History
OIL PRODUCTION
The Company’s oil and gas production activity traces back to 1964 and the beginning of an oil producing division “Surgutneft”. Its name is associated with discovery and development of Big Oil in Western Siberia.
The Company was founded on the empty place, in fact – the Ob’ river was the only artery connecting Surgut with the outworld. The region had no permanent construction, not a kilometer of surfaced road, and an off-road vehicle remained the most popular means of transportation until early 1970s.
During fist years of fields’ discovery oil production was seasonal - in warm season oil was barged by the river to the oil refinery in Omsk. In winter time well sites were closed.
The construction of oil pipeline Ust’–Balyk – Omsk in 1967 provided year-round operation of fields.
Climate and landscape of this area made it impossible to use traditional methods to lay out roads, drill wells, construct pipelines and field facilities. In fact, the oil producing division “Surgutneft” was a real testing ground where various technologies and methods were created and applied to develop fields in severe geological and climatic conditions. The division proved to be a true forge of skilled workers for the whole Western Siberia.
By the late 1970s Surgut was considered to be “Siberian oil capital” and had become a centre for the development of the north of Tyumenskaya Oblast. By that time the most powerful electric power base in Europe was constructed in Surgut and included: Surgut Power Plant -1 running on associated petroleum gas, the largest regional building industry base, a railway, motor roads, and an airport.
In October 1977, Surgutneftegas was granted the status of the diversified production association, and in 1993 the association was transformed into open joint stock company (OJSC).
OIL REFINING
Construction of the refinery in the city of Kirishi began in 1961. As was the common practice of that time, the refinery was an All-Union Top Priority Project, and it indeed was built at a rapid pace: as early as December 1965, the refinery received the first oil tank car, and just four months later, in March 1966, it became fully operational, and the first production-run was generated.
In 1972, it became one of the fifth largest refineries in Russia. The production was aimed solely to fueling of the North-West of Russia. After the refinery was commissioned, it helped reverse oil products shortage, which hindered economic development of the North-West of Russia. When the Yaroslavl – Kirishi pipeline was put into service in 1969, the refinery started to process oil delivered from Western Siberia fields. Located close to the Baltic ports, it benefited from exporting oil products to West Europe.
Today, the refinery is one of the most powerful among the operating enterprises of fuel and petrochemical sector. The city of Kirishi with the main backbone enterprise “Kirishinefteorgsintez” is one of the most beautiful cities in Leningradskaya Oblast.
MARKETING
The history of some sales companies such as Lennefteprodukt, Novgorodnefteprodukt, Tvernefteprodukt dates back to the early 20th century and is related to the name of the Nobel brothers who were the Russian pioneers in oil products trade. The territory of Tverskaya Oblast still retains a few hand-riveted tanks of the early 20th century.
The 1920s and even 1930s years of the 20th century – when the country’s industrialization began, witnessed weak development of oil-products’ supplying companies whereas cars were still rare, steam locomotives burnt mainly coal, river and sea vessels just started using mazut as fuel, but the domestic kerosine consumption increased year by year. That time bulk plants were small-sized storehouses with tanks’ capacity of 0.5–2 cubic meters, and oil products’ issue was manual.
In fact, oil-products’ supply companies saw the development only in the late 1940-50s.
Kaliningradnefteprodukt traces its history since 1946, and was organized on the basis of entities of the Shell and NITAG Companies operating in the pre-war period on the territory of Eastern Prussia. Tanks of famous Krupp steel and the only remained pre-war building of the gasoline filling station, alike alive witnesses of time, haven’t changed up to date.
Today, all the sales companies of Surgutneftegas are leading the sector in terms of realized oil-products’ quality, service level, and style originality.
