Greenfield Development Projects

ERGINSKY CLUSTER – A NEW STRATEGIC ASSET

The new strategic cluster was formed through integrating the Erginsky license area and Kondinskoye fields’ infrastructure with that of the largest oilfield in Russia, the Priobskoye field operated by RN-Yuganskneftegaz. Shared use of the integrated oil transportation system and the shared power supply system of the new cluster are being planned.

Erginsky cluster

COMMENCEMENT OF THE ERGINSKY CLUSTER FIELDS PRODUCTION WAS PERFORMED IN SEVERAL STAGES:

In autumn 2017, the Kondinskoye field was commissioned with the delivery of marketable products into the JSC Transneft Siberia’s oil pipeline system, and construction of the first start-up complex facilities was finished, including infrastructure facilities and 132 wells.

The Kondinskoye field development includes completion of a gas turbine power plant and the field support base (Phase 2 construction).

In the period 2019-2021, the sequential commissioning of the Erginskoye, Zapadno-Erginskoye, Chaprovskoye and Novo-Endyrskoye fields will be ensured, where exploration and additional field appraisal is currently underway.

The Erginsky cluster consists of five fields purchased by Rosneft in 2017 and is located in the Khanty-Mansi Autonomous Area in Western Siberia. It consists of the largest Erginsky license area containing a part of the Priobskoye field, which is operated by RN-Yuganskneftegaz, with Rosneft as the subsoil user; the Kondinskoye, Chaprovskoye, Zapadno-Erginskoye fields, with Kondaneft as the subsoil user; and the Novo-Endyrskoye field, with RN-Endyrneftegaz as the subsoil user.

License areas construction will be carried out to a standardized design which is aligned with the Company’s overall plan for the cluster development. Implementation of new technologies and approaches that are being developed to utilize associated petroleum gas (APG) will allow its rational, efficient utilization to reach a rate of 95% in the future. The license area facilities will be powered by gas turbine power plants located at the fields and connected to the JSC Tyumenenergo grid by 2020. Diesel power facilities have also been installed for uninterrupted power supply.

Development of an Expanded High-Priority Area of the Yurubcheno-Tokhomskoye Field

The Yurubcheno-Tokhomskoye field was discovered in 1982. Oil production began in 1987, with the produced oil being used for Rosneft’s own operational needs and sold to utility companies in the Evenki District. The field contains 62 producing wells and its oil production reached approximately 1.7 mmt as at 1 January 2018. The Yurubchenskaya deposit is the largest and most development-ready within the Yurubchensky license area.

The field development plan comprises three main phases. Phase 1 includes comprehensive development of an expanded high-priority area of the Yurubchenskaya deposit at the Yurubcheno-Tokhomskoye field (the most productive part of the Yurubchenskaya deposit). In 2017, Vostsibneftegaz began comprehensive technological testing of the oil treatment unit (OUT-1) with a design capacity of 2.5 million tonnes per year, and an oil pipeline connecting a metering station and the junction of OPS-2. Construction and installation at Phase 1 facilities is almost complete, and further development of production and related infrastructure is in progress. Following the completion of Phase 1, decisions will be made whether to continue the project development (Phases 2 and 3).

Phase 2 assumes the development of the entire Yurubchenskaya deposit.

Phase 3 will bring into development all deposits at the Yurubcheno-Tokhomskoye field within the Yurubchensky and Tersko-Kamovsky (southern section) license areas.

In 2017, eight drilling rigs were used on-site and 23 wells were constructed.

In January 2018, the second multilateral well was completed at the Yurubcheno-Tokhomskoye field. The hydrodynamic surveys showed oil flow rates as high as 289 tonnes per day, which is over two times as high as the flow rates at neighboring wells. During construction of the multilateral well at the Yurubcheno-Tokhomskoye field, nitrogen injection and a new pressure-controlled drilling technology were used, boosting production to full capacity while minimizing circulation loss and increasing initial flow rates. Innovative technologies are being actively deployed within the project, allowing an increase in productive deposit coverage to achieve higher oil recovery rates.

DETAILS

The project has been granted MET tax credits, and is focused on delivering oil to the ESPO pipeline via the Kuyumba–Taishet oil trunk pipeline

The project’s development will result in a new large production hub in Eastern Siberia

Suzunskoye Field Development

The Suzunskoye field operated by RN-Vankor is located in the Taymyr Autonomous Area of the Krasnoyarsk Territory, 150 km southwest of Dudinka. Suzun holds the license for the use of Suzunskoye field subsoil.

The project has been granted MET tax credits.

The project development comprises two phases:

  • Phase 1 – in September 2016, comprehensive technological testing of hydrocarbon production, treatment, and transportation facilities was launched at the field: five well pads and the first start-up complex of the oil treatment unit were constructed, oil transportation was ensured, and small-scale generating facilities were commissioned
  • Phase 2 – implementation of the gas program to ensure gas transportation to the Vankor field starting from 2018, followed by the commissioning of external power supply facilities and auxiliary facilities

The project’s development benefits from synergies with the already-operational Vankor field by sharing power supply, oil transport (via the Vankor central production facility oil is delivered to the Vankor–Purpe pipeline and further to Transneft’s pipeline system), and gas monetization arrangements (gas is supplied through the Vankor field to Gazprom’s gas transportation system).

In 2017, the construction, installation, and pre-commissioning operations at the infrastructure’s main facilities were continued for the first and second oil treatment start-up complexes, with a design capacity of 5.2 mmt per annum, and the oil pipeline connecting the Suzun OTU and Vankor OTU; as well as the current development of six well pads and their related infrastructure. The existing oil well stock as at 1 January 2018 is 40 wells, and the existing injection well stock is 21 wells. In 2017, production amounted to 4.1 mmt of oil.

DETAILS

In 2016, the Company launched comprehensive testing of the field

The project’s objective is to establish the Vankor cluster, a major oil production hub in the Krasnoyarsk Territory

East Messoyakha Field Development

Messoyakhaneftegaz is currently implementing a development project for the East Messoyakha and West Messoyakha license areas. The project participants include Rosneft (50%) and PJSC Gazprom Neft (50%), which manages day-to-day operations.

The project has been granted MET tax credits and export customs duty relief. Oil production at the East Messoyakha field in 2017 was 3.2 mmt (100% of the project), while the Company’s share totaled 1.6 mmt. The full-scale development of the East Messoyakha field began with the commissioning of key infrastructure facilities on 21 September 2016, and the volume of its oil output eligible for export customs duty relief is regulated by the Decree of the Government of the Russian Federation.

To meet the resultant growing production volumes, oil treatment facilities were expanded in 2017, and their construction, installation, and pre-commissioning operations have been completed. In June 2017, a modular cluster pumping station and a basic start-up complex for a first stage gas separator were commissioned. Planned construction of new well pads is underway, and infield infrastructure that was planned for 2017 has been constructed and commissioned.

A hydraulic fracturing pilot program is being implemented, the technology’s feasibility has been proven for vertical wells penetrating PK1–3 layers, and its effectiveness in increasing well productivity has been confirmed. Average growth in flow rates amounted to 40% compared to horizontal wells in similar geological conditions. Measures are prepared and carried out to increase the efficiency of the Fishbones Stimulation Technology, the roll-out of which has been approved.

In February 2018, the construction of the first horizontal production well reaching into deep reservoirs of the East Messoyakha field was completed. The initial oil flow rate amounted to 250 tonnes per day, which confirmed the high potential of developing the underlying productive formations containing lighter oil than the main productive formation.

Pilots at the well include multi-stage hydraulic fracturing, as well as hydrodynamic and geophysical surveys to revise design solutions for well development and make decisions regarding the further drilling program.

East Messoyakha Field Development East Messoyakha Field Development

Srednebotuobinskoye Field Development (Phase 2)

Taas-Yuryakh Neftegazodobycha holds the subsoil use license for the Central Block of the Srednebotuobinskoye field and the Kurungsky license area, and operates eight licenses with Rosneft as the subsoil user.

The asset is 50.1% controlled by Rosneft, 20% by BP Russian Investments Limited, and 29.9% by TAAS INDIA PTE. LTD.

The project has been granted MET tax credits and export customs duty relief.

The field’s oil and gas condensate production in 2017 was 1.2 mmt, a 14% increase compared to 2016. The existing oil well stock as at year-end 2017 was 106 wells. The start-up complex of key infrastructure facilities (oil pipeline, CPF, and metering station) was launched during the pilot production phase.

In 2017, five multilateral wells were completed, including those drilled using the Fishbones Stimulation Technology, with a total of 18 thousand meters drilled. Rosneft obtained confirmations on the technical feasibility of drilling multilateral wells in the Srednebotuobinskoye field conditions to increase well productivity and optimize development.

The technology is planned to be rolled out in 2018 following assessments on the efficiency of multilateral well drilling in the field. As scheduled for 2018, infrastructure facilities will continue to be commissioned as part of the field’s Phase 2 construction and the necessary exploration and production drilling programs will be carried out.

Kuyumbinskoye Field Development

The Kuyumbinskoye field located in the Evenki District of the Krasnoyarsk Territory is developed by LLC Slavneft-Krasnoyarskneftegaz, a subsidiary of NGK Slavneft. NGK Slavneft’s major shareholders are Rosneft and Gazprom Neft. Currently Gazprom Neft manages the project’s day-to-day operations.

The field was discovered in 1972. The project has been granted MET tax credits and export customs duty relief.

The Kuyumbinskoye field development project comprises several phases. Phase 1 includes current construction operations at the field and the launch of the first start-up complex, an allocated area with the most explored reserves. Subsequent stages envisage bringing into development the remaining deposits within the Kuyumbinsky license area.

As part of pilot development, Head Pump Station No. 1 was connected, and oil is delivered to the Kuyumba–Tayshet trunk pipeline. Main operations are underway at the key facility, CPF: installation of core process equipment, racks, and tanks. Construction and installation work is underway at the Right Bank of the Podkamennaya Tunguska–CPF oil and gas gathering pipeline. As at the end of 2017, the field contained 53 producing wells. Production drilling was continued at five well pads.

Russkoye Field Development

The Russkoye field, developed by Tyumenneftegaz, was discovered in 1968 and is located in the Yamal-Nenets Autonomous Area within the Arctic Circle.

The project has been granted MET tax credits. The bulk of the Russkoye field’s oil reserves is concentrated in the Cenomanian deposits and contains heavy, high-viscosity, sweet, low-paraffin oil. The highly marketable oil is suitable for mixing with gas condensate to conform with Transneft’s technical specifications for oil delivery to the pipeline system. The gas reserves are located in the PK1–7 formation gas cap and the underlying PK layers, and layers containing gas and condensate in the Achimov and Jurassic deposits. The completion of asset retesting in the Jurassic deposits determined a development strategy, and an additional reserves exploration project is currently under development.

83 wells were drilled in 2017, including 71 production wells, two gas wells, and 10 water supply wells. During the pilot production phase in 2016–2017, eight multilateral wells were drilled, including three using the Fishbones Stimulation Technology. A well possessing unique trajectory was successfully constructed, with a vertical depth of 867 m and its total length amounting to 2,915 m, following a drilling time of 26 days.

The critical ground infrastructure was constructed on-site. The oil is transported by cargo trucks to the closest oil treatment and gathering facility located 404 km away, near the town of Gubkinsky.

Construction and installation operations covering key production, auxiliary, and other field facilities are underway in preparation for the commissioning of production facilities under Phase 1 field development in 2018. Additionally, an APG-fired power plant has been commissioned.

Tagulskoye Field Development

The Tagulskoye field operated by RN-Vankor is located within the Turukhansk District of the Krasnoyarsk Territory. LLC Tagulskoye holds the license for the use of subsoil.

Phase 1 of the pilot program assessing the production potential of layers and determining an optimal field development system was completed from 2010 to 2012, and the program entered its current second stage in 2016. The project has been granted MET tax credits.

Its objective is commissioning the Tagulskoye field as part of the efforts to establish the Vankor cluster, a major oil production hub in the Krasnoyarsk Territory.

The project’s development benefits from synergies with the operational Vankor field by sharing power supply, oil transport (via the Vankor–Purpe pipeline and further to Transneft’s pipeline system), and gas monetization arrangements (gas is supplied through the Vankor field to Gazprom’s gas transportation system).

Construction and installation operations on key infrastructure facilities are underway in preparation for commencing full-scale development of the Taugulskoye field scheduled for 2018. The existing oil well stock was 26 wells as at 31 December 2017, and production for the year amounted to 0.3 mln tonnes of oil.

Drilling at the Tagulskoye field Drilling at the Tagulskoye field

Lodochnoye Field Development

The Lodochonye field operated by RN-Vankor is in the Krasnoyarsk Territory, 140 km west of the Igarka River and bordering the Vankor license area to the north and the Tagulsky license area to the south. The project’s objective is to commission the Lodochnoye field and further establish the Vankor cluster, a major oil production hub in the Krasnoyarsk Territory. Samotlorneftegaz holds the subsoil use license for the area. The Lodochnoye field is a multipay field, large in recoverable reserves, and complex in terms of geology. The project has been granted MET tax credits. Production drilling at the field was started in autumn 2016; during 2017, three production wells were drilled and developed. To assess the production potential of core assets in the most promising areas, pilot production was started at the field in 2017. Process start-up stage was completed for the CP No. 1–CP No. 103 of the Vankor Field inter-field oil pipeline. Produced hydrocarbons are delivered to PWDU-South free water knock-out unit and then to the oil trunk pipeline system. As part of preparations for commercial production start-up, production drilling will be continued at the field, along with the construction of infrastructure facilities (oil treatment unit, gas compressor station, high-voltage power lines, etc.), and a research program will be carried out.

Well pad at the Lodochnoye field Well pad at the Lodochnoye field