Tuesday, July 8th, 2014
The amount of 2,155,679 tons of crude oil or 100.4 percent versus June 2013 was produced at JSC TATNEFT, while the production since the beginning of the year amounted to 12, 985,973 tons which was 53,850 tons more than in 2013 (100.4% to the planned amount).
The amount of 12,765,565 tons of crude oil was delivered with the above-the-plan delivery amounting to 33,755 tons.
The new drilling penetration for 6 months of 2014 amounted to 230.3 thousand meters (285.8 thousand meters in 2013) with the drilling performed for JSC TATNEFT in the amount of 192.0 thousand meters (225.0 thousand meters in 2013), including drilling to bitumen deposits in the amount of 8.8 thousand meters, production drilling accounting for 176.1 thousand meters and exploratory drilling accounting for 7.1 thousand meters.
3.2 thousand meters (20.1 thousand meters in 2013) were penetrated for OOO “Tatneft-Samara”, including production drilling in the amount of 1.0 thousand meters and exploratory drilling amounting to 2.2 thousand meters.
145 wells (182 wells in 2013) were constructed and delivered to customers with 117 wells delivered to JSC TATNEFT (134 wells in 2013), including drilling of 12 wells to bitumen deposits, 101 wells of production drilling and 4 wells of exploratory drilling.
1 production well was constructed and delivered to OOO “Tatneft-Samara” (16 wells in 2013).
Active Well Stock Drilling
The penetration of sidetracking and horizontal wellbores for JSC TATNEFT amounted to 27.6 thousand meters (28.3 thousand meters in 2013) during six months of 2014, including 10.1 thousand meters (13.6 thousand meters in 2013) for JSC TATNEFT.
50 wells were delivered to customers (52 wells in 2013) with 31 wells (35 wells in 2013) delivered to JSC TATNEFT.
The average number of drilling crews performing conventional well drilling operations since the beginning of 2014 amounted to 34, while 13 drilling crews were engaged in drilling lateral and lateral horizontal wellbores. One drilling crew performed drilling to the bituminous deposits of Ashalchinskoye oil field for NGDU “Nurlatneft”.
The penetration per crew engaged in new drilling amounted to 6,460 meters during six months of 2014. 30.1 thousand meters were penetrated outside the Republic of Tatarstan, including 17.5 thousand meters for penetration of sidetracks and horizontal holes.
Repair of Wells
During six months of 2014 the crews of remedial servicing, workover and oil recovery enhancement performed remedial servicing of 3,885 wells (740 wells in June) and workover in 1,210 wells (262 wells in June), including production string sealing performed in 131 wells, shutting-off individual layers and recompletion in other intervals in 56 wells, transfer of wells into different categories and wells completion for injection in 102 wells, liquidation of downhole complications and cleaning of production casing and bottomhole in 96 wells and installation of isolating packers and dual completion systems in 50 wells at the sites of JSC TATNEFT.
68 wells were repaired outside the Republic of Tatarstan with 61 wells for OOO “Tatneft-Samara” and 7 wells for OOO “Tatneft-Severny”.
Formation hydrofracking operations were performed in 306 wells (50 wells in June).
Five 5 small diameter horizontal wells were drilled and completed for NGDU “Almetyevneft”.
Oil recovery enhancement works were performed in 1,296 wells (288 wells in June), including chemical methods applied in 646 wells (141 wells in June).
Bottomhole area treatment operations with application of JSC TATNEFT’s technologies were performed in 1,559 wells.
Tuesday, July 8th, 2014
Rosneft has started field works at five license blocks of the Barents and Pechora Seas: West Prinovozemelsky, located in the North-Eastern part of the Barents sea near the Novaya Zemlya archipelago, Perseevsky, located in the North-Western part of the Barents sea, and at the South Russky, South Prinovozemelsky and West Matveevsky license blocks, located in the Pechora Sea.
The following explorations will be conducted at these blocks:
West Prinovozemelsky – 3D seismic exploration with a volume of 2800 sq. km
Perseevsky – 2D seismic exploration with a volume of 6500 sq. km
South Prinovozemelsky – 2D seismic exploration with a volume of 2000 sq. km
West Matveevsky – 2D seismic exploration with a volume of 2000 sq. km
Seismic work will be performed by a specialized research vessel simultaneously with the shipboard gravi magnetometric survey. All work will be performed in three seismic parties.
The seismic survey is a reliable method of exploration of the geological structure of the subsurface and because of high resolution allows establishing a geological model of the studied areas with a high accuracy, increasing the probability of correct assessment of their oil and gas potential.
In addition, complex engineering surveys with the purpose of obtaining information about engineering-geological and engineering-ecological conditions of the sites for two projectable outposts is planned. Drilling is planned for 2016 and 2017.
Rosneft carries out the Geological Exploration Program in the Barents and Pechora seas in strict accordance with the requirements of environmental legislation of the Russian Federation and license agreements. At seismic surveys’ and integrated engineering surveys’ run-time the Program of Ecological Monitoring and Production Control will be implemented. Previously public discussions were conducted; all necessary permissions and approvals of the state bodies were obtained, compensation measures of the potential damage were developed.
Organization of geological surveys on the Barents and Pechora seas shelf is carried out by specialized subsidiary of Rosneft LLC “RN-Shelf-Arctic”.
Tuesday, July 8th, 2014
Urals Energy PCL, the independent exploration and production company with operations in Russia, announces that it has today received notice from Adler Impex S.A. (“Adler”) that following certain share acquisitions on 3 July 2014 it now holds 112,561,386 shares in the Company representing 44.59% of the current issued share capital.
Adler has informed the Company that it remains supportive of Urals Energy’s management and strategy.
Tuesday, July 8th, 2014
Tethys Petroleum Limited is pleased to announce the test results from AKK17, AKK18, AKK19 and AKK20; the first four shallow gas exploration wells of its 2014 programme.
The AKK17, AKK18, AKK19 and AKK20 wells tested at an aggregate rate of approximately 650 Mcm/d (23MMcf/d) from the Tasaran horizon.
It is planned that these wells will be incorporated under the Akkulka Production Contract by Q1 2015 whereupon they will be tied-in to the existing gas production infrastructure and placed on permanent production. Additionally, the four previously drilled and tested wells, AKK05, AKK14, AKK15 and AKK16 will also be brought on stream in Q1 2015 to target an initial total production rate of 800 – 1,000 Mcm/d (28 MMcf/d – 35 MMcf/d).
Additional wells are planned to be drilled in the proximity of the new discoveries as well as the existing wells, such as AKK15 and AKK16, next year and subsequent pipelines will be laid and tied into the optimised infrastructure in order to maintain production levels.
In support of this shallow gas programme, work has already commenced on the gas dehydration project and on the pipelines required to tie-in these additional wells to the existing gas production infrastructure. Both projects are on schedule for completion by year-end.
Graham Wall, Chief Operating Officer of Tethys commented, “We are very pleased with the continued success of the Kazakh shallow gas programme. These latest results (some of which were tubing constrained) keep us on track to achieve a near three fold increase in gas production by the beginning of 2015.”
Tethys is focused on oil and gas exploration and production activities in Central Asia and theCaspian Region. This highly prolific oil and gas area is rapidly developing and Tethys believes that significant potential exists in both exploration and in discovered deposits.
Tuesday, July 8th, 2014
PetroNeft an oil & gas exploration and production company operating in the Tomsk Oblast, Russian Federation, is pleased to announce the completion of the Licence 61 Farmout to Oil India Limited (“OIL”)
· All debt repaid
· Drilling to re-commence at Licence 61 this month as part of a fully funded exploration and development programme
· Introduces a strong industry partner seeking to build an oil and gas business and strategic position in Russia
· New chapter begins for a significantly strengthened PetroNeft
Following the granting of Russian Regulatory Approval on 30 June 2014 the transaction with Oil India Limited was completed on 3 July 2014. All debt due to Macquarie and Arawak has been repaid from the initial proceeds of US$35 million and the Company is now debt-free.
Under the terms of the Licence 61 Farmout, OIL has acquired a 50% interest in Licence 61 in return for a total Investment of up to US$ 85 million consisting of:
· US$35 million upfront cash payment,
· this enabled PetroNeft to repay in full its existing debt (the Macquarie Debt Facility and the Arawak Loan, totalling US$24.9 million) and have cash for working capital purposes;
· US$45 million of committed exploration and development expenditure on Licence 61 ,
· US$5 million performance bonus, contingent upon average production from the Sibkrayevskoye Field reaching 7,500 bopd within the next 5 years.
PetroNeft will remain as Operator of Licence 61, but OIL will have the right to second certain technical experts into PetroNeft’s Tomsk team.
The Licence 61 Farmout:
· Significantly strengthens PetroNeft financially and strategically,
· Fully addresses PetroNeft’s capital structure and long term investment requirements with all existing debt repaid, cash for working capital and investment and significant funds available to invest directly in Licence 61,
· Introduces a strong industry partner seeking to build an oil and gas business and strategic position in Russia,
· Positions PetroNeft to fully exploit the potential of its assets and create value for all Shareholders.
Evercore acted as Financial Adviser to PetroNeft for the Licence 61 Farmout and White & Case were the principal Legal Advisers.
Post Completion Activities
We expect to commence drilling at Tungolskoye later this month. The T-5 well will be the first horizontal well drilled by the Company and is expected to take approximately 60 days to drill. Assuming a successful result at T-5 we plan to bring the Tungolskoye into year-round production in 2015.
Following the T-5 well, up to five additional production wells will be drilled at Arbuzovskoye Pad 1 where drilling was suspended in February 2013. There are also plans in place to acquire 1,000 km of 2D seismic across the large Sibkrayevskoye oil field and Emtorskaya prospect commencing later in 2014. Current production has slowly declined to 2,100 bopd from existing wells.
Dennis Francis, Chief Executive Officer of PetroNeft Resources plc, commented:
“I’m delighted that we have now completed the Licence 61 Farmout fully clearing all of our debt and leaving us with surplus cash and access to significant further funds to invest in growing the Company. We look forward to working closely with our new partners Oil India and to realising the full potential of this asset and to developing further opportunities together.
We have a planned multi-well drilling programme and will re-commence drilling at Licence 61 shortly. I look forward to updating shareholders with the results of this exciting programme over the coming months.”
Monday, July 7th, 2014
For the year to date, crude output in the Republic of Sakha (Yakutia) equaled 3,714.3 thousand tonnes, 5% up versus six months of the last year.
In January-June 2014, overall gas production amounted to 4,659.5 million cubic meters.
For the year to date, in-house drilling reached 2,076.5 thousand meters of rock including exploratory drilling amounting to 100.2 thousand meters.
Monday, July 7th, 2014
Rosneft and ExxonMobil, within the framework of the Sakhalin-1 Consortium, have finished transport operation on transportation and installation of a unique sea drilling platform Berkut, which has the biggest upper part in the world at Arkutun-Dagi on North East shelf of Sakhalin Island. The adjustment works will be finished in a matter of days. The upper part of the platform has travelled in hauling mode 2600 km approximately from Corean shipyard with no incidents to report.
The process of adjusting platform equipment was inspected on Monday by Rosneft President, Chairman of the Management Board Igor Sechin and Sakhalin region governor Alexander Khoroshavin.
The weight of platform (upper and lower parts) exceeds 200 thousand tons, and there are 45 wells at the platform. The Arkutun-Dagi platform will be situated at 25-km distance from the shore, at the site, where the sea depth is up to 35 meters. The drilling will be performed by means of a marine drilling rig, optimized for year-round drilling of wells in a radius of up to 7 km from the platform.
The start of exploitation at Arkutun-Dagi field is expected in December, 2014.
The Berkut platform was designed especially for working in harsh subarctic conditions and can oppose waves up to 18 meters high, the ice floe pressure up to 2 meters thick and temperature up to -44° C.
The exploitation of Arkutun-Dagi field will let to increase the total annual extraction by 4.5 mln tons.
Sakhalin-1 is the first shelf project realized in Russian Federation on PSA terms (forged in 1996).
The project includes the exploitation of three deposits – Chaivo, Odopta and Arkutun-Dagi, situated at North East shelf of Sakhalin Island in water area of Okhotsk Sea.
The exploitation of deposits is performed in several steps: the first is the exploitation of Chaivo oil deposit (started in 2005) and Odoptu field. The third step presupposes the exploitation (from 2014) of Arkutun-Dagi oil deposit. The life cycle of the project will last up to 2040-2050.
The shares of project participants:
Rosneft – 20%
ExxonMobil – 30%
Sodeco – 30%
ONGC Videsh Ltd. – 20%
Monday, July 7th, 2014
Companies signed contracts for long-term operation of three vessels for the Sakhalin-2 project.
Sakhalin Energy and Sovcomflot have signed contracts for the construction and long-term operation of three multifunctional icebreaking standby vessels to serve the Sakhalin-2 offshore energy platforms. Operations under the contract will continue for 20 years. The vessels will be used as year round personnel carrier and also as supply vessels for offshore platforms in the Sea of Okhotsk. In case of emergency, the vessels will be deployed for personnel evacuation and oil spill response.
The contracts are a continuation of the memorandum of understanding and the contract for supply of the multi-task ice-class supply vessel for Sakhalin-2 offshore platforms signed between Sovcomflot and Sakhalin Energy on the 18th of April 2014, on the date of the Sakhalin Energy’s birthday.
Monday, July 7th, 2014
On the 14-16 October, the 5th biennial edition of SPE Russian Oil & Gas, Exploration and Production Technical Conference and Exhibition will be taking place at the All-Russian Exhibition Center in Moscow. The organisers are expecting a total attendance of over 3,500 technical professionals and academics, over 100 exhibiting companies will be present and more than 160 technical papers will be presented; the largest event to date.
The 2014 conference programme has been developed by a committee of industry thought-leaders, Co-chaired by Dean Kaminski, Weatherford and Alexey Vaskevich, Gazprom Neft, and takes place alongside the exhibition with companiesincluding Gazprom Neft, Tatneft, PSK Burtechnologii, Baker Hughes, Weatherford, Akzo Nobel, KCA Deutag and Schlumberger who will be showcasing their state of the art technology. The event is also proudly supported by six official sponsors including Platinum Sponsors; Rosneft and Schlumberger.
The 2014 Conference Committee selected the theme of sustaining production levels as one of the most important challenges Russia and other producing countries now face. This was reflected in the call for papers, which received a record number of technical abstract submissions. The 160+ that were selected will be addressing the full range of upstream technical disciplines, with a particular focus for 2014 on greenfield development, new technologies for brownfields and unconventional & hard to recover reserves.
The Programme Committee Co-Chairs stated “A key challenge for energy companies is how to develop business strategies and practical implementation plans to sustain and increase production, while demonstrating the highest standards of environmental stewardship and socially responsible performance.”
“SPE Russian Oil & Gas is the place where industry professionals and oil and gas producing companies can meet representatives of leading universities and institutes, and where service industry representatives have a chance to network with leading research institutes. This event is the place to share experiences and collect best practices in applying technology today and addressing the challenges of tomorrow.”
More than 175 speakers from major international and Russianproducing and service companies and leading Russian universities will feature in the 2014 conference. The three plenary sessions and the 18 technical sessions running throughout the three days of the event, hold over 50 hours of content and were selected by the Programme Committee to specifically address the most relevant industry issues in the E&P industry today.
- Full-field Development on Greenfields in East Siberia, Yamal and Others.
Plenary Session includes presentations from LUKOIL, TNNC (Rosneft), TyumenNIIgiprogas (Gazprom) and Gazprom Neft Shelf
- New Approaches and Technologies for Sustaining Production on Brownfields
Plenary Session includes presentations from LUKOIL-Engineering PermNIPIneft, Salym Petroleum Developmentand Baker Hughes
- Unconventional and Hard to Recover Reserves.
Plenary Session includes presentations from TatNIPIneft, Russian State Reserves Committee, Halliburton andSchlumberger.
The full conference brochure is available to download atwww.russianoilgas.ru/eventpreview
The Programme Committee Member Mikhail Gelfgat, R&D Engineering Director at Weatherford highlights some of the latest technical areas that will be addressed:
“All aspects of multi-zone hydraulic fracturing related to increasing the efficiency and reliability of well completions will be discussed both at the technical sessions and topical luncheons.
Drilling with borehole reservoir pressure control (managed pressure drilling) will be reflected in the programme being one of the key methods to increasing safety and efficiency of well construction in abnormal pressures and unstable reservoirs. The current status and features of horizontal drilling and multi-lateral wells is also an important topic for the development of both brownfields and drilling in low permeability reservoirs.”
The event also includes further features including round-tables on HSE and Oil Production Allocation for Recovery Methods, two topical luncheons, the SPE Regional Awards Ceremony, Young Professionals Special Technical Sessions and Energy4Me, a worldwide programme working to enhance energy education in schools, increase public awareness and attract young people into the industry. The free-to-attend Exhibition will feature the brand new Shale Oil & Gas Zone, the Technology Incubator for new to market, small and innovative companies who will be showcasing their latest products and solutions, as well as the Business Development Theatre, Knowledge & Science Zone and more than 60 ePoster Technical Presentations.
For the full conference programme, more information on each features and the latest exhibitor list, please visitwww.russianoilandgas.com
For more information, interview requests, or to request a press pass for SPE Russian Oil & Gas Exploration and Production Technical Conference and Exhibition, please contact:
Maria Harper, Marketing Manager, Reed Exhibitions
Tel: +44 208 439 8878
Claudia Rodionova, General Manager, Russia
Tel: +7 495 268 04 54
Friday, July 4th, 2014
Russian oil producer Gazprom has replaced Alexander Medvedev as head of its exporting arm, Gazprom Export, with one of his deputies, Elena Burmistrova, as part of steps to increase its share in new and established markets.
Medvedev, 58, will continue in his role as a deputy CEO at Gazprom, the world’s biggest conventional gas producer, overseeing foreign economic activities, social and sport programmes, the company said.
Sources said there was little reason to believe Medvedev, who had been head of Gazprom’s export unit for 12 years, was being ousted. “Gazprom’s ambitious plans for external markets call for new structural and functional decisions,” Gazprom CEO Alexei Miller said in a statement.
Underlining the importance of Gazprom in Russian politics as well as the economy, President Vladimir Putin met Burmistrova and Miller on Wednesday. Kremlin spokesman Dmitry Peskov was quoted by RIA news agency as saying the three discussed “eastern projects”.
A source familiar with the situation said Medvedev’s departure was “technical” as he had too many responsibilities as Gazprom Export head but that he was still overseeing export policy.
Another source confirmed that Medvedev, known as a conservative manager, remained the “chief export man”, with Burmistrova a close ally.
“They prepared the China (gas) contract together, she added a lot to preparations. Nobody is removing him, he is a board member responsible for contracts, talks, prices, etc,” the source said.
In May, Gazprom signed a long awaited deal to supply gas to China over 30 years and worth $400 billion, which will make Beijing one of the largest buyers of Russian gas comparable with Germany.
Burmistrova started her career at commodities trader Glencore in 1992, joining Gazprom in 2003. She was appointed as Medvedev’s deputy in 2011 to oversee liquefied natural gas (LNG) and new gas markets, among other responsibilities.
(Reporting by Katya Golubkova and Denis Pinchuk, editing by Elizabeth Piper and Timothy Heritage).