Drilling Report

TOTAL FINA SA 5 October 1999 Start-up of Production on the Khariaga Field in Russia TOTALFINA (50%, operator) and its partners, Norsk Hydro (40%) and the Nenets Oil Company (10%), announced today the start-up of oil production on horizons 2 and 3 of the Khariaga field in Russia. The field is located north of the Arctic Circle, in the Timan-Pechora Basin in the Nenets Autonomous Territory. Khariaga is the first onshore field to come on stream in Russia within the framework of a production sharing agreement. Signed in December 1995, the agreement was declared effective on January 1st this year by the Minister of Fuel and Energy, the Governor of the Nenets Autonomous Territory, TOTALFINA and Norsk Hydro. In 1999, TOTALFINA plans to bring three wells into production as part of the initial development of horizons 2 and 3. The first well started production on October 2nd 1999, with a potential of 7,500 bbl/d. It is producing a light high-quality 39 degree API oil. Workover on two other wells are now underway so that they can come on stream in the two coming months. Production during the initial development phase is expected to reach 10,000 bbl/d. The three wells are connected to on-site processing facilities built by TOTALFINA, which can currently handle 10,000 bbl/d. The crude oil is transported from Khariaga to Usinsk (150 km) using the KomiTEK collection system and is then transported via the Transneft system over the 2,400 km to the western border of the Russian Federation, from where it is exported to Europe. TOTALFINA plans to capitalize on this initial success to continue developing this high-potential field.
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