Gas Production

In 2017, Rosneft’s gas production both in Russia and abroad totaled  68.41Recovered gas volume excluding flared gas and gas used for liquid hydrocarbons production. bcm, including 31.58 bcm of natural gas and 36.83 bcm of associated petroleum gas. 0.79 bcm of total gas production and 0.66 bcm of natural gas are produced by the Company's foreign projects in Vietnam, Venezuela, Egypt, and Canada, while its Russian production is responsible for 67.62 bcm. A part of the Company’s gas produced in Russia is used for liquid hydrocarbons production. In 2017, the Company’s production in Russia, including liquid hydrocarbons production, totaled 68.01 bcm.

Rosneft maintained its leadership position in daily production among independent Russian gas producers.Source: CDU TEK. In meeting its strategic objectives, the Company focuses on the long-term proactive growth of its gas business.

ACHIEVEMENTS IN GAS PRODUCTION IN 2017

Russia’s gas production grew by 1.5 bcm – 2.3% compared to 2016. The following factors predominantly contributed to the growth:

  • higher production of associated petroleum gas (APG) and natural gas in 2017 due to new well start-ups by Varyoganneftegaz, and higher gas deliveries through the Tyumen compressor station following its renovation
  • acquisition of Bashneft assets in Q4 2016
  • higher natural gas production due to new well start-ups and optimizations in existing well operations at Sibneftegaz

Rospan

The full-scale development of the fields operated by Rospan International is generally the largest contributor to the Company’s increased production of both gas and hydrocarbons until 2020. Upon reaching the design capacity, the annual gas production is projected to exceed 19 bcm with gas condensate, oil production at close to 5 mmtpa, and commercial butane and propane mixture production of up to 1.3 mmtpa. Active construction operations continued on key infrastructure facilities throughout 2017, such as the gas and condensate treatment unit at the Vostochno-Urengoysky license area, the condensate stabilization unit and methane removal system for propane-butane, the Vostochno-Urengoysky Gas Turbine Power Plant, the Korotchaevo station’s loading railroad terminal, as well as trunk pipelines, infield pipelines, and power supply facilities. Phased facilities start-up is to commence from late 2018 and continue into 2019.

Sibneftegaz

The Company’s largest gas producing asset, Sibneftegaz, produced 12.6 bcm over the year. Production maintenance projects at existing fields and the Beregovoye field’s lower horizon development are to facilitate a production increase of up to 15.5 bcm by 2020, with a further increase to 17 bcm.

Kharampur

Operations at the Kharampurskoye field project are a vital step toward Rosneft’s gas business development. The project is planned to develop the Cenomanian deposit’s conventional gas reserves and launch pilot production, with subsequent transition to the full-scale field development of the Turonian deposit’s hard-to-recover reserves. The Company has the expertise and experience necessary for such complex projects to be implemented efficiently. In the medium term, the project’s production is expected to plateau at 11 bcm per year, with a growth potential of up to 24 bcm per year.

Field development has been planned for the long term in the Kynsko-Chaselsky license area with a designed capacity of approximately 11 bcm per year and a growth potential of up to 16 bcm per year.

Throughout 2017, development and the involvement of strategic partners continued at new gas production centers based out of Rosneft fields in Eastern Siberia and the Republic of Sakha (Yakutia).

In particular, Rosneft and Beijing Enterprises Group Company Limited successfully closed a deal to acquire 20% of shares in Verkhnechonskneftegaz, which is currently developing the Verkhnechkosnkoye gas condensate field in the Irkutsk Region with potential for a major gas project development. Strategic partnerships open up new prospects for monetizing Eastern Russian gas reserves.

Rosneft is jointly continuing the Srednebotuobinskoye oil and gas condensate field development in the Republic of Sakha (Yakutia) with the consortium of India’s Oil India Limited, Indian Oil Corporation Limited, and Bharat PetroResources Limited.

Gas Production in Key Regions of Operation in Russia and Abroad,  bcm
2017 GAS PRODUCTION BY REGION
Rosneft’s largest gas-producing region resides in Western Siberia, where its gas production increased by 2.1% year-on-year to 48.5 bcm, with natural gas production amounting to 26.57 bcm. Natural gas was primarily produced at the fields operated by Sibneftegaz, Rospan International, and RN-Purneftegaz. Associated petroleum gas production amounted to 21.93 bcm, primarily produced at the Samotlorneftegaz, RN-Yuganskneftegaz, RN-Purneftegaz, and PJSC Varyeganneftegaz fields.
In Southern Russia, RN-Krasnodarneftegaz is the main gas-producing asset that produces both natural and associated petroleum gas, the region’s production amounting to 2.85 bcm in 2017.
Gas production abroad as part of the Company’s foreign projects was carried out in Vietnam, Venezuela, Egypt, and Canada.
Gas production in Central Russia totaled 2.74 bcm in 2017, and was primarily provided by the Orenburgneft and Samaraneftegaz fields, as well as the Bashneft-Dobycha assets acquired in 2016.
In Eastern Siberia, gas is produced at the Vankor group of fields, which are the largest in the region and where associated petroleum gas (APG) production amounted to 7.05 bcm in 2017, while natural gas production totaled 1.58 bcm. In the Far East, Rosneft primarily produces associated petroleum gas and natural gas at onshore fields and offshore Sakhalin Island, where RN-Shelf-Dalny Vostok provided the bulk of the 4.63 bcm of total gas production in 2017.