Volga Gas

What Volga Gas does

Volga Gas plc is an independent upstream oil and gas exploration and production company incorporated in England and Wales (2006) and listed on the London Stock Exchange's AIM market under ticker VGAS, with operating assets concentrated in the Saratov and Volgograd regions of Russia and the Republic of Bashkortostan. The company holds 100% of seven exploration and production licenses covering a recoverable resource base of approximately 30 million barrels of oil equivalent (1.64 million tons of oil, 2.6 bcm of natural gas, 0.488 million tons of gas condensate) across the Sobolevskoye, Uzenskoye, Vostochno-Makarovskoye, and Dobrinskoye fields plus the Karpenskiy, Muradymovskiy, and Grigor'evskii license areas.

Its revenue model is built on direct sales of produced hydrocarbons at or near the wellhead and processing plant. Natural gas is sold exclusively to Gazprom through a pipeline inlet at the owned Dobrinskoye gas processing plant into Russia's Unified Gas Supply System. Crude oil and gas condensate are sold directly to customers at production facilities, eliminating or reducing transportation costs, with up to 48% of condensate exported internationally since end-2015. LPG (propane-butane) recovered at a dedicated plant commissioned in 2018 contributes an additional approximately 10% to annual revenue and benefits from exemption from Russia's mineral extraction tax.

The underlying technology base includes conventional and directional drilling, a proprietary Redox gas sweetening system (zero-waste H2S removal), LPG (SPBT) recovery, slim drill technology for suprasalt sediments, and Microsoft Dynamics 365 ERP (the first deployment in Russia's oil and gas sector). Operational management is conducted through three wholly-owned Russian subsidiaries (OOO Gazneftedobycha, OOO Gaznefteservis, OOO Prikaspiyskaya Gazovaya Kompaniya). Ownership is concentrated, with Baring Vostok Private Equity Funds holding approximately 81.28% of voting rights not in public hands, and in December 2020 GEM Capital Holdings (CY) Ltd launched a formal cash offer for the entire issued share capital, initiating a strategic review under the UK City Code on Takeovers and Mergers.

Name

Volga Gas

Legal name

Volga Gas plc

Website

https://volgagas.com

Company type

Public

Founded year

2006

Operating status

Operating

Headcount range

51–100 employees

Short description

Volga Gas is an AIM-listed independent upstream oil and gas company operating seven licenses in Russia's Volga region, producing and directly selling crude oil, natural gas (to Gazprom), gas condensate, and LPG from fields in the Saratov and Volgograd regions.

Ownership category

akta.pro rank

Product category

Oil and Gas Exploration & Production

NAICS

Oil and Gas Extraction (211), Natural Gas Extraction (211130)

SIC

Crude Petroleum & Natural Gas (1311)

akta.pro primary industry

Sour Gas / High-CO₂ Gas E&P (Acid Gas Fields) (EUAAAAAE)

akta.pro secondary industries

Gas Processing Plants (Sweetening, Dehydration, NGL Recovery) (EUALACAD), Acid Gas Handling & Sulfur Recovery (Amine/Claus/TGTU) (EUALACAF), Gas Processing & NGL Recovery (Dehydration, Sweetening, Cryogenic Recovery) (EUALAGAG)

Keywords

• Oil and gas exploration
• Hydrocarbon production
• Natural gas processing
• Crude oil extraction
• LPG recovery

Headquarters

HQ city

London

HQ country

United Kingdom

HQ region

Europe

Offices3 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Personnel, Infrastructure, Technology or R&D, Others

Revenue model

1. Oil Sales: Sale of extracted crude oil. Produced oil is sold directly to customers at production facilities, reducing transportation costs. Sales are made both domestically in Russia and internationally.
2. Natural Gas Sales: Processed gas is sold to meet pipeline standards and sold directly to Gazprom via inlet at the plant. Gas prices in Russia have increased significantly due to government liberalization of the domestic gas market.
3. Gas Condensate Sales: Gas condensate production is sold mainly on the domestic market, with international shipments comprising up to 48% of total production amount since end of 2015.
4. LPG (Propane/Butane) Sales: Liquefied petroleum gas produced from the LPG recovery unit. Additional revenue stream contributing approximately 10% to annual revenue.

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels4 records

Core offering

Volga Gas is an independent oil and gas exploration and production company that extracts and processes crude oil, natural gas, and gas condensate from seven licensed fields in the Saratov, Volgograd, and Bashkortostan regions of Russia. The company also operates an LPG (propane-butane) recovery unit and a proprietary Redox gas sweetening system, selling the produced hydrocarbons directly to customers (including Gazprom) at production facilities both domestically and for export.

Product overview

Volga Gas is an independent oil and gas company operating an integrated upstream portfolio of hydrocarbon extraction and processing assets in the Saratov and Volgograd regions of Russia. The company's core product suite comprises crude oil (from the Sobolevskoye and Uzenskoye fields), natural gas and gas condensate (from the Vostochno-Makarovskoye and Dobrinskoye fields), alongside processed derivatives including LPG (СПБТ/propane-butane) produced at the company's dedicated LPG plant. The portfolio is supported by the proprietary REDOX gas sweetening technology for H₂S removal. Extracted hydrocarbons are sold directly to domestic customers and export markets, with gas delivered via pipeline connection to Gazprom's Unified Gas Supply System (UGSS).

Differentiator

Problem solved

Functional benefit

Products and services

• Crude Oil Crude oil extracted from the Sobolevskoye and Uzenskoye oil fields in the Saratov region, with licenses valid until 2032 and 2031 respectively. Sold directly to customers at production facilities to reduce transportation costs, both domestically and for export.
• Natural Gas Natural gas produced from the Vostochno-Makarovskoye and Dobrinskoye gas/condensate fields in the Volgograd region. Gas is processed to meet pipeline specifications (including H2S removal via the Redox system) and sold directly to Gazprom via inlet at the gas processing plant into the Unified Gas Supply System.
• Gas Condensate Gas condensate produced alongside natural gas from the Vostochno-Makarovskoye and Dobrinskoye fields. Primarily sold on the domestic Russian market with up to 48% exported internationally since end-2015.
• LPG (Propane-Butane / СПБТ) Liquefied petroleum gas (propane-butane technical grade) produced at the company's LPG recovery plant at the gas processing facility. Project cost was $6 million with commercial production achieved within 16 months from project inception, contributing approximately 10% additional annual revenue with a 1.5-year ROI and no additional mineral extraction tax.

Quantifiable outcome

• Production capacity exceeded 5,000 boe/d
• +4 more outcomes

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature5 records

Partnerships

Four partnerships are on record, tiered core.

• SchlumbergercoreTechnology or IntegrationSchlumberger provides advanced logging-while-drilling technology for exploration wells, including PeriScope, ADN, and AdnVision services for Well 101 drilling operation.
• MicrosoftcoreTechnology or IntegrationVolga Gas implemented Microsoft Dynamics 365 ERP system, becoming the first company in the mining/oil and gas sector in Russia to deploy this technology.
• GazpromcoreStrategic or Co-development PartnerGazprom purchases all produced gas via inlet at Volga Gas's processing plant, providing direct access to the Unified Gas Supply System (UGSS).
• Akin Gump Strauss Hauer & FeldcoreImplementation/ SI/ Consulting PartnerLegal advisors to the company for English and Russian law matters.

Scale indicators9 records

Recent moves6 records

Expansion highlights5 records

Broad incumbents

• PJSC Tatneft: Mid-cap Russian integrated oil company with upstream operations concentrated in Tatarstan, adjacent to Volga Gas's Volga-Urals asset base. Comparable on regional reservoir type and tax regime while operating at much larger scale.
• PJSC Gazprom: State-controlled Russian gas giant and the sole offtaker of Volga Gas's natural gas via the UGSS pipeline system. Provides the relevant benchmark for gas pricing, processing tariffs and midstream access in the Russian market.
• PJSC LUKOIL: One of Russia's largest vertically integrated oil and gas majors, with extensive upstream operations in the Volga-Urals region including Saratov. Relevant incumbent benchmark for asset quality, regulatory treatment and regional pricing dynamics.
• PJSC Rosneft Oil Company: Russia's largest state-controlled oil company and dominant upstream producer, including in the Volga region via subsidiaries such as Saratovneftegaz. Sets the competitive and regulatory context for Volga Gas's licensing and pricing.
• PJSC RussNeft: Mid-cap Russian independent oil company with upstream assets across Western Siberia, Volga and Central Russia. Comparable as a non-major Russian independent with diversified regional upstream exposure.

Direct peers

• Caspian Sunrise plc: AIM-listed small-cap upstream E&P operating in Kazakhstan with shallow and deep well programs on the BNG contract area. Comparable to Volga Gas in scale, AIM venue and emerging-market single-country upstream model.
• Tethys Petroleum Limited: Small-cap upstream E&P with operations in Kazakhstan and Tajikistan. Comparable to Volga Gas as a London-listed, CIS-focused independent producer targeting gas and oil in onshore basins.
• JKX Oil & Gas plc: UK-registered, AIM-listed independent upstream E&P with producing assets in Russia and Ukraine. Closest comparable to Volga Gas in terms of AIM listing, small-cap scale, CIS asset focus and direct exposure to regional gas pricing.
• Nostrum Oil & Gas plc: London-listed independent upstream E&P focused on the Chinarevskoye field in north-western Kazakhstan, with gas, condensate and LPG processing. Direct comparable on integrated upstream-to-LPG monetization and CIS regulatory exposure.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/volga-gas-plc

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Subsidiaries3 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Volga Gas