Overview of Production in Regions of Operation
Western Siberia is Rosneft’s key oil-producing region. In 2019, Western Siberian assets increased oil and gas condensate production by 1.8% year-on-year, accounting for 60% of the Company’s output. The Company’s key producing assets in Western Siberia include RN-Yuganskneftegaz (30% of Rosneft's total oil and gas condensate production), Samotlorneftegaz (8% of total), and RN-Uvatneftegaz (5% of total).
To enhance oil recovery at its fields in Western Siberia, the Company has been monitoring and streamlining its existing development systems by switching from conventional directional wells to horizontal wells drilled using multi-stage hydraulic fracturing techniques (MSHF HW). This technology significantly increases the well productivity rate and the scope of reserves under development, while also reducing the well stock and enhancing the project economics. The Company massively leverages MSHF HWs at its mature assets in Western Siberia.
New projects are also underway, with the Russkoye field and the Erginsky cluster standing out as the largest plays.
Western Siberia is also a major gas-producing region, with natural gas production reaching 47 bcm in 2019.
RN-Yuganskneftegaz is the Company’s largest asset operating 37 licence areas with Rosneft as the subsoil user. The bulk of proved reserves (80%) are concentrated in the Priobskoye, Prirazlomnoye, Mamontovskoye and Malobalykskoye fields.
Despite the temporary limitations on oil intake by Transneft’s trunk pipelines, RN-Yuganskneftegaz produced 69.5 mmt in 2019, virtually flat year-on-year. July 2019 saw oil production of 198 kt per day, an all-time high since 1964. This was partly due to the 1.5x increase in the share of horizontal wells (38% of all new wells in 2019).
RN-Yuganskneftegaz ensures stable production both by drilling new wells and performing well interventions for incremental oil production and by maintaining and enhancing its basic production.
The drilling efforts resulted in a number of industry records, including the first-ever two-string horizontal multilateral well with multiple branches built using the Fishbones stimulation technology. The total length of the well is 5,234 m, with the horizontal wellbore at 2,161 m. The initial oil flow rate exceeded 600 t per day, which is several times higher compared to the neighbouring standard horizontal wells. On top of that, RN-Yuganskneftegaz set another industry record for the fastest two-string horizontal well construction. It took merely 7.44 days to drill such a well at the Salymskoye field, a 20% improvement over the previous record. At the same time, the commercial drilling rate exceeded 14 thousand m per rig per month.
RN-Yuganskneftegaz made significant progress in enhancing the efficiency of well interventions with hydraulic fracturing, which resulted in 1.5 mmt of incremental production (up 27.3% year-on-year). This was achieved by streamlining hydraulic fracturing models, better use of downhole pumping equipment, introducing new software modules and modelling tools (geomechanical modelling under varying stress, proxy modelling, deployment of Eurasia’s first-ever domestic hydraulic fracturing simulator, RN-GRID), and improvements in the reservoir flooding system.
Samotlorneftegaz operates nine licence areas (including eight licence areas as the subsoil user). Over 98% of Samotlorneftegaz’s proved reserves are concentrated within the Samotlor field, one of the largest in the world. Commercial production at the Samotlor field began in 1969 and peaked at over 150 mmtpa in the 1980s.
In 2019, it produced 24.5 mmtoe of hydrocarbons, with the output of liquid hydrocarbons standing at 19.5 mmt (including the Lodochnoye field).
The Samotlor field relies on government support to continue drilling new wells and performing well interventions. The incentives put in place in 2018–2019 helped overcome the decline in production, which had demonstrated an average annual decrease of 5% up to 2018. In 2018–2019, the Company brought down the annual rate of production decline to ca. 1%.
The well interventions at Samotlorneftegaz translated into 2.5 mmt of incremental production (up 5.6% year-on-year).
RN-Uvatneftegaz operates 20 licence areas (including 19 licence areas as the subsoil user) in the Tyumen Region, Omsk Region, and the Khanty-Mansi Autonomous Area – Yugra. The bulk of proved reserves (ca. 70%) are currently concentrated in the Ust-Tegusskoye, Zapadno-Epasskoye, Urnenskoye, Severo-Tyamkinskoye, Severo-Tamarginskoye and Protozanovskoye fields, which are being developed as part of the Eastern Development Centre.
In 2019, RN-Uvatneftegaz produced 10.6 mmtoe of hydrocarbons, including 10.3 mmt of liquid hydrocarbons. It has been maintaining a plateau of ca.10 mmtpa liquid hydrocarbons for six years already.
In 2019, RN-Uvatneftegaz also marked a new milestone with 100 mmt of oil produced since the commencement of the Uvat project.
In 2019, RN-Uvatneftegaz increased well interventions for incremental oil production (excluding drilling) by 49% year-on-year and enhanced incremental production by 8.5% to 2.9 kt per well.
Varyeganneftegaz operates 18 licence areas (including five licence areas as the subsoil user) in the Khanty-Mansi Autonomous Area – Yugra. The bulk of proved reserves (over 80%) are concentrated in the Verkhnekolik-Eganskoye, Severo-Khokhryakovskoye, Van-Eganskoye, Khokhryakovskoye, Orekhovo-Ermakovskoye and Severo-Varyeganskoye fields.
In 2019, Varyeganneftegaz produced 9.7 mmtoe of hydrocarbons, including 6.3 mmt of liquid hydrocarbons (up 5.8% year-on-year).
Varyeganneftegaz successfully completed pilot tests on horizontal wells using a combination string drilling technology. This innovative approach facilitates well construction by eliminating a number of extra operations to accelerate the drilling rate and enhance the project economics. The tests resulted in a nearly twofold increase in the drilling rate. It took 12.7 days to drill three combination string horizontal wells vs the average of 22 days required to drill similar wells using the conventional process.
Varyeganneftegaz increased well interventions for incremental oil production (excluding production drilling and sidetracking) by 19% to 138 and enhanced incremental production by 38% from 899 to over 1 kt per well.
RN-Nyaganneftegaz operates four licence areas (including three licence areas as the subsoil user) in the Khanty-Mansi Autonomous Area – Yugra. The bulk of proved reserves (over 99%) are concentrated in the Krasnoleninskoye field, including the Kamenny (western part), Em-Egovsky + Palyanovsky and Talinsky areas.
In 2019, RN-Nyaganneftegaz produced 8.7 mmtoe of hydrocarbons, including 6.9 mmt of liquid hydrocarbons (up 17.6% year-on-year). The growth was driven by a range of initiatives, in particular, intensified development of hard-to recover reserves at the Krasnoleninskoye field, with the production volumes for this type of reserves increasing by 21 % year-on-year.
In 2019, RN-Nyaganneftegaz commissioned 197 new wells (up 4.8% year-on-year). RN-Nyaganneftegaz increased well interventions for incremental oil production, including drilling new wells and sidetracking, by 10 % year-on-year, which resulted in 1 mmt of incremental production.