Volga Gas is an independent oil and gas company which is engaged in geological exploration and production of oil, gas and gas condensate in the Saratov and Volgograd regions, as well as the Republic of Bashkortostan.
We have 100% interest in five licences in the Volga region. We carry out geological exploration, as well as production of oil, natural gas and gas condensate.
The products of our fields are all sold into the domestic market in Russia and in export markets in neighbouring countries. As our fields are located in a region with a substantial local demand, the prices we achieve are advantageous relative to more remote producing regions such as Siberia.
-The prices of oil and condensate in the domestic market in Russia have historically reflected the export price of crude oil, adjusted for the significant export taxes charged by the Russian government in accordance with an oil price based formula. Regional prices also reflect the cost of transportation between the point of production and the point of sale.
-Since 1 January 2015 the Russian government reduced the rate of export taxes on oil and significantly increased the rates of taxes charged on production of oil, gas and condensate.
-Gas prices in Russia have increased significantly in recent years in accordance with Russian government policy of liberalising the domestic gas market. For information on Gazprom Mezhregiongaz please click
A summary of the rates of taxes imposed on oil and gas production and sales in Russia can be found here
. Full details of the tax code can be found here
The Company currently has significant exploration and development acreage. The Company intends to grow its revenue by continuing development of its current fields and by effective exploration of its existing acreage. It aims to manage the costs of exploration, development and production of hydrocarbons on its current licence areas by retaining contractors appropriate to the complexity of the specific project. Volga Gas has used turn-key contracts with international contractors with extensive experience of managing the exploration and appraisal of complex reservoirs such as
Karpenskiy sub-salt structures, while engaging local contractors to exploit less technically demanding fields such as the supra-salt structures and the Vostochny-Makarovskoye and Dobrinskoye fields.
The Company intends to utilise management's local knowledge and experience to identify, acquire and exploit undervalued gas assets in Russia. Acquisitions of licences will be pursued on an opportunistic basis, whether through government auctions, or through corporate acquisitions, if the
Company believes such assets can add material value either by creating synergies with existing assets or through the application of the latest technology.
Optimise Access to Markets
The Company intends to focus on ensuring that produced gas will have the most effective route to end-customers at the highest possible netback sales price. To achieve this, the Company has focused on acquiring licence areas where it believes that it can readily access the UGSS operated by Gazprom, as well as serve local demand.
A description of the Boards responsibilities and constitution of the Board Committees can be found here.