Page 15 - FSUOGM Week 25 2021

FSUOGM PROJECTS & COMPANIES FSUOGM

Gazprom Neft kicks off production

at Tazovskoye field

RUSSIA GAZPROM Neft has kicked off production at much as RUB500bn ($6.9bn) in two gas fields in
the Tazovskoye field in Western Siberia, hailing the Russian Arctic controlled by its parent com-
Gazprom Neft also this as the first field launch in Russia since the pany Gazprom.
plans to invest $6.9bn onset of the coronavirus (COVID-19) pandemic. Gazprom Neft will invest the funds in the
to develop oil at The field’s infrastructure was built under Bovanenkovo and Kharasavey fields, Gazprom’s
two Arctic gas fields severe COVID-19 restrictions, Gazprom Neft. two key projects on the Yamal Peninsula, CEO
controlled by its parent It will serve as the centre of a new production Alexander Dyukov said at the company’s annual
Gazprom. cluster that Gazprom Neft is developing in the general meeting on June 16.
Yamalo-Nenets region, containing some 1.1bn Gazprom Neft has looked to its parent com-
tonnes (8bn barrels) of oil and 492bn cubic pany’s gas fields as a means of expanding its
metres of gas. oil production. Many of these fields contain
Tazovskoye contains 419mn tonnes (3bn undeveloped oil rims and other oil-containing
barrels) of oil and 225 bcm of gas, Gazprom Neft structures. It signed a number of risk-service
said. The project comprises oil and gas wells, a agreements with Gazprom to exploit these
gas-fired power plant, treatment facilities, pipe- reserves in 2018.
lines and an acceptance point, as well as a resi- Gazprom Neft began drilling wells at Gaz-
dential complex for employees. prom’s Chayandinskoye field in East Siberia in
The cluster containing Tazovskoye also con- 2019. It is also targeting oil at the Orenburgskoye
sists of the Meretoyakhinskoye and Severo-Sam- gas field in South Russia.
burgskoye fields, and the two Zapadno-Yubileiny Gazprom Neft did not say how it would
blocks. The assets contain both conventional finance the work at Bovanenkovo and Kharas-
resources and hard-to-recover volumes in deep avey, but it aims to take a final investment
Achimov layers, Gazprom Neft said. decision (FID) in 2022. A decision on how to
“Tazovskoye is the first oil and gas field in transport their liquids to market will be made
Russia, which was put into operation after the in the next two or three months, Gazprom Neft
peak of the pandemic,” Gazprom Neft chairman deputy CEO Vadim Yakovlev said. The com-
Alexander Dyukov said in a statement. “This pany has previously suggested it might use rail
became possible thanks to our effective system transport or construct an oil terminal near Cape
of barriers against COVID-19 as well as digital Kharasavey.
technologies. They made it possible to perform The projects are expected online in 2024-
and control many works remotely, including 2026, and they are anticipated to yield 52mn
using drones.” tonnes (381mn barrels) of crude by 2040.
Gazprom Neft intends to invest more than “Gazprom Neft’s key upstream project
RUB150bn ($2.1bn) in the project in the course for the next five years is coming into clearer
of the next 10 years. The company had previously focus,” Ronald Smith, analyst at BCS Global
courted Royal Dutch Shell as a potential partner Markets, commented in a research note.
at Tazovskoye and the other fields in the cluster. “Capital outlays will be material, but so will
production.”
Arctic investments Smith said the FID seemed a “foregone
Russia’s Gazprom Neft is looking to invest as conclusion.”™

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