Gazprom loads first oil shipment from Arctic’s Prirazlomnoye field

JSC Gazprom Neft has loaded its first shipment of oil produced from Prirazlomnoye field, 60 km offshore in the Russian Arctic shelf. The field was discovered in 1989 and is the only Russian hydrocarbon development project in the Arctic shelf.

The 70,000-ton load of oil will be delivered to consumers in northwestern Europe by the Mikhail Ulyanov and Kirill Lavrov oil vessels, which were built on Gazprom’s request for shipping oil from Prirazlomnoye.  

The field’s recoverable oil reserves total 71.96 million tons, with projected oil production expected to reach 6 million tons/year after 2020.

This is the first time that Arctic oil has entered the global market. The oil was traded among refining companies in northwestern Europe during the first quarter.

“Today’s event is highly important for strengthening Russia’s position in the global oil market. We increased the flexibility and reliability of oil supply to almost any part of the world,” stated Alexey Miller, Gazprom management committee chairman.

Gazprom said part of the feedstock will be sold under long-term contracts once Prirazlomnoye production volume is increased.

Drilling, production and storage, end product processing and loading are conducted on an offshore ice-resistant stationary platform that Gazprom says “fully excludes any oil spills during production, storage, and loading processes.” Production from the platform started in December (OGJ Online, Apr. 26, 2013).

Gazprom Neft is operator of Prirazlomnoye; wholly owned subsidiary Gazprom Neft Shelf is license holder.

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