international magazine
01 / 2004

Many a little makes a mickle

For 11 years since its creation in 1992, oil producer company RITEK has travelled a long path from the minor oil company with annual production volume of 40,000 t (800 b/d) to become one of the largest independent oil producers in Russia with annual output of about 3 mn t (60,000 b/d). Regardless of being a 'minor major', RITEK has a firsthand experience of the issues common to all Russian independent oil producers lack of access to refining facilities and pipeline systems. Just as other independent companies, RITEK suffers from recently implemented tax on natural resources production (NDPI), which is tagged to the price of exported crude. The more interesting is the experience of Valery Graifer's company on improvement of economic indicators achieved by developing new export directions.