"Current state of problem of rational associated petroleum gas use in Russian Federation"

1. "Current state of problem of rational associated petroleum gas use in Russian Federation" General Director LLC "EcoNefteGazControl" Alexey N. Aksenov

2. Level of APG utilization by the leading Russian oil companies Level of APG utilization, % Year

3. Resources of the useful components in APG (according to Russian State Statistics Service) Volume, thou. tons sulfur ethane propane butane pentane and higher (stable condensate) Year

4. Main reasons for wide-scale associatedpetroleum gas flaring

5. In order to commercialize APG, following will be required: • Joint efforts of oil producing and oil processing companies; 2. Well-planned long-term strategy of the Government including, along with state control and monitoring, the mechanisms to stimulate investment projects involving APG utilization with innovative technologies and equipment.

6. Summary register of flair devices of oil & gas companies by Russian Federation territorial subdivisions

9. Bottlenecks in the production chainfrom well to the output of liquefied hydrocarbon gases

10. Share of flare systems in their total number in terms of APG quantity burned

11. Following approach can be utilized to attract funds for comprehensive programs of APG use and processing : Oil companies and Russian Federation territorial subdivisions jointly invest into APG pipelines; Gas and chemical companies and federal center (e.g., within Federal Target Program) invest to create infrastructure for the sales of Gas processing plant products (filling racks, pipelines for dry gas and broad fractions); All parties have a share of profits (from the sales under the entire program) proportional to contributed investments.

12. THANK YOU!