Gazprom commissions Yuzhno Russkoye gas field

Uchenna Izundu
International Editor

LONDON, Dec. 19 Production has started from the 825.2 billion cu m Yuzhno Russkoye oil and gas condensate field in western Siberia, marking new supplies for Western Europe. It will produce 1.4 billion cu m of gas in fourth-quarter 2007. The field will reach its 25 billion cu m designed capacity in 2009.

At a commissioning ceremony, Alexey Miller, chief of field operator OAO Gazprom, said the field represented a major milestone in its relationship with major energy companies, including BASF AG, which has taken a 25% stake minus one voting share and one share without voting rights in the field.

Gazprom said the partners will increase the number of existing wells and develop the infrastructure. The field start-up facility was brought online in October 2007. Gas from the field will be dedicated to the planned 55 billion cu m/year Nord Stream pipeline from the Russian port of Vyborg under the Baltic Sea to Germany.

Yuzhno-Russkoye is in the Krasnoselkupsky region of the Yamal-Nenets Autonomous Okrug.

E.ON AG, also interested in project participation, is negotiating with Gazprom about the valuation of power plants in western and central Europe in which it will give Gazprom an interest under an asset swap.

Contact Uchenna Izundu at uchennai@pennwell.com


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