Eastern Siberia and the Far East (Onshore)

Eastern Siberia and the Far East are home to the Company’s major upstream assets. In 2017, production at the Vankor cluster and the Verkhnechonskoye field was 30.4 mmt. These regions will be the main source of production growth in the medium term, driven by the development of the new Yurubcheno-Tokhomskoye, Srednebotuobinskoye and Kuyumbinskoye fields within the Vankor cluster.

30.4 MMT oil production at the Vankor cluster and the Verkhnechonskoye field in 2017

Verkhnechonskneftegaz

Verkhnechonskneftegaz explores and develops the Verkhnechonskoye oil and gas condensate field. Located in the Irkutsk Region, the field is the second largest in Eastern Siberia. Verkhnechonskneftegaz also operates 12 Rosneft licenses throughout the Irkutsk Region and the Krasnoyarsk Territory.

The Verkhnechonskoye field is being developed using advanced technologies such as hydraulic fracturing and multi-stage hydraulic fracturing (MSHF). There are also ongoing initiatives to optimize well construction and completion practices, monitor pay-zone performance, and optimize operation of infrastructure facilities.

Verkhnechonskneftegaz carried out pilot batch drilling operations for four new wells in an effort to meet its strategic goal of reducing the time and cost of well construction cycle, resulting in drilling cycle time being cut by 10% and costs by 5%.

> 10% drilling cycle reduction demonstrated during pilot batch drilling operations at the Verkhnechonskoye field

The Vankor Cluster

RN-Vankor operates the development project for the Vankor cluster fields, including the Vankor field, which is the largest discovery in the last 20 years. The cluster also contains the Suzunskoye, Tagulskoye, and Lodochnoye fields located in the Turukhansky and Taymyrsky municipal districts in the Krasnoyarsk Territory’s north.

Since the beginning of commercial production at the Vankor field in August 2009, cumulative oil and gas condensate production from the entire Vankor cluster has exceeded 159 mmt.

RN-Vankor successfully implemented a well interventions program across existing wells, continued drilling new wells, and implemented production enhancement initiatives across its new assets. However, due to Rosneft’s compliance with the OPEC+ production cut deal, total production at the Vankor cluster in 2017 was capped at the 2016 level.

The company continues to drill production wells, as well as build top-priority facilities and infrastructure facilities across the Vankor cluster fields, which are developed using horizontal wells to improve production efficiency.

East Siberian Oil and Gas Company (Vostsibneftegaz)

East Siberian Oil and Gas Company operates five licenses (including two licenses as the subsoil user) in the Krasnoyarsk Territory. Vostsibneftegaz is currently conducting a project to develop an expanded first stage area of the Yurubcheno-Tokhomskoye field, located in the Evenki District of the Krasnoyarsk Territory.

The project is developed using unconventional solutions and advanced oil and gas production techniques due to its complex geology. Advanced technologies are deployed to ensure the project’s high economic efficiency, and its process and environmental safety.

In 2017, comprehensive technological testing of the oil treatment unit (OTU-1) commenced at the Yurubcheno-Tokhomskoye field. Construction and installation at Phase 1 facilities is almost complete, and further development of production and related infrastructure is in progress. In 2017, East Siberian Oil and Gas Company produced over 700 thousand tonnes of oil. Since development launch at the Yurubcheno-Tokhomskoye field, one of the largest in the Krasnoyarsk Territory, the site’s cumulative production has amounted to around 1.7 mmt.

During construction of multilateral wells at the project, a new pressure-controlled drilling technology and nitrogen injection are 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. The optimization methods successfully tried and tested at the Yurubcheno-Tokhomskoye field are now considered core practices, and Rosneft plans to roll them out to other subsidiaries.

East Siberian Oil and Gas Company (Vostsibneftegaz) Drilling rig at the Yurubcheno-Tokhomskoye field operated by East Siberian Oil and Gas Company

Taas-Yuryakh Neftegazodobycha

Taas-Yuryakh Neftegazodobycha operates 10 licenses (including two licenses as the subsoil user) in the Republic of Sakha (Yakutia).

Taas-Yuryakh Neftegazodobycha is currently developing the Central Block and the Kurungsky license area of the Srednebotuobinskoye oil and gas condensate field, which is one of Rosneft’s three largest assets in the Eastern Siberia oil cluster.

In 2017, oil production by Taas-Yuryakh Neftegazodobycha grew by 14% year-on-year to 1.2 mmt. The growth was due to an expansion in the company’s production capacity under Phase 2 development program, and commissioning of a high-pressure pipeline to transport oil from the Srednebotuobinskoye field.

The company has successfully tested multilateral technology for productive formations with complex geology, constructing five multilateral wells at the Srednebotuobinskoye field – including three using the Fishbones Stimulation Technology.

Using the Fishbones Stimulation Technology, a unique multilateral well was constructed with a record 5,030 m-long horizontal section in a pay zone. The main borehole of well No. 2039 is 1,530 m long with seven 500 m long sidetracks. Well construction was completed in less than 60 days – a much shorter timeframe than drilling two conventional wells.

The innovative well drilling technique allows drilling efficiency improvements in areas with complex geology, while eliminating certain technological constraints during field development. The average initial flow rate of wells drilled using the Fishbones Stimulation Technology is four times that of conventional horizontal wells.

RN-Sakhalinmorneftegaz

RN-Sakhalinmorneftegaz operates 28 onshore licenses on Sakhalin Island and three offshore licenses in the Sea of Okhotsk, and Rosneft is the subsoil user for all of them.

Approximately 70% of RN-Sakhalinmorneftegaz’s reserves are concentrated in five fields: the Odoptu-Sea, Katangli, Mongi, Mirzoev, and Nabil fields.

Due to successful well interventions and drilling programs in 2017, liquid hydrocarbons production exceeded 1.2 mmt, a 9.5% growth year-on-year. In January 2017, commercial production was launched at well No. 18 at the Lebedinskoye field with a flow rate of over 400 tonnes per day.