Page 6 - FSU OGM Week 22 2021

FSUOGM COMMENTARY FSUOGM

Rosneft's grand gas designs

Rosneft is eager to close the gas supply gap with its domestic rivals

RUSSIA ROSNEFT is Russia’s biggest oil producer by which it obtained Sibneftegaz, Rospan, Samot-
a considerable margin, but the company falls lorneftegaz and a 49% interest in Purgaz, col-
WHAT: far short of its domestic rivals Gazprom and lectively adding 16.7 bcm to its annual supply,
Rosneft's official goal is Novatek in terms of natural gas output. Eager Rystad Energy estimates.
to produce 100 bcm per to close the gap somewhat, Rosneft has several Rosneft expanded its gas production further
year by 2022, although major gas projects on the way and its strategic is through other acquisitions and new projects in
output was under 63 bcm officially targeting 100bn cubic metres of annual Russia such as Vankor. It also produces gas over-
last year. production by next year. seas, including at Nam Con Son in Vietnam and
Rosneft previously hoped to reach this 100 Zohr in Egypt.
WHY: bcm per year goal by 2020, but the 2014 oil Today, roughly half of Rosneft's production
The company launched price crash and subsequent OPEC+ cuts led comes from non-associated gas developments.
its flagship Rospan to inevitable delays. Its gas supply amounted Sibneftegaz is its largest gas production unit,
expansion project earlier to a mere 62.83 bcm last year, down 6.2% from flowing 9.8 bcm in 2020. It operates the Ber-
this year and is preparing the level in 2019. egovoye and Pyreynoye fields and the Khady-
to start production at The company finally brought on stream the ryakhinskiy licence area in the Yamalo-Nenets
Kharampurskoye next next stage of its ambitious Rospan development region. Sibneftegaz is working to maintain its
year. earlier this year, boding well for the growth tra- current extraction rate through infill drilling
jectory. Rospan consists of the East-Urengoysky, programmes and targeting deeper deposits.
WHAT NEXT: Novo-Urengoysky and Resursny blocks in Rospan, Purneftegaz, Purgaz and Sakhalin-1
Delays look likely, with Western Siberia’s Yamalo-Nenets region, which are also key contributors to Rosneft’s gas
Rystad estimating the it together flowed 6.7 bcm of gas in 2019. Rosneft supply.
will produce only 72 bcm is looking to raise this to as high as 21 bcm per A further 33 bcm per year of Rosneft’s gas is
per year of gas next year. year, potentially by next year. associated, produced as a by-product at oilfields.
But it should reach its Rosneft has already expanded its gas busi- This includes gas that is reinjected into reservoirs
100 bcm per year goal ness considerably over the past decade. The first but excludes supplies that are flared. Key sources
towards the end of the major milestone came in 2013, when it com- of this associated gas are Samotlor, the Vankor
decade. pleted its $55bn takeover of TNK-BP, through fields and Yuganskneftegaz.

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