History

 

The history of Surgutneftegas oil-producing company starts back in October 1977. It was given the status of a diversified production association, and in 1993 it was transformed into a joint stock company of an open type. Surgutneftegas, as a vertically-integrated company, has been operating on the market for just over 20 years.

The enterprises affiliated by the Company have quite a rich history – a half century experience in oil production, over 40 years in oil refining, from 50 to 100 years in oil-products supply. 

OIL PRODUCTION

 
In 2014, «Surgutneft», the Company´s oldest oil and gas production division, turned 50. Its name is associated with the era of the Big Oil in Western Siberia.

The oilfield enterprise was literally created on a «green field» almost in the middle of nowhere – for Surgut, the Ob’ river was the only link with the rest of the world. There was not a single solid or permanent building in the area, not a kilometer of a hard-surfaced road, and an all-terrain vehicle (ATV) remained the most popular means of transportation until early 1970s.

In the first few years of field development oil production was seasonal - in the warm season the oil was barged by the river to the Omsk oil refinery. The wells were shut down for the winter time.

The fields became operational all year round after the Ust’-Balyk – Omsk oil pipeline was built in 1967.

The local climate and terrain made it impossible to use conventional methods for building roads, wells, pipelines and field facilities. In fact, «Surgutneft» oil producing division served as a testing ground where various methods and ways of field development were created and tried out to suit harsh geological and climatic conditions. The division proved to be a true talent foundry for all the oil and gas producers in Western Siberia.
 

OIL REFINING


Construction of the Kirishi refinery began in 1961. As was common practice of that time, the refinery was announced 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, the first production was generated.

In 1972, Kirishinefteorgsintez production association was among five largest refineries in Russia. The production was aimed solely at providing fuel for the North-West of Russia. Once the refinery was online, it ended the shortage of oil products that was hindering economic development of the region. When the Yaroslavl – Kirishi pipeline was commissioned in 1969, the refinery started to process oil from Western Siberia fields. Located close to the Baltic ports, it benefited from exporting oil products to Western Europe.

In December 2013, upgrading its Kirishi refinery, OJSC «Surgutneftegas» built and put into commercial operation Europe’s largest deep conversion plant. With the main backbone enterprise «Kirishinefteorgsintez», the city of Kirishi is one of the most beautiful cities in Leningradskaya Oblast nowadays. 

MARKETING


The history of some sales companies such as Novgorodnefteproduct, Tvernefteproduct dates back to the early 20th century and is related to the name of the Nobel brothers who established the first Russian enterprises in petroleum trading. There still can be found a number of hand-riveted tanks made in the early 20th century in Tverskaya Oblast.

The 1920s and even 1930s – when the country’s industrialization began – witnessed weak development of petroleum supplying companies since cars were still rare, steam locomotives burnt mainly coal, river and sea vessels just started using mazut as a fuel, but the domestic kerosine consumption increased year by year. Oil tank farms, small storage facilities with tanks 0.5–2 cubic meters, were built at that time; oil product custody transfer was performed manually.

In fact, it was not before the late 1940s and early ’50s that petroleum product suppliers gained some ground.

The history of Kaliningradnefteproduct can be traced back to 1946 – the Shell and NITAG facilities operating in the pre-war period in Eastern Prussia were used for the new enterprise. The tanks made of the famous Krupp steel and the only remaining pre-war building of the gasoline filling station, like alive witnesses of the time, haven’t changed to the day.

At present, all the sales companies of Surgutneftegas are leaders in their regions in terms of quality of marketed oil-products, the level of service, and the style originality.