PJSOC Bashneft has completed the reorganization of Burneftegaz Group aimed at simplifying its corporate structure and improving its management efficiency.

The reorganization has involved consolidation of LLC Burneftegaz, LLC Tortasinskneft, LLC Berezovskneftegaz and LLC OFIS-2010 with LLC Sorovskneft. Yesterday, a tax authority registered the winding up of consolidated companies, whose assets and liabilities were transferred to LLC Sorovskneft as a result of the reorganization.

The reorganization of Burneftegaz Group was approved by Bashneft’s Board of Directors in December 2015 in accordance with a directive of the Government of the Russian Federation.

Note: LLC Sorovskneft conducts geological exploration and produces oil in the Tyumen Region (Khanty-Mansi Autonomous District-Yugra). The company holds the rights to exploration and development of the Sorovskoye field (the Vostochno-Vuemskiy licence area) and the Tortasinskoye field (the Tortasinskiy licence area) and to geological exploration at the Severo-Ityakhskiy 3 and Vostochno-Unlorskiy subsoil areas. Commercial production at the Sorovskoye field started in 2013. According to Miller and Lents, as of December 31, 2015 total (3P) oil reserves at the Sorovskoye field amounted to 330.5 million barrels. In 2015 oil production at the Sorovskoye field totalled 1.8 million tonnes.