Timan-Pechora joint venture producing oil
The OOO Naryanmarneftegaz (NMNG) joint venture has begun oil production from six wells in Yuzhno Khylchuyu field in the northern Timan-Pechora basin of the Russian Arctic.
By OGJ editors
HOUSTON, Mar. 28 -- The OOO Naryanmarneftegaz (NMNG) joint venture has begun oil production from six wells in Yuzhno Khylchuyu field in the northern Timan-Pechora basin of the Russian Arctic.
Unspecified volumes of oil are being trucked to an existing terminal on Varandey Bay on the Barents Sea for export via tanker to international markets. An 80-mile pipeline to replace the truck shipments is due for completion this winter or next winter.
Interests in the joint venture formed in 2005 are OAO Lukoil 70% and ConocoPhillips 30% (OGJ Online, July 1, 2005). ConocoPhillips also has an equity interest in Lukoil.
ConocoPhillips said it expects to spend $1 billion in 2007 in Russia, split evenly between NMNG and its 9.3% interest in supergiant, Eni-operated Kashagan field in the Caspian Sea.
ConocoPhillips has booked 170 million bbl of reserves or 15% of the combined ultimate expected bookings from the two projects. Yuzhno Khylchuyu field is the anchor field on the NMNG acreage block.
The terminal is to be expanded to 240,000 b/d capacity by the end of 2007. NMNG is expected to be producing and shipping about 200,000 b/d of oil at peak.