ROGTEC Magazine - Russian Oil & Gas Technologies - News, Reviews & Articles

ROGTEC Magazine - Russian Oil & Gas Technologies - News, Reviews & Articles

Gazpromneft-Khantos Appoints Sergey Doktor as CEO

Wednesday, February 29th, 2012

The Gazpromneft-Khantos  Board of Directors has appointed Sergey Doktor as the company’s Chief Executive Officer.

Sergey A. Doktor was born in 1969. He graduated from Tomsk Polytechnic University with a specialization in development and production of oil and gas fields.

Since May 2011 until his new appointment Sergey Doktor has been the Member of the Board, the Deputy CEO and the Chief Engineer at Slavneft-Megionneftegaz. In 2006 he headed the Department of Production at Slavneft-Megionneftegaz.

Between 1996 and 2004 Sergey Doktor worked his way up from the lead engineer of the well maintenance unit to the head of the well maintenance department at Slavneft-Megionneftegaz. Prior to that, from 1991 he had held various positions in the companies which later merged into Slavneft-Megionneftegaz.


The Oil&Gas Procurement Conference Neftegazsnab-2012 will be started on March 15.

Wednesday, February 29th, 2012

The 7th International Conference “Oil&Gas Procurement” (NEFTEGAZSNAB-2012) will be held on March 15 in Moscow, in the Radisson-Slavyanskaya Hotel.

NEFTEGAZSNAB is the most wide-scale Russian event uniting the heads of the oil and gas procurement services.  The conference provides the room for exchanging experience and discussing the procurement systems of the different enterprises within the industry.

The key objective of this event is to form the transparent and open aimed to select the suppliers to the oil and gas companies. The contractors will be able to contact their customers and colleagues, to broaden outlooks and to set useful business links. Speakers of the Conference:  Stanislav Mescheryakov, Director of the Department for Material Supply, NK Rosneft; Alexander Avramenko, Head of procurement Department, Tatneft OJSC; Mikhail Shuluak, Head of Procurement Department, NOVATEK OJSC; Yury Osipenko, Head of ESPO Department, HMS Group LLC; Marat Fattakhov, Chairman of the Board of Directors, OZNA Holding Company OJSC.
The Conference’s agenda will include the discussion titled “Procurement Choice:  Buying Russian or foreign equipment.  Pros and contras”.

The Russian manufacturers will answer the following questions:  Why a consumer should buy the Russian-made equipment: its advantages and equal qualities compared to foreign analogs.  The issues to be discussed include the pricing policy, servicing and supplier discipline.

Foreign manufacturers will share their plans on operation on the Russian market, including localization of their manufacturing facilities in Russia.

The users will explain their reasons for procuring the imported equipment and give practical recommendations to the suppliers.

Participants of the discussion:  Abdulla Karaev, Director of the Directorate for Procurement and Capital Construction, Gazprom neft; Semen Yakovlev, Chairman of the Bidding Committee, Transneft; Stanislav Mescheryakov, Director of the Department for Material Supply, NK Rosneft; Fedor Trufanov, Head of procurement Department, RussNeft OJSC; Vladimir Kitaev, Director of procurement Department, Bashneft OJSC; Vladimir Ashikhmin, Deputy General Director, Surgutneftegaz OJSC; Artem Borodin, Head of Department for Procurement and Tendering Activities, Yamal LNG OJSC; Oleg Yartsev, Head of Division, Sibur LLC.

The Russian and foreign manufacturers of piping, cables, electrical products, pumps, compressors and other types of the oil and gas equipment are invited to take part in this discussion.


To register for participation in the Conference, please contact
: (495) 514-44-68, 514-58-56; fax: (495) 788-72-79,;

Dragon Oil: Dzheitune 28/166 Well Tests at 1,975 Barrels per Day

Wednesday, February 29th, 2012

Dragon Oil plc, an international oil and gas exploration, development and production company, announces the successful completion and initial testing of the Dzheitune (Lam) 28/166 development well. The well was completed with a single string to a depth of 2,810 metres and tested for initial production at 1,975 barrels of oil per day. The rig has skidded to the next slot and spudded the Dzheitune (Lam) 28/169 well.

We are currently completing the Dzheitune (Lam) C/167 well with initial test results anticipated in approximately two weeks’ time. An additional perforation performed on the Dzheitune (Lam) 13/144B existing well yielded limited incremental production. Drilling of the Dzheitune (Lam) 13/168 well is ongoing.


Lufkin Industries to Acquire Zenith Oilfield Technology

Wednesday, February 29th, 2012

Adds real-time monitoring & data analysis to Lufkin’s automation capabilities.

Lufkin Industries, Inc.  announced that its subsidiary, Lufkin Industries Holdings UK Limited, has agreed to acquire Zenith Oilfield Technology Ltd.  Zenith, based in Aberdeen, Scotland, is an international provider of innovative technology and products for the monitoring and analysis of down-hole data and related completion products for the oilfield artificial lift market.  Zenith was founded in 2004 and serves a diversified customer base, including independent and national oil companies in approximately 30 countries.  The acquisition is expected to close by February 29, 2012.

Zenith is focused on two core segments.  The first segment is down-hole monitoring, data gathering and control systems, providing gauges for all types of artificial lift applications, real-time optimization and control devices specifically for electric submersible pumps (ESPs) and progressing cavity pumps (PCPs), and quartz sensors for permanent reservoir monitoring.  The second segment is artificial lift completion systems for ESP pump systems, providing pump bypass systems, auto-flow valves that increase the life of the pump, and custom completion design, services and training for E&P customers.

“The acquisition of Zenith is a strong complement to our fast-growing automation business and accelerates our strategic goal of offering our customers a fully-integrated solutions package of well automation capabilities to enhance the effectiveness of our artificial lift products,” said John F. “Jay” Glick, President and Chief Executive Officer of Lufkin.

“Zenith’s product portfolio, with its state-of-the-art down-hole sensing, automated system optimization and design of custom completion equipment for artificial lift applications, is a game-changer as it moves our well management and performance capabilities from the surface to down-hole. Zenith’s technology allows oil and gas producers to measure down-hole conditions with real-time, accurate and repeatable data and adjusts surface equipment accordingly.

“Zenith’s capabilities, combined with Lufkin’s existing automation control offerings and the advanced SCADA-related technologies we acquired in January 2012 through Datac Instrumentation Limited and RealFlex Technologies give Lufkin a very powerful package of automation products and services to help our customers reduce operating costs per well and increase production and ultimate reserve recovery.  This latest acquisition gives Lufkin a complete closed system offering of all the surface and subsurface artificial lift equipment and technology (with the exception of the down-hole rod string) needed to efficiently and cost-effectively produce an oil or gas well,” Glick said.

“Roughly 70 percent of Zenith’s revenues are from the Middle East and Far East, and we expect this acquisition to help us gain a foothold in several important international markets we have targeted for entry or expansion for Lufkin’s entire artificial lift portfolio.

“The global artificial lift market is expected to exceed US$9 billion in 2012, according to Spears & Associates, and well automation offers significant untapped market potential.  Our acquisitions of the last several months give Lufkin a major competitive advantage in being able to offer customers the most comprehensive and technologically advanced automation products and services solutions available today, plus a robust pipeline of new products under development that represent the next generation of automation technology for the oilfield,” Glick added.

Since its founding just eight years ago, Zenith has achieved strong operational and financial performance, with compounded revenue growth of 25 percent per year since its inception, and expected revenues of approximately US$41 million and EBITDA of US$10 million for the fiscal year ended May 31, 2012.  With the planned commercial rollout in 2013 of new technologies for real-time optimization and control for ESP and PCP pump systems, Zenith expects its EBITDA to nearly double in 2013.  (EBITDA is defined as earnings before interest, taxes, depreciation and amortization. A reconciliation of forecasted net income to EBITDA has been provided at the end of this news release.)

The purchase price is approximately 80.7 million pounds Sterling ( US$126.6 million) net of acquired cash.  As a result, Lufkin expects this acquisition to be accretive to its earnings in 2013.  The acquisition will be initially funded from the unfunded portion of Lufkin’s existing bank facilities, which is being increased by approximately US$25 million, to be provided by Barclays Capital and J.P. Morgan.

Barclays Capital served as financial advisor to Lufkin and Simmons & Company International served as financial advisor to Zenith.

Lufkin Industries, Inc. sells and services oilfield pumping units, well automation systems, gas lift and plunger lift systems, progressing cavity pumps, well completion products, foundry castings and power transmission products throughout the world.  Lufkin has vertically integrated all vital technologies required to design, manufacture and market its products.


Rosneft Switching to IFRS Financial Reporting

Wednesday, February 29th, 2012

Rosneft is to begin preparing its consolidated financial reporting in accordance with International Financial Reporting Standards (IFRS) starting from the first quarter of 2012. The Company previously compiled its financial reporting in accordance with US GAAP.

Rosneft is switching to IFRS to meet the requirements of the federal law On Consolidated Financial Reporting and as part of a government initiative to bring Russian accounting principles closer to IFRS. This switch is also in line with international best practice.

To ensure the consistency of previous reporting periods and compliance with Russian and international legal requirements, Rosneft plans to publish its IFRS consolidated financial reporting for the twelve months of 2011, 2010 and 2009 on March 1, 2012.


Rosneft and ITERA Group Sign Strategic Cooperation Agreement

Wednesday, February 29th, 2012

Rosneft and ITERA Oil and Gas Company have signed a strategic cooperation agreement for joint exploration and development of gas deposits in Russia.

The agreement signed by Rosneft President Eduard Khudainatov and ITERA Oil and Gas Company Chairman of the Board of Directors Igor Makarov envisages the possibility of establishing a joint venture. The joint venture would comprise ITERA Group’s gas assets – 49 percent of Sibneftegaz, 49 percent of Purgaz, 67% of Uralsevergaz and several other assets – and Rosneft-owned deposits in the Kynsko-Chaselsk group. It is envisaged that other Rosneft gas assets would be transferred to the joint venture in the future. The company will become Rosneft and ITERA Group’s gas extraction and sales operator.

The joint venture’s initial combined recoverable liquid hydrocarbon and natural gas reserves will total approximately 60 million tonnes and approximately 1.2 trillion cubic metres respectively. In the coming years the company could extract and sell over 40 billion cubic metres of its own gas per year.

Rosneft and ITERA have also agreed to pursue joint efforts to expand their gas business through the acquisition of new gas producing assets.

“The joint venture provides a strong foundation for successful implementation of the shareholders’ gas strategy and serves as an effective tool for monetizing gas produced at Rosneft and ITERA’s deposits. Joint projects to be developed under the agreement will be a substantial step forward in implementing Rosneft’s strategic programme to increase the share of gas reserves under development, which will help increase the Company’s capitalization and create additional value for shareholders. We are looking forward to working effectively with the management of the ITERA Group to manage this joint asset in extracting, preparing, transporting and selling gas,” said Rosneft President Eduard Khudainatov.

Commenting on the agreements, ITERA Oil and Gas Company Chairman of the Board of Directors Igor Makarov said: “The establishment of this joint venture with Rosneft is an important step in ITERA Group’s further development. It will allow both of the companies to combine their potentials and use their strategic advantages most effectively. We expect the joint venture to become the flagship on the Russian independent gas producer market.”


Baker Hughes Introduces New Service to Detect and Diagnose Drilling Challenges Before They Occur

Wednesday, February 29th, 2012

A new Baker Hughes service identifies potential drilling issues before they occur by pinpointing similar case histories in real-time using a global library of drilling practices and expert advice to provide operators with suggestions on how to respond or take corrective actions while drilling.

Baker Hughes’ WellLink™ Radar Remote Drilling Advisory Service™ is an integrated solution that uses case-based reasoning and event detection. It leverages Verdande Technology’s DrillEdge™ software to reduce uncertainty, minimize nonproductive time (NPT) and increase safety. The service allows for the remote monitoring of multiple wells simultaneously and enhances drilling efficiency. This can reduce HSE risk by limiting personnel on the rig.

Baker Hughes’ remote service engineers monitor real-time drilling operations around the clock while the DrillEdge software looks for patterns based on similar situations where issues have occurred in previously drilled wells. When a similar situation occurs, the software automatically recalls relevant cases from the Baker Hughes’ knowledgebase of experience and best drilling practices. The engineers investigate, validate and determine the best course of action. They then make recommendations to avoid potential drilling challenges. New cases can be included in the knowledgebase, allowing for the continuous enrichment of the service.

An independent operator successfully deployed the WellLink Radar Remote Drilling Advisory Service in an ultradeepwater well, within a previously undrilled block of the Gulf of Mexico. The offset wells on a nearby block had experienced pack-offs, stuck pipe, lost circulation and influx of water. While drilling, the WellLink Radar Remote Drilling Advisory Service identified multiple events including pack-offs, overpull, maxed-out torque, hard stringers, string stalls and changes in pore-pressure. These events are known symptoms that could lead to drilling problems such as stuck pipe, twist-offs, lost circulation and influx. Based on matches with previous cases, the identification and validation of these potential events enhanced the risk assessment. By preventing these possible drilling problems, the WellLink Radar Remote Drilling Advisory Service potentially saved the operator an estimated $2 million for each incident avoided.


Victoria Oil and Gas: Interim Financial Report to 30 November 2011

Wednesday, February 29th, 2012

Victoria Oil & Gas Plc, the AIM quoted oil and gas exploration and production company with assets in Cameroon and the FSU, is pleased to announce its unaudited interim results for the six months ended 30 November 2011.

Highlights for the period ending 30 November 2011:

• Increase in prospective resources by over 300 million barrels of oil equivalent (“boe”) to 1.4 billion boe at West Med
• Increase in the Company’s working interest to 95 per cent. at Logbaba
• Equity placings of £10.1 million
• Macquarie Capital (Europe) Limited appointed as a joint broker to the Company

Highlights post period end:

• VOG becomes the first onshore gas and condensate producer in Cameroon supplying the industrial market in December 2011
• Second phase of pipeline expansion to central Douala under construction, and expected to be completed in early Q2 2012
• Over 1 million standard cubic feet a day (“mmscf/d”) of production anticipated from May 2012, expected to rise to 8 mmscf/d by December 2012 and 40 mmscf/d by late 2014
• Completion of first 34 km of gas distribution network anticipated by Q3 2012
• Positive cashflow from operations expected by June 2012
• Tender process for drilling design contracts underway at West Med
• US$8 million debt facility in place

West Medvezhye, Russia

Our 100 per cent. owned West Medvezhye (“West Med”) block is located near the Yamal Peninsula, north west Siberia, in one of the most prolific oil and gas producing areas in the world, adjacent to the giant Medvezhye and Urengoy fields. We hold a 20-year exploitation licence for West Medvezhye covering 1,224 km2, and a discovery well, Well 103, has “C1 plus C2” reserves of 14.4 million boe under the Russian resource classification system.

In September 2011, following a seismic reprocessing and geological modelling study, the Company reported that independent reserve auditors, Mineral LLC, (“Mineral”) had confirmed a 300 million boe increase in gross prospective resources to 1.4 billion boe, comprising 670 million barrels of oil and 730 million boe of gas & condensate.

We are pursuing an integrated exploration and appraisal work programme incorporating drilling, seismic, and advanced direct hydrocarbon technologies. This programme was presented to the Yamal District regional petroleum authorities in Salekhard on the 15 February 2012. The programme was approved by the authorities and a two well drilling campaign is provisionally planned to start by the end of 2012. These wells will target the Jurassic discovery horizons successfully encountered by Well 103 and also new hydrocarbon potential horizons in the Achimov layers identified as part of the study carried out by Mineral.

Our Nadym-based team is currently tendering the drilling design contracts for the planned wells. Three companies with a successful track record of working in the region have been shortlisted. Our technical team are in advanced discussions with these companies to determine the scope of work to include detailed well design as well as studies of the terrain, soil mechanics, access and ecological issues.

Conceptual screening and development studies are in progress to monetise West Med’s large prospective resources and to exploit the Well 103 discovery to generate cash flow. In February 2012, VOG contracted an experienced local company, LLC Nefteproject, based in Tyumen, to develop a project plan for an early production scheme for the West Med discovery area. Preliminary work on the Well 103 discovery indicates first oil sales could occur in 2015.

The Company is planning to farm-out a portion of its interest in West Medvezhye to help fund the development and drilling programmes.


The Company has invested approximately US$85 million of shareholders funds in the Logbaba project and it has secured this funding in very challenging capital markets. During the financial period, the Company raised £10.1m via equity placings. The Board and I are very conscious that the share issues, which have been essential to the progression of our projects, have also been dilutive.

The Directors believe that the Logbaba project has now been substantially de-risked. Consequently, routes to alternative sources of capital, other than conventional equity, have opened up for the Company.

The Company recently concluded a 12 month Loan Note facility for US$8 million for its capital programme at Logbaba. An initial tranche of US$4 million has been drawn and the remaining US$4 million may be drawn subject to mutual consent. The Loan Note bears a 9 per cent. coupon and is expected to be repaid by cash flow from operations at Logbaba. We are also currently in discussions with several parties in relation to a larger debt facility and reserve based lending facility, both with attractive terms. The appointment of Macquarie Capital (Europe) Limited as a joint broker with Fox Davies Capital has also strengthened the Company’s advisory team.

I believe that 2012 will be a year of major developments for the Company as we make the transition from explorer to producer and generate positive cash flows. To equip us for the future, we are strengthening our management with experienced oil and gas professionals and senior executives.


Slavneft Announces 2011 International Reserves Audit – Reserve Replacement at 105%

Wednesday, February 29th, 2012

As of December 31, 2011, the audited proved recoverable oil reserves of OAO NGK Slavneft estimated under SEC LOF (U.S. Securities and Exchange Commission), excluding the licenses validity, made 1,642 mln bbl. The Company’s proved reserves increased by 6.2 mln bbl, or 0.4% vs. 2010.

The Holding’s reserves replenishment rate achieved 104.7% under SEC; this rate is calculated as the ratio of the proved recoverable reserves increment (138.6 mln bbl) to the oil produced in 2011 (132.4 mln bbl).

In 2011, the Company discovered 17 new hydrocarbon deposits at 4 license areas located in the Khanty-Mansi Autonomous Area-Yugra and Krasnoyarsk region.

The Slavneft’s cumulative proved associated gas reserves under SEC LOF decreased by 10.6 % (29.2 bln cubic feet) vs. the previous year and made 245.6 bln cubic feet.

As of December 31, 2011, the total proved oil reserves of OAO NGK Slavneft under SEC LE (including the licenses validity) made 1,596.09 mln bbl that is 10 mln bbl, or 0.6% above the 2010 level. The proved gas reserves under SEC LE decreased by 10.6% (28.3 bln cubic feet) to 238.8 bln cubic feet over the reporting period.

As of December 31, 2011, the proved boe reserves of OAO NGK Slavneft under PRMS achieved 7,564.4 mln bbl and increased by 179.9 mln bbl, or 2.4% vs. 2010. Within the period specified, the gas reserves under PRMS decreased by 76.9 bln cubic feet, or 12% in 2010 and made 563.5 bln cubic feet vs. 640.4 bln cubic feet in 2010.

According to the independent audit appraisal, the commercial associated gas reserves decline is caused by decreased gas production at the mature fields and increased associated gas volumes used by the Company for own needs.

In 2011, DeGolyer and MacNaughton conducted the independent audit of the Company’s hydrocarbon reserves at 34 fields, 32 of which are located in KhMAO-Yugra and 2 – in the Krasnoyarsk region.


TNK-BP Announces 2011 International Reserves Audit – Reserve Replacement at 145%

Wednesday, February 29th, 2012

TNK-BP published the results of an international audit of its reserves at the end of 2011.

As of December 31, 2011, the total proved SEC life-of-field (LOF) reserves of TNK-BP consolidated subsidiaries, estimated according to the criteria of the US Securities and Exchange Commission (SEC), amount to 9.115 billion barrels of oil equivalent.

After addition of 0.97 billion barrels of proved reserves, the total proved SEC life-of-field (LOF) reserves replacement ratio amounted to 145% in 2011. The average SEC LOF reserves replacement ratio of TNK-BP in the past eight years amounted to 140%.

As of December 31, 2011, the total proved reserves of TNK-BP consolidated subsidiaries estimated according to the PRMS (formerly SPE) criteria amounted to 13.77 billion barrels of oil equivalent. Thus, the proved PRMS reserves replacement ratio in 2011 was 203%.

Active development of the Rospan fields, acquisition of new licenses, engineering surveys and intensive exploration drilling in the new and old fields of the company, primarily in the Verkhnechonskoe field in East Siberia, and more efficient development of several fields in the Orenburg Region made the largest contribution into the addition of reserves. The favorable market conditions were also conducive to the growth of reserves replacement ratio in 2011.

In 2011, the company sealed a deal for acquiring assets in Vietnam, as a result of which proved reserves amounting to 30.6 million barrels of oil equivalent, according to the SEC criteria, were added to the company’s balance after auditing the fields in Vietnam.

Apart from that, the company’s reserves increased owing to efficient development and implementation of the program for construction of captive power plants, which made it possible to include the gas supplied for captive power generation in the reserves.

Through exploration and appraisal works, TNK-BP added oil and gas resources of 422 million barrels of oil equivalent, which may be considered as successful replenishment of the resource base in 2011.

“Achievement of a SEC LOF reserves replacement ratio of 145% is an excellent result, which was made possible by extensive application of advanced technologies and latest innovations by the company,” said Francis Sommer, Senior Vice President, Operations and Technology, TNK-BP. “More efficient development drilling in new fields and extensive development of promising Rospan fields together with maintenance of the production level in mature fields allowed the company to successfully increase its resource base.”

For further information please refer to:

Public Affairs Division: Tel. (495) 363-27-57


Tel: +350 2162 4000    Fax:+350 2162 4001
ROGTEC Magazine © 2009/2014 - All rights Reserved | Legal Disclaimer
Website design and development by Saul Haslam and Tictac Studio - SEO by Solar Internet Specialists in SEO Spain
[Valid RSS] Valid XHTML 1.0 Transitional ROGTEC Magazine in Twitter ROGTEC Magazine in LinkedIn ROGTEC Magazine Feed
ROGTEC Magazine in englishROGTEC Magazine in russian