By OGJ editors
HOUSTON, June 26 -- A joint venture of OAO Lukoil and ConocoPhillips has begun first-stage oil and gas production from Yuzhno Khylchuyu field in the Nenets Autonomous District of northwestern Siberia, Russia.
The first 32 development wells in the arctic field are producing oil through a 98-mile, 21-in. pipeline to the Varandey oil export terminal on Kola Bay on the Barents Sea. The field's oil is 35.5° gravity with 0.71% sulfur, better than Russia's 32° gravity, 1.3% Urals export blend.
Discovered in 1981, Yuzhno Khylchuyu field has more than 500 million bbl of proved oil reserves. It is considered one of the largest fields in Russia's Timan Pechora oil and gas province and the anchor field for an overall $4 billion in developments by the joint venture.
Interests in the OOO Naryanmarneftegaz joint venture, established in 2005, are Lukoil 70% and ConocoPhillips 30%.
Besides the 32 wells, the first stage comprises a 3.8 million tonne/year oil treatment unit; an oil desulfurization unit; a 40,000 cu m tank farm; a pump station; a 17-mile, 11-in. Yareyu-Yuzhno Khylchuyu high-pressure gas pipeline; a 370 million cu m gas treatment plant; a 125-Mw power supply complex; and 178 miles of 220 kv high-voltage transmission lines.
Second-stage start-up planned for December 2008 involves 32 new wells, doubling the capacity of the oil treatment unit, and adding a compressor station and sulfur disposal and storage facilities.
Design capacity is projected at 150,000 b/d in 2009. Crude is to be loaded from floating storage at Varandey onto 70,000 dwt tankers for shipment to Europe and North America.
