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Labels: Gazprom, oil gas Russia, Rosneft, tender, tender service, TNK BP

posted by The Rogtec Team @ 16:54  0 Comments

V. I. Nikishov (OAO "NK “Rosneft"), A. I. Markin, R. R. Gabdulov (OOO "RN-Yuganskneftegaz"), P. I. Slivka (OOO "RN-YufaNIPIneft")

Introduction
The field development using combined methods of exploitation of layers and creating a reliable control and regulation system of processes of production of reserves with respect to every layer is one of the main postulates of mining laws and regulations during the projection of development. Therefore at present time high emphasis is placed on technologies including the use of wells with multi-packer section arrangements designed for differential injection in geological heterogeneous production facilities [1].

Currently existing constructions of arrangements for dual injection operations (ORZ) in wells uncovering three and more layers prevent from determination of liquid flow rate of every layer without participation of the workover crew. The injection into layers is regulated after study of geophysical data and data according to well performance for a specified period of time.

The basic idea of the submitted article is the systematisation of regulation and control of the development of multilayer fields using the ORZ system. The ultimate aim is the transition to an intelligent well which enables to regulate the working conditions of layers in real-time environment and to ensure differentiated action in separate interval or area of oil reservoir.

Basic line of improvement of multi-packer arrangements ORZ
The targeted aim can be achieved at the expense of the creation of tandem of the existing technology ORZ, use of control sensors of bottom-hole parameters (pressure p and temperature T) as well as software engineering for the calculation of liquid flow rate according to the available data of pressure decrease which is the "nervous system" of the intelligent structure [2].

The following refers to the improvement elements of the construction of arrangement ORZ (fig. 1):

1. Construction modification of the bottom-hole flow bean which enables to reduce the hydraulic resistance for the purpose of increase of its throughput capacity.

2. Determination of liquid flow rate based on the calculation principle of liquid according to pressure decrease and as a consequence the creation of a software product for the calculation of liquid flow rate for injection into the layer.

3. Use of geophysical sensor systems (p, T) within the tube and the annular space of the arrangement ORZ with information transfer to the surface via cable lines.

We examine one of the main improvement elements of multi-packer system of the ORZ system. As shown in practice the liquid flow rate through a flow bean of the existing construction is limited by the diameter of the axial channel. It is possible to achieve a large flow rate through the flow bean for the guarantee of the planned regime of injection capacity by enlarging the diameter (construction modifications) of the axial channel or reducing the pressure decrease at the existing construction.

Figure 1 shows comparative schemes of the arrangement ORZ in use (a) and the improved arrangement ORZ (b).



Fig. 1. Schemes of the arrangement ORZ in use (a) and the improved arrangement ORZ (b)

For analyse it is recommended to compare two versions of flow bean construction with different types of orifice instruments (SU) (table 1).

The orifice instruments in the form of Venturi tubes make it possible to increase the throughput capacity of the flow bean at the expense of the reduction of decrease in pressure by the overcoming resistance to the fluid stream. It can be accepted that the fractional decrease in pressure is 5 - 20 % for Venturi tubes generally.

In case of flow motion the friction head loss lengthwise and the overcoming local resistance is often observed at the same time. The total head loss is determined as arithmetic loss sum of these types.

The hydraulic calculation is presented for flow beans of the existing construction (in the form of a restricted channel) and in the form of Venturi tubes. Due to small sizes and high seed of the liquid stream the following assumptions can be added to the calculations:

- the existing flow bean represents an orifice plate of a wide, even lengthwise restricted part of the channel;

- the friction pressure loss is equal to zero.





The theory about the liquid flow through nozzles supposes that the average speed of the stream increases together with its restriction and the static pressure becomes less than the static pressure before the orifice plates/Venturi tubes. The pressure difference (differential pressure) becomes higher if the flow environment increases. So it can serve as flow measure [3-5]. Table 2 shows the methodology algorithm of the flow bean at differential pressure.

The use of the flow bean in arrangements ORZ is limited by the size of the flow area of 9.5 mm. The use of orifice instruments in the form of Venturi tubes under equal conditions makes it possible to increase the liquid flow rate through the flow bean up to 39%. Table 3 shows a comparative calculation of two versions of flow bean.



Employing the trail-and-error method of number values, i.e. changing the diameter of the existing flow bean it is easy to calculate the equivalent diameter (11.56 mm) of the restrictive channel which would guarantee a liquid flow rate of 659.28 m3/day. The result of the calculations is the dependence of the liquid flow rate on the differential pressure for two versions of flow bean.

Figure 2 shows that the flow bean in the form of Venturi tubes has a higher throughput capacity in comparison to the flow beans in use. Charts which are shown in figure 3 are used for the sake of simplicity of determination of the liquid flow rate for different flow bean diameters and the value of differential pressure. The throughput capacity of the flow bean does practically not depend on the production material of the orifice instruments and measuring pipe and depends largely just on the surface finish characteristics, the wear-resistant and corrosion behaviour of the materials. An alternative solution for the increase of throughput capacity for the Priobsk field is often the use of an extension pipe without a



Fig. 2. Dependence of the liquid flow rate on the differential pressure for Venturi tubes (1) and orifice plates (2)



Fig. 3. Charts for determination of the liquid flow rate through the flow bean in the form of Venturi tubes (measuring pipe diameter - 20 mm; material of SU and the measuring pipe - 40X)

borehole chamber and cap. However, the given solution is in conflict with the company specification concerning the engineering requirements on the organisation ORZ of water at the Priobsk field in the injection wells which uncovered several sites (No. P1-01 S-034 JuL-99) according to which the following tests must be carried out after the first running-in and installation of equipment in the well for the separate water injection:

1. pressure test of the oilwell tubing columns;
2. reliability control of the performance of packers in terms of lack of fluid crossflow;
3. regulation operations with a view to ensuring the planned injection conditions including the performance of geophysical studies.

Another important constituent of pressure loss in the construction of flow bean is the presence of local resistance occurring in zones of tube section changes or travelling direction of the liquid stream. This loss depends on the average speed and the cross-sectional dimensions of fluid jet, forms and sizes of the barrier, its placing in relation to the fluid jet.

Taking into account the consistency of mass of the liquid flow rate and neglecting the friction hydraulic resistance the Weisbach formula can be used for the determination of local loss [6-7]

∆p = ξ ,

where ξ – local pressure loss; p - fluid density; v - average speed (as a rule after the pass-through through the local resistance).

The determined theoretical coefficient values of local resistance for a number of cases (sudden contraction, orifice plate, etc.) comply with the test data completely.

For the purpose of adaptation of the calculation procedure of the flow bean autonomous pressure sensors in the arrangements ORZ which make it possible to register pressure in annular space (between the production string and the arrangement ORZ) were installed in the well 6295 of the Priobsk field on 22 June 2008. The pressure in the tubes (before the entry into the flow bean) and the actual flow were determined according to the field geophysical survey. For the complete adaptation of the calculation methodology it is necessary to have statistics of the survey under different conditions.

The largest resistance becomes evident in the case of peg-leg of liquid stream. When using the flow bean where the liquid changes the direction by 90º abruptly after having left the orifice instruments the pressure decrease is 6.29 MPa, then the pressure decreases 3 times like before the exit at an angle of 45º. As a result small changes to the construction of the flow bean were recommended; in particular the directions of the liquid entry and exit out of the flow bean have changed (fig. 4).

Body 1 of the regulating device is connected to the gripping head 2 and the tail 3. The tail 3 contains a gas lens 4. The gripping head 2 and tail 3 have sealing elements 5. The regulating device contains fluid passages, in addition, axial channels 6-8 are connected to side channels 9-11: in the tail are the axial channel 6 and the side channel 9, in the body are the channels 7 and 10 and in the head the channels 8 and 11 correspondingly.

Under the sealing elements and the gas lens is an axial channel which has restrictions 12, 13 by objective reasons. This is related to the fact that it is necessary to have space groove with some deepness for fastening of sealing rings 5 and a cementing collar of the gas lens 4.

For the reduction of resistance from restriction and the increase of its throughput capacity at the entry of restriction 14, 16 and exit of the restriction 15, 17 bevelled flowing wills 14-17 are installed which make it possible to minimise the internal hydraulic resistance what increases the throughput capacity, reduces the flow bean effect as well as the running time, reduces significant corrosion in the restriction zone.

The use of the recommended flow bean construction under equal conditions makes it possible



Fig. 4. Construction of a double-sided flow bean taking into consideration the integrated rework

to increase the liquid flow rate through the flow bean to 30-35% at the expense of loss reduction by overcoming the hydraulic resistance.

Another improvement direction of the arrangement ORZ is data acquisition from geophysical sensors on a real-time basis (see fig. 1). This project was initiated within the scope of the established working group Systems of New Technologies in the OAO HK "Rosneft". The introduced technologies ORZ in two layers and more than one well and with one downhole equipment has no analogue in the domestic and foreign oilfield practice. This work is carried out in wells with an internal diameter of the production string of 146 mm. The whole downhole equipment is drained of in one run.

At the moment at OOO "RN-Yuganskneftegaz" operations of the first stage of ORZ are carried out on the Priobsk field in the wells 8709/2016 and 7730/201a. The main tasks which will be decided during the performance of work are: lowering of the multi-packer section arrangement with sensors (p, T) in one run; acquisition of geophysical data (p, T) on a real-time basis; inspection of reliability of the entire system; detection and prevention of risks; transition to the final stage of "intellectualisation" of ORZ (fig. 5).

The stage-by stage approach of the operations is defined by the complexity of the operations to be carried out and the degree of intellectualisation of the well.

Conclusion
1. The current development state of the majority of multilayer fields is characterised by the ever-increasing demand for the use of technologies which make it to maintain separate account of products to be lifted and to be injected.

2. The improvement of technology ORZ is based on the creation of tandem of the existing technologies of geophysical control of layer parameters and the mathematical devices of calculation of hydrodynamic processes taking place at the boundary of well - layer.

3. The changes to the existing arrangement must relate to all elements of the system ORZ. At OOO "RN-Yuganskneftegaz" in association with OOO NPO "Novye Heftyanye Tekhnologii" a flow bean was developed which makes it possible to increase the flow rate to 30-35% in comparison to the flow beans used today.

4. Calculation methodology of the liquid flow rate according to the differential pressure is being developed jointly. According to the results of the collection of statistical material it is planned to develop a software product which makes it possible to carry out operational supervision of the flow bean operation without the involvement of geophysics.

5. At the moment operations are being carried out in the wells of Priobsk field. The performance of operations concerning the technological advancement of ORZ is divided in stages which are defined by the complexity of operations to be carried out and the degree of intellectualisation of the well.

6. A judgement must be passed on the economic efficiency of the implementation of the improved arrangement ORZ on the basis of the whole "life" cycle of the well.



Fig. 5. Transmitted-data circuit

However, the main effect of the project is linked to the raise of the coefficient of oil recovery to the expense of isolation of zones or intervals with harsh water breakthroughs.

7. The improvement of the technology ORZ is a relative recent trend both in Russia and abroad (in our situation in columns of 146 mm) due to lack of experience with the use of technology under real conditions. Therefore for this direction a more deepened approach is necessary in order to become an effective instrument concerning the control of water flood at multilayer fields. OOO "RN-Yuganskneftegaz" makes preparation for an adaptation of technology for two layer wells ("annular tube") which enable to maintain accounts of injected liquid immediately from the collar.

8. The improvement of technology ORZ is one step of the development of intellectualisation of oil production and differentiated water injection into heterogeneous geological objects. The company "Rosneft" is engaged in this at the moment.

List of references
1. Leonov V.A., Sharifov M.Z., Garinov O.M. ORRNEO Technology (Single Commingle Development of Several Production Zones) Introduction Experience on Oil Fields in Western Siberia/OOO NII "SibGeoTech"// SPE-104338

2. Lukyanov E.E., Kayurov K.N. Operation intellectualisation of injection and exploitation wells when using multi-packer arrangements for simultaneous injection and exploitation on multilayer wells//Karotazhnik. 2005. - No. 5. - p. 270-275.

3. GOST 8.586.1-2005 (ISO 5167-1:2003). Measurement of liquids and gases flow rate and quantity by means of orifice instruments. Part 1.

4. GOST 8.586.2-2005 (ISO 5167-2:2003). Measurement of liquids and gases flow rate and quantity by means of orifice instruments. Part 2.

5. GOST 8.586.4-2005 (ISO 5167-4:2003). Measurement of liquids and gases flow rate and quantity by means of orifice instruments. Part 4.

6. Rabinovich E.Z., Evgenyevich A.E., Hydraulics: 3rd ed. revised and amended. M.: Nedra, 1987. - 224 p.

7. Altshul A.D. Hydraulic resistance: 2nd ed. revised and amended. M.: Nedra, 1982. - 224 p.

Labels: Intelligent well completions, packers, Rosneft, Russia oil gas

posted by The Rogtec Team @ 14:28  2 Comments

Ye. O. Cherkas (OJSC NK Rosneft-NTC, D. A. Antonenko and P. V. Stavinsky (OJSC NK Rosneft)

Introduction
Drilling of horizontal holes imposes special requirements on the reliability of prediction of reservoir structure and quality within a large radius from the borehole. However, the reservoir prediction tools currently available to geologists suffer, to some extent or another, from measurement errors, which inevitably leads to modeling uncertainty and increases risks associated with drilling of horizontal holes. In view of the high costs involved in horizontal drilling projects and uncertainties inherent in any model, it has become imperative to address this issue. Incorrect description of a reservoir may result in swelling of irrecoverable field development costs. In a typical geological model, four major sources of uncertainty may be identified: (1) data quality and interpretation; (2) structural and stratigraphic models; (3) geological-statistical model and its parameters; and (4) uncertainty related to equiprobable realizations. In an ideal case, uncertainty decreases as the field becomes more developed.
As regards the Vankor field, which is currently under development, the most challenging tasks from the uncertainty standpoint are as follows: (1) reducing risks associated with horizontal drilling; (2) putting together a program for detailed exploration; and (3) refining the drilling program.

This paper proposes a method for analyzing uncertainties inherent in geological models. Modeling based on this method will yield data (in the form of maps) representing the quantitative distribution of uncertainties in determining the presence of a reservoir and its properties, which must be used to evaluate potential drilling risks.

General Information about the Field
The Vankor gas and oil field is located in the Krasnoyarsk Krai. This paper deals with one of five productive reservoirs with about 390 million tonnes of original oil in place. The field was discovered in 1988 and is yet to be put into commercial production. As of this study, there were 27 wells already drilled into the reservoir of interest. The deposit is a layer-uplifted pool, and the reservoir is terrigenous.

The Vankor uplift is an isometric structure extending from the south northward. The predominant depositional environment was shallow-water (barrier-bar complex).

Method
The best criterion for assessing the overall ambiguity determining the accuracy of geological model parameters is the "validity of the oil-in-place estimate". This criterion is dependent upon the basic characteristics of the reservoir and, therefore, may serve as a measure of accuracy in constructing the model. To evaluate the validity of the reserve estimate, one must evaluate the calculation accuracy of every parameter in the calculation formula


where stands for "stock tank oil initially in place", GRV stands for "gross rock volume", N/G stands for "net-to-gross", is porosity, is oil saturation, is oil density, and is the oil shrinkage factor.

To this end, a general procedure was established for handling each parameter, namely:

1. estimating possible variations in the value of each input parameter;
2. defining the RMS deviation;
3. mapping mean values of the parameter, with fixed values assigned to individual wells and taking into account the RMS deviation in the crosshole space;
4. estimating parameter variance; and
5. mapping oil-in-place variance by multiplying out variance maps for all parameters, provided that they are independent (this condition has been introduced to simplify the estimation process).

Uncertainty Calculation Approach
The principle of accounting for uncertainties is as follows: At first, one should estimate the possible error of the measurements determining the RMS deviation. Then, this error is multiplied by a random surface whose spread of values follows a Gaussian curve with mathematical expectation equal to zero and a variance equal to unity. Finally, the result is added to the reference surface:



where is one of the surface realizations, is the reference surface, is a surface or a constant determining the RMS deviation error, and is a random surface of errors with + and - values around zero.

A characteristic feature of the error surface is the fact that errors at well points acquire zero value, to increase gradually as one moves away from the wells. Thus, the RMS deviation depends on data quality and distance to the well. This approach suffers from the drawback that the range of the error variogram is unknown. It cannot be taken as equal to the variogram ranges used in the modeling of a property of interest because of their heterogeneity. Besides, randomly modeled errors may acquire positive as well as negative values because possible scenarios lie on either side of the baseline interpretation. The variogram range is selected by the interpreter based on subjective estimates of the error variance length. If the range is excessive, the final uncertainty map is smoothed out with partial or complete loss of information. If the range is too small, one will end up with a heavily "noisy" picture.

Structural Uncertainty: Presence of Reservoir
One of the burning questions during early phases of field development is whether oil is present in field areas not covered by exploratory drilling. Analysis of uncertainties may give a feel about the degree of uncertainty in identifying the presence of oil. One of the criteria for such analysis is the position of the top of the OWC. Analysis should proceed along the following lines: (1) delineate a surface over the top of a reservoir (average value); (2) introduce an error into the average value; and (3) derive intersection contours for multiple realizations of the top of reservoir and OWC surfaces.



A set of 200 contours of the top of reservoir-OWC intersection contours has been obtained for the Vankor field. The extreme values are shown in Figure 1. It can be seen that uncertainty in the position of the OWC top, which is essentially the sum total of uncertainties in the positions of the top of reservoir and the OWC, may give rise to a serious error in oil-in-place estimates. In the Vankor field, no reservoir was present within the area marked by the solid black line in 23% of cases out of the set of multiple realizations. A well drilled into the questionable target after this work had been completed failed to reveal any presence of oil. Thus, the high likelihood of absence of oil, predicted by modeling, was corroborated by real evidence. In the course of this work, two other areas characterized by great uncertainty as regards presence of oil were identified (marked by broken lines).

Structural Uncertainty: Rock Volume
Uncertainty in the position of reservoir boundaries and contact determination contribute the error in the gross rock volume measurement. As regards the structural modeling error, its major source is the ambiguity of structural surfaces in the crosshole space. The error grows with distance from wells and is zero in their immediate vicinity.

The error in determining the position of reservoir boundaries was selected based on the quality of seismic data. For the Vankor field, it was assigned as +-15 m.

Estimation of the spread of OWC values was based on the results of well tests in target sands. The spread of values was defined as the difference between the highest and lowest OWC levels. In the case of the Vankor field, the spread of OWC values was 15 m.

In this case, selection of variogram ranges was based on seismic data pertaining to the reservoir and well spacing.

As a result, maps of potential errors in determination of the top and bottom of the reservoirs as well as OWC were produced. Within the boundaries of the field, the average spread of reservoir top and bottom positions is about 5 to 6 m. Uncertainty in OWC position approaches maximum toward the field boundary and between the two blocks of the Vankor field. The rock volume was calculated as the product of gross thickness within a cell times the cell area. Figure 2 is a map showing possible deviations of the gross rock volume from average values.


Proceeding from the results of analysis of structural uncertainties, one can draw conclusions as to the presence of oil in field areas yet to be covered by exploratory drilling. This information is useful in deciding whether additional exploration of the field is needed. Information about possible variations in reservoir boundaries and OWC levels in the presence of oil is instrumental in decision-making processes as part of the field development strategy, especially when it comes to drilling of horizontal holes.

Uncertainty in Reservoir Properties
Variances of reservoir properties are mapped as follows. The input data include zero-variance points or, in other words, correlation marks by wells. An algorithm using a continuous Gaussian distribution and predetermined variogram parameters provide the basis for constructing error surfaces for a property with a given deviation from the mean. Variogram parameters are assigned based on the depositional environment (barrier-bar features, pronounced lateral consistency of properties) and well spacing. All realizations of error surfaces for a given property are reduced to a single variance map of this property at the assigned level of deviation from the mean.

Net-to-gross Ratio
The primary sources of error in identification of pay zones in wells include the resolution of logs, accuracy of determination of reservoir quality by logging, and error in the use of critical values to identify a reservoir. In order to assess uncertainty in reservoir properties, one must first know the deviation from the mean. It is recommended to select the deviation of the net-to-gross ratio from the mean on a distribution bar chart of the model (tied to log data), because we are dealing essentially with assessment of the uncertainty inherent in the model’s volumetrics. As can be inferred from Figure 3(I) the maximum net-to-gross ratio distribution density in accordance with the model is close to the interval of 15% deviation from the mean. The deviation of the net-to-gross ratio from the mean in the crosshole space is close to 4-5%.

Porosity Ratio
The sources of porosity determination error include measurement techniques, instrument error, and subjective factors. The deviation was selected from porosity distribution based on log data in correlation with core data (Fig. 3(II). It can be seen from Figure 3(II) that the maximum density of porosity values coincides with the 0.18-0.22 interval. This spread of values corresponds to 10% deviation from mean porosity. In the crosshole space, the deviation of porosity values is 0.6%, increasing to 0.8% toward field boundaries. The map indicates areas requiring updated data.

Oil Saturation Factor
The error in determining the oil saturation factor stems from the quality of interpretation of log data, reservoir resistivity determination error, groundwater level, height above groundwater level, capillary curve, etc.

According to the model, the distribution of the oil saturation factor is at its maximum in the 0.4-0.7 interval, which corresponds to 25% deviation from the mean (Fig. 3(III)). In the crosshole space, the deviation of oil saturation from the mean is 4.5%.



Uncertainty in Oil Properties
The oil shrinkage factor and density at the surface were determined as the average of a number of analyzed samples. To take the determination error into account, distribution functions were created with due account for the results of analysis of all oil samples in surface and reservoir conditions. The distributions provided the basis for calculation of oil parameter variances.

Uncertainty in Oil-in-place Estimates
After mapping of variances of each parameter in the oil-in-place estimation formula, variances of oil-in-place estimates are mapped by multiplying out variance maps for all parameters, provided that they are independent.

A map of uncertainties inherent in the density of oil in place is shown in Figure 4. According to the map, the overall uncertainty in field reserves may amount to about 10% of original oil in place.



A set of structural maps and maps of reservoir parameters with whatever errors they contained was used to produce a set of Vankor field reserve density maps, and estimation was made of the probability density and cumulative frequency functions for oil-in-place reserves expressed in tonnes. Over a set of a hundred realizations, the spread of oil-in-place estimates is within +-10% of the mean. According to the diagram of sensitivity of oil reserves to the major estimation parameters, the most tangible impact on uncertainty in oil reserves within the bottom portions of the reservoir is produced by oil saturation, although in most cases it is the gross rock volume. This can be explained by the fact that most of uncertainty is associated with the edges of the field and the space between two of its blocks, where rocks exhibit poorer reservoir properties (see Fig. 3).

Conclusion
The proposed method for assessing the overall uncertainty inherent in oil-in-place estimates makes it possible to plan detailed exploration of the field and to refine the reservoir management plan in order to reduce the combined geological risks and, consequently, increase the profitability of the project.

Labels: drilling risk assessment, Exploration, horizontal well, Label, modeling, oil gas, reservoir, Rosneft, Russia, Vankor field

posted by The Rogtec Team @ 10:50  0 Comments

Shell discusses further cooperation with Gazprom
Supermajor Shell will discuss further cooperation with Russian state-run Gazprom on energy projects in Russia's Far East, its was announced recently, reflecting industry hopes that lower oil prices will prompt countries with resources to offer better deals.

Anglo-Dutch Shell boss Jeroen van der Veer told Reuters in an interview the company would discuss more projects with the Russian gas giant after launching the $22 billion Sakhalin-2 liquefied natural gas project.

Van der Veer said the Russian Far East was within Shell and Gazprom's "area of mutual interests (AMI)".

"Based on the success (of Sakhalin-2), the partners will discuss with each other how we can give hands and feet to this AMI," the executive said.

SIIRTEC NIGI AWARDED THE GAS TREATING PLANT
Siirtec Nigi S.p.A. has announced that it has been awarded a contract by OAO Gazprom to implement the biggest silica gel plant in the world to be located at
the Portovaya Compression Station near the Russian town of Vyborg. Contract value is in the region of 400 million Euros. The contract is part of the ambitious Nord Stream Project which includes the 1,220 km gas pipeline that will carry natural gas from Russia to the European Union via the Baltic Sea. The award follows highly competitive international tender over several months.

The plant will dehydrate and control the hydrocarbon dew point of 170 million cubic meter per day (6 billion cubic feet per day) of natural gas to reach the stringent specifications required by the submarine pipeline. The plant, operating at 75 bar (1088 psi), will use high performance e silica gel manufactured by BASF.
Siirtec Nigi's scope of work includes the supply of technology, engineering and procurement of equipment and materials to be delivered in two phases (October 2010 and October 2011). In addition, the company will be responsible for erection supervision and start-up activities.


Kremlin unveils 126m barrel oil stash plan
Russia is working toward creating an oil and products reserve and could stockpile up to 16 million tonnes (126.4 million barrels) to take advantage of low oil prices, Deputy Prime Minister Igor Sechin recently told reporters today.

"We are getting ready for an Opec session, which will take place in March, and we are studying reserve options," Reuters quoted Sechin as saying.

He added low oil prices were prompting producers to think about reducing output.
"Such a reduction could reach up to 16 million tonnes, depending on market conditions. It is possible to study the possibility of buying this crude from the market," he said.

"You will agree that, at such prices, it is wise to talk about stockpiling options.

Slavneft ties up $100m loan
Russian gas giant Gazprom's banking arm Gazprombank has handed oil producer Slavneft a two-and-a-half-year $100 million loan to help it fund ongoing activities.
Slavneft is a joint venture between Gazprom Neft, Gazprom's oil arm, and TNK-BP, half-owned by UK supermajor BP.

Russia in Bolivia pipe talks
Russian gas giant Gazprom is in talks to build a system of pipelines in Bolivia, President Dmitry Medvedev said as the Kremlin launches a new push to boost its influence in South America.

Medvedev announced the plan after talks in the Kremlin with Bolivian President Evo Morales, whose visit to Moscow comes soon after similar trips by fellow leftist leaders Raul Castro of Cuba and Hugo Chavez of Venezuela.

"We spoke about Russia helping our friends in Bolivia with hydrocarbons and the construction of a gas transport system," Medvedev told Reuters after the meeting.
"A memorandum was signed with Gazprom, whose co-operation is moving into the practical sphere," he said, adding that work on the "strategic project" would run to 2030.

Medvedev said Russian efforts to boost ties with South America were not aimed at countering the US, traditionally the dominant power in the region.

Russia seals $25bn China cash for oil deal
China has agreed to lend Russian oil companies $25 billion in return for supplies from huge new East Siberian oilfields that will power its economy for the next two decades, a source close to the talks said today.

Russia's state oil champion Rosneft and pipeline monopoly Transneft signed a long-delayed deal to borrow the money from China Development Bank during talks in China, the source told Reuters. Rosneft and Transneft declined immediate comment.

Beijing has abundant cash that Moscow needs to access in the credit crunch as its government is running major deficits and some of its companies are finding it difficult to repay loans and borrow project finance on commercial markets.
The agreement, originally planned for the end of 2008, did not come easily and talks stalled in November last year over disagreements about interest rates and state guarantees China sought from the Russian government.

TNK-BP turns on Uvat taps
TNK-BP turned on the taps at the Urna and Ust-Tegus fields, in the Uvat area of West Siberia's Tyumen oil patch, and pledged to invest $500 million this year to increase output in a region where most other major deposits have been depleted.
TNK-BP plans to produce 1.5 million tonnes (11.8 million barrels) of oil from the Urna and Ust-Tegus fields this year.

Output will be ramped up to a peak of 9 million tonnes per year (71 million barrels) by 2020, officials said.

TNK-BP holds 15 licences in the region, with the Urna and Ust-Tegus fields lying in the eastern sector of the province. Crude from the two licence areas was fed into the 264-kilometre spur that links up with the national pipeline network run by Transneft . TNK-BP, has invested $925 million in the project to date, which it completed ahead of the original start-up date of 1 April.

The company last year launched another major project, the Verkhnechonskoye field in East Siberia.

EU united on Nord Stream and Nabucco
The European Union (EU) is united on the natural gas pipelines its members aim to build in a bid to diversify block's supply and import routes, Energy Commissioner Andris Piebalgs recently said.

Piebalgs spoke of unity after German Chancellor Angela Merkel asked the 27-member block to support a Nord Stream pipeline, which would bring Russian natural gas under the Baltic Sea directly to Germany. Czech Prime Minister Mirek Topolanek, whose country chairs the EU until June 30, said that Nord Stream, as a pipeline deepening the EU's reliance on Russian gas, was "a direct threat to the Nabucco project" that would skip Russia as a supplier.

Poland and the Baltic states have been the chief opponents of the Nord Stream pipeline, which bypasses them. Piebalgs said that while Poland would prefer other routes Warsaw was "not hostile" to the Russian-German line.

Gazprom plans to raise shelf oil and gas reserves by 2020
Russian gas export monopoly Gazprom said its hydrocarbon reserves on Russia's Arctic Shelf will increase by 5.6 bn tons of fuel equivalent between this year and 2020.

Gazprom said Russia currently had around 100 bn tons of fuel equivalent on the enormous shelf, which covers many time zones and is partly frozen. Around 80 % of these are gas.

"In 2005-2008, Gazprom's reserves on the Russian shelf grew by 1.5 bn tons of fuel equivalent as a result of geological exploration work," Gazprom said.
Last year, total hydrocarbon reserves held by Gazprom, the world's largest gas producer and supplier of a quarter of Europe's gas, rose by a record 10 % after the government granted it 10 major gas deposits and its oil reserves were boosted.

Sakhalin 3 Operator Selected After Prospecting
The operator of the Sakhalin-3 project will be determined as soon as geological prospecting is over, Deputy Prime Minister Igor Sechin reported. Asked about the chances of the two major rivals - Gazprom and Rosneft - Sechin noted that the most active bidder would win, adding that if the bulk of the project's reserve is gas, Gazprom would certainly be more willing than Rosneft. However, it is still too early to draw any conclusions, Sechin observed. He pointed out the difficult economic situation, which discouraged interest in large projects

New Energy Source Comes Onstream at Sakhalin II
President Dmitry Medvedev opened Russia's first liquefied natural gas (LNG) plant built by Sakhalin Energy Investment Company Limited (Sakhalin Energy).

The LNG plant is the heart of the Sakhalin II Project, one of the largest integrated oil and gas projects in the world.

The innovative and challenging Sakhalin II construction is near completion, and a new major energy source is now coming onstream. The infrastructure includes three offshore platforms, an onshore processing facility, 300 km of offshore pipelines and 1600 kms of onshore pipelines, an oil export facility and the LNG plant.


Rosneft Reviews 2008 Results and Approves 2009 Business Plan
According to the preliminary results, in 2008, Rosneft's oil and gas condensate production amounted to 110.1 mln tonnes, 9% more compared to the prior year. Organic production growth exceeded 4%, which is the best indicator among the Company's peers. This growth is primarily explained by further development of Rosneft’s extensive reserve base that was underpinned by increased production drilling at the Company’s core upstream enterprises. In 2008, Rosneft drilled 2,547 th. meters of production wells (up 6.3% compared to 2007) and commissioned 658 new wells. Marketable gas output totaled 11.2 bcm, an increase of 1% compared to 2007. Furthermore, Rosneft completed 58.7 th. meters of exploration wells, which enabled the Company to add 141 mln tonnes of oil and 36 bcm of gas of the Russian ABC1 category, thus fully replacing volumes produced in 2008.

Rosneft Approves 2009 Business Plan
At Rosneft's recent meeting, the Board of Directors also approved Rosneft's business plan for 2009 that envisages further growth in all operating indicators amid unfavorable macroeconomic environment.

In particular, in 2009, Rosneft plans to increase its oil and gas condensate output by 2% to 112.3 mln tonnes, primarily through accelerated production drilling (704 new wells) and the launch of the Vankor oil and gas field. Commissioning of a booster station at the Priobskoye field is expected to bring marketable gas production to 11.9 bcm, 5.8% more as compared to 2007.

To ensure continued reserve base expansion, in 2009, the amount of exploration work will be maintained at the 2008 level. Rosneft plans to complete 56.3 th. meters of exploration drilling, and to shoot 9.1 th. linear kilometers and 2.4 th. square kilometers of 2D and 3D seismic, respectively.

StatoilHydro Investing in Arctic Russia's Future
Russian and Norwegian dignitaries, students and journalists turned out last week for education grant awards and cooperation signing ceremonies between StatoilHydro and schools in Murmansk and Arkhangelsk.

"This is a very important occasion for north-west Russia and StatoilHydro. We're signing agreements to train local students for opportunities in the region's emerging oil and gas industry," said signatory Bengt-Lie Hansen, StatoilHydro president Russia.

Mutual benefit
"These programs are not only important for north-west Russia and the schools, but for StatoilHydro's efforts to be an Arctic champion!" said Mr Lie Hansen.

"A cooperation between people means that you believe in an idea. We believe in you and I hope you believe in us. Together, we can make a difference."

Aladdin Oil & Gas Reports Possible Oil Discovery in Orenburg
Aladdin Oil & Gas Company ASA has during the drilling of an exploration well (*101) revealed a petroleum system in a reef structure. A 6m column has been encountered with clear indications of hydrocarbons.

Aladdin Oil & Gas Company ASA acquired 3D seismic on the Bogdanovskaya license early last year, and during the interpretation a possible reef structure was identified. The company decided that it wanted to drill this structure, and a well was spudded on it 24th December 2008. The well is planned to be drilled to 950m, and the top of the reef was expected around 650m depth.


The well will be drilled to the planned TD of 950m, and is currently at 698m depth. The company hopes to find further hydrocarbons as the drilling proceeds.
Analysis of the electric logs will decide what intervals can be tested, before any commerciality of the discovery can be considered.


CALEDUS BUCKS ECONOMIC DOWNTURN WITH FORECAST FOR MAJOR GROWTH
Caledus, the Aberdeen headquartered well construction technology oil and gas service sector business, has unveiled plans for significant global expansion with forecasts of 250 employees worldwide and turnover of £50 million by 2012.

A three-year vision, agreed by the company's senior management team at a meeting in Aberdeen recently, will see Caledus reach its anticipated expansion through organic growth, strategic acquisitions and alliances, incorporating new product lines where appropriate to enhance the business.

This year Caledus predicts revenue will grow from £8million to £14million with an increase in jobs globally from 43 to 65. Staff will increase at the company's key strategic bases in Aberdeen (6), Perth Australia (3), Dubai (3) and Houston (3) while a new office will be opened in Kuala Lumpur in March and additional staff will be employed in Norway and Angola.

Labels: Gazprom, news, oil gas, Rosneft, Russia, Sakhalin, Shell, Slavneft, TNK BP, Uvat

posted by The Rogtec Team @ 12:38  0 Comments

Ye. A. Kopilevich and D. N. Levin, Rosneft Oil Company OJSC
One of the most promising methods for solving the problem of predicting geologic section types and reservoir permeability and porosity in crosshole space is spectral-time analysis (STAN). An innovative technology for complex spectral-velocity estimation (CSVE) in two and three dimensional crosshole space has been developed based on STAN and pseudo-acoustic transformations of seismic log data (Ye. A. Kopilevich, I. A. Mushin, Ye. A. Davydova and M. L. Afanasyev, 2000-2008); the technology makes it possible to determine geologic section types and reservoir permeability and porosity in crosshole space by a set of geophysical methods with mean accuracy of -17% (including permeability) based on subsequent drilling data. The procedure and technology for determining reservoir permeability and porosity and predicted oil productivity in two and three dimensional crosshole space are based on the use of certified seismic spectral-time attributes (STA) and seismic volume spectral attributes (SVSA), pseudo-acoustic velocities (impedances), and their integrated interpretation using modern mathematical tools: artificial neural networks (multilayer seismic perceptron) and statistical spectral correlation algorithms.

Integrated analysis of certified STA, SVSA and pseudo-acoustic velocities (impedances) using statistical spectral correlation algorithms consists of selecting statistical, correlation and gradient curves of certified SVSA and VPAC, screening types and classification methods. Integrated analysis of attributes is performed on this basis, culminating in constructing data cubes and charting geologic section types (clusters) of productive oil deposits. The basis for selection of the mathematical algorithm for artificial neural networks (ANN) for integrated interpretation is the fact that artificial neural networks controlled by sufficiently complex algorithms always produce a better result than evaluations of the discriminability of classes by simple computation procedures.

Figure 1 shows spectral-time patterns (STP) for various geologic section types of reef carbonates at the Kuyumba site compared to the corresponding lithologic columns and cross-section photographs. The parallel changes in the STP of the section types and their geologic appearance is clear. Sections with maximum development of macrofracturing are advantageous, since they preserve their basic productivity even when the procedures for opening up and testing are patently non-optimal. This group includes section types 1 and 2. The average group includes section type 3. Interlayering of dolomite, shaly dolomite, sandstone and mudstone is characteristic of this type. Reservoirs with limited development of macrofracturing type 4 were considered unfavorable. This type features both limited inflow of formation fluids and the potential for reducing the inflow in the presence of non-optimal procedures for opening up and testing. Shaly section type 5 includes mudstone which is dolomitic to various degrees. Type 6 is made up of dolomites. These are coarse carbonate deposits along sunken block edges. The presence of fracturing is typical; fissures are almost completely filled with clay materials, as is clearly visible in the cross-section photograph.

All the information presented above indicates that the nature of the distribution of seismic energy in frequency-time coordinates in STAN columns and their energy spectra is extremely specific for the different types of reef deposits (Fig. 1). This circumstance makes it possible to conclude that each section type has its own individual spectral-time pattern, which is consistent with the different lithogenetic characteristics of the section types, commercial productivity, capacity, permeability, etc. The diversity of STP makes it possible to map the development zones of the 6 distinct section types according to area and plot a corresponding chart. The chart was confirmed by subsequent drilling with an actual confidence level of more than 0.7, which is a high-quality result for such complex geological conditions.

A second example of the successful implementation of the innovative CSVE technology in a carbonate section is shown in Fig. 2, where data cubes have been constructed and charts of permeability and porosity and geologic section types have been plotted for highly prospective Lower Permian deposits in the fault-line area on the continental shelf of the Pechora Sea.

On the chart of geologic section types (Fig. 2A), the largest prospective zone, located between holes 1 and 3, matches the contours of reef seismic facies in plan. The smallest such zones which match the contours of reef seismic facies are located north of hole 3. Low-prospective and non-prospective section types are mapped in the rest of the area.


Fig. 1. Spectral-time patterns, lithologic columns, gamma-ray logging curves and cross-section photographs of six section types of carbonate reef deposits.

Fig. 2. A) chart of geologic section types of Lower Permian carbonate deposits; B) data cube of Lower Permian reservoir flow capacity.

The flow capacity distribution of horizon I(P1) (Fig. 2B) in three-dimensional space indicates significant vertical inhomogeneity, with the exception of reef bodies. It is worth mentioning that flow capacity has not been studied previously (before CSVE) based on seismic exploration data.

Hence the new geologic information obtained with the use of CSVE technology makes it possible to distinguish clearly the areas of favorable geologic section types and elevated values of reservoir properties -reef seismic facies- in two- and three-dimensional space.

The innovative CSVE technology has proven extremely effective for studying fractured Bazhenov shaly reservoirs. As we know, the study of deposits, much less prediction of their properties, based on seismic exploration data is not always feasible, and the results can be ambiguous, since there is often no persistent connection between acoustic and impedance parameters and productivity. As an example of the successful use of CSVE, Fig. 3 shows a chart of predicted oil productivity of Bazhenov deposits in the Sakhalin area (Western Siberia); three major zones of isometric form can be distinguished, located in the western, northeastern and southeastern parts of the area. The rest of the area is characterized by low prospectivity. The prediction was confirmed by subsequent drilling, with a confidence level of more than 0.7, which is a high-quality result for such an unconventional problem.


Fig. 3. Chart of predicted oil productivity of Bazhenov formations in the Sakhalin area.

Predicting the permeability and porosity of Lower Cretaceous reservoirs based on seismic exploration data and based on a combination of seismic exploration and gravity exploration was proven effective at the Vankor field (terrigenous deposits). Charts and data cubes of the porosity factor, effective thicknesses and specific volume (based on seismic exploration data and a combination of seismic exploration and gravity exploration) (Fig. 4) of Lower Cretaceous deposits (zones YaK III-VII and NKh III-IV) and a flow capacity chart (based on seismic exploration data) of NKh III-IV deposits were plotted and constructed. A correlation was identified between seismic spectral-time attributes (STA) and the permeability factor, and a data cube of the permeability of NKh III-IV reservoirs was constructed (Fig. 5); this had not been done successfully before. The basic pattern of the distribution of reservoir properties is that zones with elevated values are located on the flanks of the structure.

Fig. 4. A) NKh III-IV reservoir permeability cube; B) horizontal section of permeability cube.



Fig. 5. Charts of NKh III-IV reservoir porosity factor (A based on seismic exploration data; B based on a combination of seismic exploration and gravity exploration).

Within the Slavyansko-Temryuk petroleum zone (terrigenous deposits), seismic STA were used in combination with the VP-IP attribute (based on resistivity exploration data) to predict the reservoir permeability and porosity of Chokrak III1 deposits. Charts of the reservoir properties were plotted based on seismic exploration data, and a chart of the porosity factor was plotted based on a combination of seismic and resistivity exploration (Fig. 6). The data yielded new patterns in the distribution of zones with high permeability and porosity.

These results indicated that the innovative CSVE technology based on both seismic data and a combination of geophysical methods is highly effective for an extremely wide range of seismic geologic conditions. The CSVE technology is a new and little-known technology; accordingly, it is worth noting that its use is recommended in the "Recommended Practices for the Use of Seismic Exploration (2D and 3D) Data for Estimating Oil and Gas Reserves" approved by the Russian Federation Ministry of Natural Resources and endorsed by the State Reserves Committee in 2006.


Fig. 6. A) chart of the porosity factor of Chokrak III1 deposits based on seismic data; B) chart of the porosity factor of Chokrak III1 deposits based on a combination of seismic and resistivity exploration; C) chart of the permeability factor of Chokrak III1 deposits based on seismic data.

Labels: CSVE, Exploration, Geophysical, Porosity, Reservoir Permeability, Rosneft, spectral-time analysis, spectral-velocity estimation, STAN

posted by The Rogtec Team @ 15:00  0 Comments

Russia expects gas output at 700 bn cm in 2009
Russia's gas output is expected to reach 700 bn cm next year, up 3.2 % from an expected 678 bn cm this year, the Russian energy ministry said in a draft document. Last year Russia produced a total of 654 bn cm. According to the ministry's draft General Scheme for Gas Industry Development to 2030, in 2010 Russian gas output is forecast to reach 717 bn cm. The figure is a little higher than the recent outlook by the economic development ministry, which targeted output of 715 bn cm in 2010.

Over the next two years, some 85% of total output will continue to come from the traditional gas provinces in West Siberia. Production from East Siberia and the Russian Far East is expected to account for 16.7 bn cm in 2009 and 22.7 bn cm in 2010, up from 11.8 bn cm in 2007.

Russia is expected to add 783 bn cm of gas reserves in 2008, 686 bn cm in 2009 and 841 bn cm in 2010, the energy ministry's document said. Last year 684 bn cm of new reserves were added.

Turkmen cut 2008 gas output target
Turkmenistan, will cut gas output to 50 billion cubic meters this year from last year's 72.3 Bcm, Oil and Gas Minister Annaguly Deryaev announced.

The government had previously said Turkmenistan would produce 81.5 Bcm this year, but the country halted supplies to neighboring Iran in the first quarter amid a pricing row which led to a cut in output. Turkmenistan and Iran are due to sign a new supply agreement this month.

Turkmenistan sells most of its gas to Russia's Gazprom, but seeks to develop new fields and diversify exports. Deryaev also said Turkmen oil output would be 10 million tones this year, the same as last year.

DOCKWISE concludes USD 84m VYBORG / Shtokman Contract
Following the letter of intent announced in June 2008, Dockwise Ltd. announces that through its subsidiary Dockwise Shipping B.V., it has been contracted by Vyborg Shipyard to transport two topside structures from Korea to the Barents Sea and to install the units on semi-submersible hulls, using the float-over technique. Dockwise will receive USD 84m over the three-year contract, with the revenue contributing immediately to fourth quarter 2008 cash flows.

Vyborg Shipyard was commissioned by Gazflot (the operating arm of Gazprom) to construct two platforms designed for operation in the arctic conditions of the giant new Shtokman field, 600km offshore Murmansk. The first topside structure is scheduled to be loaded end April 2010 for installation between July and August 2010; the second at end October 2010 for installation around February 2011. The structures will be transported from Geoje Island, Korea, to the assembly locations in the Murmansk harbour area. Each topside is estimated to weigh around 22,000 tons.

Gazprom makes Yamal LNG partner list
Russia's Gazprom is considering US giants ExxonMobil and ConocoPhillips for its liquefied natural gas project in Russia's Arctic Yamal region, its deputy chairman said today.

"The list (of possible participants) is currently being made, but we do not exclude majors such as ExxonMobil and Conoco from joining the project," quoted Alexander Medvedev.

He also said Gazprom could work in gas projects in Alaska with Conoco in exchange for the US major gaining access to the Yuzhno Tambeisky deposits in Arctic Yamal. - "But nothing concrete has been decided yet."

Gazprom Neft weighs up MMG swap
The Khanty-Mansi Autonomous Region Government and Salym Petroleum Development N.V. (SPD) signed the Cooperation Agreement for 2009-2013 in Khanty-Mansiysk. The Governor of Yugra Alexander Filipenko and SPD CEO Harry Brekelmans signed the Agreement. This document will replace the current three-year agreement that expires by this year end.

New agreement covers extension of mutually beneficial cooperation aimed to further development of the autonomous region's industrial and scientific potential, application of the world high technologies in hydrocarbons exploration, oil production and processing, associated petroleum gas use and advanced environmental technologies.

Russia to build new pipeline
Russian gas giant Gazprom announced that it would build a pipeline directly to Georgia's rebel region of South Ossetia because of problems with natural gas supplies to the enclave after the recent war with Georgia. Gazprom said the new pipeline was needed because the current pipeline goes through the territory of Georgia proper.

Kupriyanov said the pipeline had been damaged and added that supplies were complicated by the fact that Gazprom had no direct transit agreement with Georgia for gas supplies through its territory to South Ossetia, said a Reuters note.

Rosneft to spend billions on Arctic fleet
Russian state-owned oil major Rosneft says it by year 2030 will need to construct 193 oil exploration and production units as well as vessels in order to meet the objectives of its shelf development programme.

The oil company, the biggest in Russia, intends to acquire 31 offshore licenses, among them on the northern shelf. For the development of the fields, the company will need 22 stationary platforms and ten mobile drilling rigs.

"Nord Stream on track for 2011 startup"
The Baltic Sea gas pipeline project, Nord Stream, is on track to deliver first gas in the fourth quarter of 2011 as it previously promised,

"We're absolutely on track to deliver the project on time and we are in budget," financial director Paul Corcoran said to Reuters.

His comments came as a relief to those supporting the 7.4 billion euros ($9.34 billion) project, which Russian President Vladimir Putin said recently that it could be scrapped if Europe continues to delay the project. The EU has identified the plan to pump 55 billion cubic meters of Russian gas annually to Europe via Germany - involving Russia's Gazprom, Germany's E.ON and BASF and Dutch Gasunie - as a key project to ensure secure gas supplies for Europe. But EU lawmakers have called for a new investigation into the Nord Stream's environmental impact.

Vantage Drilling Company Selects AMOS from SpeTec
Vantage Drilling, a company organized under the laws of the Cayman Islands, has chosen both the AMOS Business Suite for Maintenance and Purchasing and the AMOS2 Enterprise Suite for Quality Management throughout its fleet.

Vantage is dedicated to building and operating offshore rigs including technologically advanced dynamically-positioned Drillships and ultra-premium Baker Marine Pacific Class Jack-ups. Its first rig "The Emerald Driller" is scheduled for completion before Christmas 2008 at the PPL Shipyard in Singapore and is subject to a two-year drilling contract.

Brodospas also chooses AMOS
SpecTec (branch office in Croatia), has signed an Agreement for the delivery of AMOS Business Suite to Brodospas p.l.c., Split based shipping company. Software license includes Maintenance and Purchase as well as Quality and Safety modules.

New initiatives for developing Kazakhstan's oil and gas resources announced at KIOGE
The KIOGE Exhibition & Conference, Kazakhstan's leading oil and gas event, took place on 7-10 October in Almaty, Kazakhstan.

ITE's Oil & Gas Director, Graeme Coombes, explains the significance of the event in Kazakhstan, "Over 16 years, KIOGE has developed a reputation for being a source of the most up-to-date information about the oil and gas industry. Major new initiatives are regularly announced at the event and this year was no exception". This year, the two-day conference attracted a record number of delegates - 1,285.

A number of new initiatives and projects were announced during the KIOGE Conference. Kazakhstan's Minister of Energy and Mineral Resources, Mr. Sauat Mynbayev, revealed that a Memorandum of Understanding has been signed between KazMunayGas National Company (Kazakhstan), ConocoPhillips (US) and Mubadala Development (UAE), agreeing the terms for exploring and developing the N Block on the Caspian shelf. In addition, he announced that Kazakhstan is planning operations to develop the Satpayev and Darkhan shelf blocks.

Finally, Mr. Kiinov announced that a major issue for the industry has been resolved - from 1 January 2009, the price for gas exported through Russia will be determined according to the price in Europe minus GazProm's tariff and margin.

BP to restart last Azeri platform
A BP-led group will resume production in late December at the last Azeri offshore platform that remains shut after a gas leak in September, Azeri state energy company Socar said.

BP in September suspended oil production at two platforms, Western and Central Azeri, of the giant Caspian Sea deposit, Azeri-Chirag-Gyuneshli (ACG), due to a gas leak. It resumed work at Western Azeri in October.

"We will resume oil production at Central Azeri in the end of December," Socar chief Rovnag Abdullayev told reporters. ACG is the main source of oil for the BP-operated Baku-Ceyhan pipeline, which runs from the fields in the Azeri sector of the Caspian Sea to the Turkish Mediterranean coast.

Russia-China talks to pick up
Russia will resume talks with China over $25 billion in loans as part of a broader deal with Beijing over crude supplies within days, Russian Energy Minister Sergei Shmatko recently announced. The loans are of a crucial importance for Russian oil firms, which need cash to refinance their heavy debts and fund growth at a time of plunging oil prices. China is discussing lending Russian state oil major Rosneft and pipeline monopoly Transneft up to $25 billion in loans while Beijing would secure deliveries of Russian crude for 20 years.

Chinese Premier Wen Jiabao visited Moscow in October when the two countries agreed to jointly build a new overland supply route for Siberian oil to carry 300,000 barrels per day between the countries' trunk pipelines from 2009.

Gazprom not interested in Repsol
Russian energy giant Gazprom said it is not interested in buying 20% of Spanish energy company Repsol.

"Gazprom had and has no plans to buy 20% of Repsol," Sergei Kupriyanov, the Moscow-based company's spokesman recently stated. Gazprom supplies about a quarter of Europe's gas and has said it wants to expand into marketing and distribution, as well as liquefied natural gas.

Miller in under-investment warning
The world will face a shortage of oil supplies sooner than expected because companies already under-invest in production said Alexei Miller, chief executive of Russian gas monopoly.

"Oil companies are beginning to under-invest in production due to the financial crisis. I think it means that a supply shortage will come much earlier," he said. Gazprom controls Russia's fifth-largest oil producer, Gazprom Neft.

Daily Production Reaches 140,000 bopd at Salym oilfields
The total daily production from the Salym oil fields in Western Siberia, developed by Salym Petroleum Development N.V. (SPD), has reached 140,000 bopd (over 19,200 tone per day). SPD CEO Harry Brekelmans, commenting on the announcement, said: "Since October 2007, when SPD reached a 100,000 bopd milestone, we have continued increasing production volume in a systematic way by putting on stream new wells and optimizing production processes. Over this period, our daily production went up 1.4 times, which took us to the current benchmark of 140,000 bopd. We have produced over 37 million barrels (over 5 million tones) of oil year-to-date, which is more than 20% increase on our total oil production last year. SPD is steadily moving forward to its goal of becoming one of the best operating companies in Siberia."

Lukoil consider reducing 2009 spend
Russia's second biggest oil producer Lukoil could halve its 2009 capital spending programme to $4 billion if the global oil price falls below $45, chief executive Vagit Alekperov announced recently. Alekperov said that if Lukoil had to reduce the programme, the cut will mostly be applied to its refining projects and the company was not going to delay the launch of new deposits in west Siberia and the Caspian Sea.

"We have worked out three scenarios with oil price of $80, $65 and $45 per barrel," Reuters quoted Alekperov as telling reporters. "At $80 per barrel we will have investment programme of $8 billion, at the next scenario the programme will be less by $2 billion and at $45 the figure will be $4 billion."

TMK lines up ONGC pipe deal
TMK, Russia's largest producer of steel pipes for the energy sector, has said it had signed a deal to supply pipes to India's Oil and Natural Gas Corporation (ONGC).

Under the deal, TMK will supply ONGC with around 20,000 tones of seamless casing pipe over the next two years, Reuters quoted the company as saying in a statement. The pipes will be produced at the company's Volzhsky mill. TMK did not disclose the value of the deal. Yesterday, the company also said it had won a tender to supply pipes to Turkmenistan's national gas company.

Formation of CLYDEUNION – A Global Pumping Leader
Clyde Blowers, the East Kilbride--based group owned by Scottish entrepreneur Jim McColl, had reached agreement to purchase Textron's Fluid & Power Division. As a result of this transaction the former Textron company Union Pump, headquartered in Battle Creek, Michigan, will integrate with Clyde Pumps, the company formed by Jim McColl following the highly-publicised purchase in May 2007 from Weir Group of iconic company Weir Pumps based in Glasgow, Scotland.

These two leading pump companies have been re-branded as CLYDEUNION and its combined workforce of over 1400 will provide a comprehensive range of engineered centrifugal and reciprocating pumps as well as aftermarket parts and service from their global manufacturing facilities and joint venture companies in India and China.

Labels: Gazprom, Gazprom Neft, Lukoil, news, oil gas, Rosneft, Russia, Shtokman, TNK BP

posted by The Rogtec Team @ 15:19  0 Comments