2007 was a year of record production for Sibir. Total production for the Sibir group increased 80% to 17.8 million barrels from 9.9 million barrels in 2006. The average daily rate of production for the year increased to 48.9 thousand barrels of oil per day, up from an average 27.1 thousand bopd in 2006. Sibir expects its total group production to grow to 25 million barrels for the full year 2008.

Sibir’s daily production rate at year-end reached 63.1 thousand bopd, a 62% increase from 38.9 thousand bopd at the end of 2006. The weighted average netback on domestic and export crude sales after transportation and export duty was $34.0/bbl in 2007.

In the downstream, Sibir’s trading operation processed 21.4 million barrels of crude at the Moscow Refinery, up 51% from 14.2 million barrels in 2006. Gross margins on product sales from processing averaged $6.5/bbl in 2007. Sibir expects to process 35 million barrels at the Moscow Refinery in 2008.

Sibir's share of fuels sales volumes from its MTK and Mosnefteprodukt retail networks as well as its joint venture with BP totaled 561 million litres in 2007. Total retail sales in 2008 are expected to exceed 570 million litres.

Commenting on the 2007 production and refining results Sibir CEO, Henry Cameron, said, "2007 was another record year for production at Sibir driven primarily by production increases at Salym. Sibir also benefited from strong prices and netbacks for its crude production and increased oil products revenue from crude processing at the Moscow Refinery. The enormous volume of work associated with converting our Russian accounts into IFRS standards means that we will issue our report on 2007 results at the end of June. We issue this production and products trading overview to assist shareholders in forming a view of the current state of affairs at Sibir."

Tags: Sibir Energy