year of development – 2008, updating – December, 2009
            development of the
            project
            Date of issue of the certificate 17 December 2009
            Contacts               Mr. V.V. Vlasov Tel. (343) 270-75-16, e-mail: vlasovvw@holding-unona.ru
                                                                32


                                          « Production of all-purpose compact gas engines
                                                 and motor - technics on its basis»
Location of the
                The subject of the Russian Federation            Republic Bashkortostan
project
Project manager                                                  OAO" UMPO "
                Name of the enterprise
                                                                 AVL List GmbH (Austria)
                                                                 450039, Bashkortostan, Ufa, 2, M. Ferina Str
                   Address, phone, fax,
                                                                 Tel : (347 238-33-66
                   e-mail.
                                                                 Fax: (347 238-37-44
                   Director                                      Mr . A.V. Artyukhov
The description
                                                                 Production of all-purpose compact gas engines and motor -
of the project     Project goal
                                                                 technics on its basis
                   Basic characteristics of the project
                                                                 Rbls. 3,2 billion per year
                   (production capacity, types of products)
                                                                 Information, organizational, legal and other support, granting of
                   Government support
                                                                 tax privileges according to the legislation
Financial
estimation of the Total cost of the project                   Rbls. 2,7 billion
project
Additional data Availability of Business plan and Feasibility Enterprise avant - project for production of consumer goods
on the project    Report                                       (all-purpose compact gas engines and other items on its basis).
                  Date of issue of the license                September, 2009




Project        Component of the Russian Federation       Krasnoyarsk region
                                                               33


location                                                Village of Vanavara, 17/1 Nefterasvedochnaya str, Evenkiysky
              Address
                                                        municipal district 648490

              Company name                              JSC Evenkiysky fuel and energy company
              Taxpayer ID                               8800002379
              Year of formation                         2002
                                                        11.10.11,11.10.12,11.10.03, 11.10.02,11.20.1,11.20.2,
              Company business (All-Russia classifier
                                                        11.20.3,13.20.41,13.20.42,14.50.22,40.10.14,40.10.2,40.10.5,40.30.14,
              of economic activities)
                                                        40.20,40.30.5,60.24.1,60.24.2,60.30.1,60.30.2,63.12.21,63.12.22,
Project
                                                        23,5 mln. rub. (2006)
manager       2006-2008 Sales proceeds                  28,4 mln.rub. (2007)
                                                        36,6 mln.rub (2008)
              Major markets                             Evenkiysky municipal district, Krasnoyarsk territory
                                                        Prospekt Mira 36 660049, Krasnoyarsk
              Mailing address, phone, fax, e-mail
                                                        Phone/fax +7(3912)591073
              CEO                                       Sergey Dmitrievich Koznov, Director General
Project       Industry                                  Mining
description   Project objective                         Production of hydrocarbons (oil and associated gas)
                                               34


                                        The Company has licenses for exploration and production of
                                        hydrocarbons at Paighinsky oil condensate deposit (valid until 2025)
                                        and Chulakansky license area (valid until 2029).
                                        Recoverable reserves
                                        Oil, mln.tons С1 – 8633 (Paighinsky OCD)
                                        Oil, mln. tons С2 – 1762 (Paighinsky OCD)

                                        Oil, mln.tons С3 -29673 (Chulakansky LA)
                                        GasГаз, mln. cu m , С1 – 1295 (Paighinsky OCD)
                                        Gas, cu m, С2 – 273 (Paighinsky OCD)
                                        Gas, cu m, С3 – 18300 (Chulakansky LA)
Project profile: Production capacity    The Average annual oil output (Paighinsky OCD)does not exceed
                                        10000 tons of oil due to limited local consumption. However, oil
types of products,                      production can be increased to 50000 tons a year without significant
volume of production, works, services   additional investment.
                                        The development strategy consists of two stages: (1) Construction of
until 2015 (yearwise)
                                        the detachable ground surface pipeline to Ust-Ilimsk (2 strings, 1mln
                                        tons a year each) and (2) incremental expansion of crude oil
                                        production to reach the estimated capacity of 2 mln. tons a year by
                                        2016.
                                        2010-2016 Performance
                                                                 2010 2011 2012 2013 2014 2015 2016
                                         Oil production,           74    123 198 885 1400 1750 2222
                                         thousand tons
                                         Well stock                15    25      40   100 131 161 161
                                         Capital expenditures, 180 110 300 200 200                   34     74
                                         USD m
                                         Net proceeds, USD         12    39      62   147 233 293 372
                                              35


                                        m
                                       NPV USD 286 m
                                       IRR 25%
                                       Total capital expenditures – USD 1200 m
                                       Long-term price forecast USD 65/bbl
                                       Discount rate – 14%
                                       The growth model has been developed subject to exemption from
                                       mineral replacement tax and the planned export ‗holidays‘ for the oil
                                       companies of eastern Siberia. The estimates were made without regard
                                       to the the gas factor as it is reasonable to consider this subject to
                                       commissioning of Gasprom‘s gas facilities (Paighinsky oil field is
                                       located near Sobinsky natural gas field)/ In the meantime, we plan to
                                       use the AG to satisfy our own as well as local (gas turbines) energy
                                       needs.
                                       The model can be partially reconsidered in terms of capital
                                       expenditures to build the detachable transportation system as a
                                       result of route changes (Ust Kut instead of Ust Ilimsk, station 6
                                       ESPO pipeline)

Production summary                     Production of hydrocarbons (oil, gas)
                                       Currently, 100% is sold locally (village of Vanavara, Evenkia)
Market description (domestic market,
                                       With an increase in production and construction of the transportation
exports)
                                       system we are planning to export 100% of the output

                                       Pilot development planning approved by Minutes of TSKR #3760 (as
Degree of project completion and
                                       of 27.07.2006)
current project evaluation
                                       Evaluation performed by TEP Krasnoyarskgeofizika and
                                                             36


                                                      Krasnoyarskgazprom (A.A.Kontorovich)

                                                      Drafts and cost estimate documents for follow-up exploration of both
                                                      fields


             Planned Russian and Indian stakes        negotiable
             Planned number of foreign employees
                                                      Any, subject to permission

             Planned types of government support
                                                      Agreements with local authorities can be reached concerning a stake in
             and extent thereof                       construction of gas generator plants operating on associated gas.
             Total project cost                       Approx. USD 1200 m
             Russian stakeholders‘ equity to be       Negotiable
             invested
             Borrowed funds                           negotiable
Financial    Investment schemes                       Debt or equity investment
evaluation   Prime project costs                      Development, follow-up exploration and transportation CAPEX
of the       Project profitability, yearwise, until   60% (2010), 51% (2011), 48%(2012), 51%(2013), 53%(2014),
project      2015                                     54%(2015), 56%(2016)
                                                      Stage 1 (2010-2011) Phase 1 construction of the detachable pipeline
             Implementation phases(timeframe,         transportation system to Ust-Ilimsk, construction of facilites at the
                                                      Payghinsky field, follow-up exploration, expansion of well stock,
             financing stagewise)
                                                      follow-up exploration of the Chulakansky license area. Financing –
                                                      borrowings and operational proceeds.
                                                                 37


                                                       Stage 2Этап 2 (2012-2015) Phase 2 construction of the detachable
                                                       pipeline transportation system. Expansion of well stock of both fields.
                                                       Increase in the annual output to 2 mln. tons. using mostly operational
                                                       proceeds.
              Accounting period of the project
                                                       2010-2012
              investment stage
              Payback period                           4 years
Additional    Return on investment period              5-6 years
information Availability of a business plan or
                                                       TEP Krasnoyarskgeofizika-Krasnoyarskgsprom,
about the     preliminary feasibility studies
project       Year Project was developed               2006
              Date the certificate was issued          2009-10-29
                                                       Yuri Eugenievich Bokanev, +7(495)783-8430
              Contact person
                                                       yb@angaragold.com



                                            «Tuimazinsky Plant of agitating trucks»
                                    for creation of special equipment on the basis «КамАZ»

Lacation of the
                    The subject of the Russian Federation Republic of Bashkortostan
project
Project manager     Name of the enterprise                Tuimazinsky Plant of agitating trucks.
                                                          OAO КамАZ "
                    Address, phone, fax,                  452754, Tuimazy, 17, Street of 70 years of October,
                                                                38


                     e-mail.                                TеL.: (34782 7-10-11
                                                            Fax. (34782 7-34-61
                                                            423827, Russian Federation, Republic of Tatarstan, Naberezhnye
                                                            Chelny, 2, Avtozavodsky Prospect
                                                            Tel: (8552) 38-00-80
                     Director                               Mr. V.I.Khazov
Description of the
project
                                                            Production of special vehicles with ―multilift‖ system on chassis "
                                                            КамАZ "-
                                                            20 units in 2009 (80 units by 2012)
                     The basic characteristics of the
                     project (production capacity, types of
                                                            Production of fire fighting vehicles (tankers) on chassis " КамАZ " -
                     products)
                                                            86 units in 2009 (196 units by 2012)

                                                            Production of crane trucks on chassis " КамАZ" - 120 units by 2011


                     Government support                     Information, organizational, legal and other support, granting of tax
                                                            privileges according to the legislation.
Financial            Total cost of the project
estimation of the                                           Rbls. 171 million.
project
Additional data      Recoupment period                      1,3 years
on the project                                              1,3 years
                                                            3 years
                     Date of issue of the certificate       September, 2009
                                                            39


The name of the project      « Recycling of Associated Petrol Gas (APG) »
Location of the project      The subject of the Russian Federation    The Samara Region
Project Manager              Name of the enterprise                   OOO ―Samara Prom Leasing‖
                             Address, phone, fax, e-mail              (846) 276-68-25,276-68-26
                             Director
Description of the project   Branch                                   3
                             Project goal                             Set up a mobile modular complex for treating and
                                                                      recycling of APG with production of pentane-
                                                                      gexane fractions, propane-butane mixtures and
                                                                      liquefied mixture of ethane and methane
                             Brief description of production process  This technology allows to utilize APG
                                                                      immediately at oilfields. The modular principle of
                                                                      construction of the complex allows to optimize its
                                                                      use on deposits with a different specific output and
                                                                      component structure of APG by selection of
                                                                      optimum quantity and structure of modules.
                                                                      Productivity of the complex can be varied over a
                                                                      wide range: from 70 million cubic.м per year up to
                                                                      1000 million. cubic м per year by selection of
                                                                      sufficient quantity of functional modules. The
                                                                      basic variants of recycling and use of APG are:
                                                                      Manufacture of electric and thermal energy in
                                                                      cogenerational installations (at production place
                                                                      or after transportation of gas to the power unit);
                                                                      gas liquefaction and delivery to chemical
                                                                      enterprises, its realization as commercial fuel,
                                                                      including export.
                             Readiness and project expertise          The project is ready for introduction
                                                                   40


                                Share of the Russian and Indian             -
                                participation
                                Share of foreign labour                     -
                                Government support                          -
                                Estimated cost of the project               1120, including :
                                                                            Research and development – 103; Test output -
                                                                            1017
Financial estimation of the     Required investments.                       Rbls. 1120 mln.
project                         Period of Implementation                    5 years
                                Period of implementation                    5 years
                                 Index of effectiveness
                                Net present value

                                Date of issue of the certificate            9/8/2009
                                Contacts


Name of the project           « Set up of universal gas liquefier complex »
Location of the project       The subject of the Russian Federation       Samara Region
                              Name of the enterprise                      Research-and-production association « Povolzhsky
                                                                          Aviation technology institute (" NPO " Povolzhsky
                                                                          AviTI »)
                              Director                                    General Director – Mr. A.G. Marishin
                              The post address, phone, fax, e-mail        443022, Samara, 18, Zavodskoe highway,

                                                                         Tel. (846) 992-60-20,992-02-07, 992-68-86
Project manager               Branch                                     10
                              The purpose of the project                 Recycling of GOSP gas.
                                                                         Methane liquefaction , Nitrogen, oxygen and
                                                                  41


                                                                       hydrogen liquefaction
                                                                       The purposes of the project:
                                                                       1. Use of methane as a motor fuel for:
                                                                          Railway transport;
                                                                          Automobile transport;
                                                                          Aaviation;
                                                                          Space engineering;
                                                                          Water transport.
                                                                       2. Prompt gasification of the out settlements by non
                                                                       construction of expensive gas pipelines.
                                                                       3. Supplies of liquid methane by Gazprom for
                                                                       European consumers, bypassing of gas-transport
                                                                       system of the European countries.
                                                                       4. Creation of extra and reserved sources of power
                                                                       and thermal energy in gas liquefier complexes.
                                                                       5. Re-implication of exhausted wells in the European
                                                                       part of Russia.
Description of the project     Readiness and project expertise         Project
                               Estimate value of the project           Rbls. 1102,45 million
                               Required investments, mln. Rbls         Rbls. 1007,45 million.
                               Own funds                               Rbls. 25,0 million.
                               Forms of investment                     Borrowed funds
                               Normative period of the project:        2 years
                               Forms of investment                     Borrowed funds
                               Date of issue of the certificate        9/8/2009
                               Contacts                                (846) 992-62-07, 992-68-80


Project name                 Zhuravsky oil field
                                                            42


                      Component of the Russian Federation          Stavropol territory
Project location
                      Address                                      333 Odnokozov str., town of Blagodarny
                      Company                                      LLC Zhuravskoye
                      Taxpayer ID                                  2635072555
                      Year company was established                 2004
                      Company business (All-Russia classifier of   Production of crude oil and associated gas - 11.10.11;
                      economic activities)                         Wholesale of other liquid and gas fuels – 51.51.3;
                                                                   Prospecting and exploration, logging, geochemical
                                                                   surveys - 74.20.2
                      2006-2008 sales proceeds                     102,4 mln.roubles (inclusive of VAT)
                      Major markets                                Oil is sold to small-scale oil refiners
                                                                    of the south federal district, including.:
Project manager
                                                                   - Stavropol territory,
                                                                   - Krasnodar territory,
                                                                   - Republic of Kabardino-Balkaria
                                                                   - Republic of Kalmykia
                      Mailing address, phone, fax, e-mail          333 Odnokozov street, town of Blagodarny, 356423,
                                                                   Stavropol territory
                                                                   Phone/fax: (86549) 5-05-84
                                                                   e-mail: APavlyuchenko@zhurav.itera.ru,
                                                                   VIsakov@zhurav.itera.ru.
                      Company CEO                                  Magomed Askhabovich Sultygov
                      Industry                                     Mining
                      Project objective                            The Zhuravsky oil field currently offers very attractive
                                                                   medium and long-term investment opportunities. In
Project description
                                                                   terms of resources and proven reserves the Zhuravsky
                                                                   oil field is one of the biggest in the Stavropol territory.
                                                                   2. Output can be significantly increased by drilling new
                                     43


                                            oil wells, sidetracked holes (STH) and lateral wells. The
                                            project has a good potential for stimulation of
                                            production and validation of innovative technology.
Project profile:                            Size of the asset :
Production capacity,                         Total recoverable oil reserves of the license area
products,                                   that appear on the state balance: С1 - 6,8 mln. tons, С2
volume of output, operations and services   – 1,3 mln.tons;
until 2015 (yearwise)                        Throughout the period of production testing of
                                            appraisal wells a total of 86 thousand tons of oil was
                                            extracted or 1% of original recoverable reserves.
                                            Quality of the resource potential:
                                             License validity for the Zhuravsky oil field -
                                            December 2019
                                             The producing reservoirs are no more than 2100-
                                            2200 m deep;
                                             High formation pressure (anomaly ratio -1,45)
                                            makes for a significant period of natural flow
                                            production ;
                                             The commercial oil content has been proved by
                                            appraisal well tests
                                            Potential for reserves growth:
                                            The resource potential can be increased by acquiring at
                                            the auction the Vorobievsky oil field which is a natural
                                            extension of the Zhuravsky oil field. The reserves of the
                                            Vorobievsky oil field appearing on the state balance are
                                            as follows: С1-5,2 mln.tons and C2- 8,0 mln.tons;
                                             As shown by a number of seismic exploration
                                            operations and exploration drilling the field has some
                     44


                          prospective structures. The Novoselitsky area (C3-5
                          mln.tons), which is on the southern border of the
                          Zhuravsky and Vorobievsky oil fields, appears on the
                          federal list of areas subject to geological surveys,
                          Production growth potential:
                           The output can be significantly increased by
                          drilling new wells, sidetracked holes (STH) and lateral
                          wells.
                           The project has a good potential for stimulation of
                          production, including validation of innovative
                          technology and TSO (fracturing).
                          Oil properties:
                          The oil from the producing reservoir falls under the
                          following categories; naphtheno-paraffin base crude oil,
                          sweet (0,14%), tarry (5%), high-paraffin (up to 10%)
                          with a high yield of light fractions, at 300 0C-52%.
                                 Reservoir density – 668 kg/m3, surface density -
                          850 kg/м3 .
                                 The oil from the Zhuravsky oil field allows for
                          production of high quality diesel fuel.
Production summary        Natural flow production method is used for oil
                          extraction at the Zhuravsky oil field.
                          The oil products from wells (crude oil) via the pipelines
                          flow to the oil gathering storage vessels (volume – 50,
                          80, 200) from which they are carried over to filling
                          stands for further transportation by oil tank trucks to oil
                          treatment units with subsequent blowing off into oil-
                          gathering bullits (volume -200 m3).
                                    45


                                              Crude oil is then treated and stabilized to achieve
                                              commercial quality in compliance with Russian
                                              Standards GOST R 51858-2002.
Market description (domestic market, export   The oil is sold to small-scale oil companies of the South
shipments)                                    Federal District, inclusive of.:
                                              - Stavropol territory,
                                              - Krasnodar territory,
                                              - Republic of Kabardino-Balkaria
                                              - Republic of Khalmykia
Degree of project completion and current      From 2005 to 2009, necessary permits were prepared
project evaluation                            for project implementation. The project «Construction
                                              of facilities at the Zhuravsky oilfield for the period of
                                              pilot production» was developed and underwent state
                                              expert evaluation. This project involves construction of
                                              oil gathering mains, energy supply to the oil treatment
                                              unit site and technological access ways to the wells and
                                              other operations.
                                              Production tests are currently being carried out at the oil
                                              field. 2009-2012 Pilot project plan for the Zhuravsky
                                              oil field is available.
                                              The Zhuravsky oil field is scheduled to be launched into
                                              operation in 2013 in compliance with duly approved
                                              and reviewed licenses to develop it.
Planned Russian and Indian stakes             At the moment Moscow-based LLC NGK Intera has a
Planned number of foreign employees           100% stake in LLC Zhuravskoye. Therefore, decisions
                                              on shareholdings by Russian or foreign partners as well
                                              as the number of foreign employees are made by the
                                              owner.
                                                                 46


                          Planned types of government support and       -
                          extent thereof
                          Total project cost                            Additional site exploration operations are currently
                          Russian stakeholders‘ equity to be invested   under way at the oil field. Also, to ensure efficient
                          Borrowed funds                                operation of the oil field and plan further interventions
                          Investment schemes                            it is currently undergoing production testing. Thefore, it
                                                                        is not possible to determine the total project cost.
                                                                        The project will be financed with loans to be extended
                                                                        by the owner – oil and gas company Intera.
                          Prime project costs                           1.Capex. including:
                                                                        - Construction of oil field facilities
                                                                           (oil production, oil gathering and transportation
                                                                        equipment , energy supply and communications,
                                                                            Road construction and others);
Financial evaluation of                                                 - well drilling.
the project                                                             2. Interventions, inclusive of.:
                                                                        - reactivation of wells;
                                                                        - geological and field research
                                                                        3. Operational costs:
                                                                        - oil treatment;
                                                                        - Workovers and servicing of wells;
                                                                        - Electricity and others
                                                                        4. Tax payments:
                                                                        - Mineral replacement tax (oil);
                                                                        - Corporate property tax;
                                                                        - Corporate income tax.
                          Project profitability until 2015 (yearwise)   -
                          Implementation phases (timeframes,            -
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                         financing stagewise)
                         Accounting period of the project investment      -
                         stage
                         Payback period                                   -
                         Return on investment period                      -
                         Availability of a business plan or preliminary   -
Additional information
                         feasibility studies
about the project
                         Year project was developed                       -
                         Date certificate was issued                      -
                         Contact person                                   Principal economist Alexei Vladimirovich
                                                                          Pavluchenko.
                                                                          Phone: (86549) 5-05-85
                                                                          e-mail: APavlyuchenko@zhurav.itera.ru

				
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