U.S.-SOVIET VENTURE EYES FEBRUARY START-UP

White Nights joint venture partners expect to start producing crude oil in western Siberia in early February 1991.

Production will come from about 12 shut-in wells in Tagrin oil field that venture partners plan to begin recompleting about Jan. 15. Contracts for the work were to be awarded by mid-December.

White Nights was formed June 8 by Anglo-Suisse Inc. (ASI), Houston, and Varyeganneftegaz-Varyegan Oil & Gas Association (VOGA) of the Ministry of Oil & Gas-to study feasibility of drilling about 400 horizontal wells and workovers of wells in West Varyegan and Tagrin oil fields (OGJ, June 25, p. 29). Each partner owns 50% of the joint venture.

Final approval of the joint venture came Nov. 15 from the Soviet Ministry of Finance, following approval of the joint engineering feasibility study on Oct. 31 by the Ministry of Oil & Gas.

In late July, VOGA agreed to add Roslavl oil field, south of Tagrin, to the joint venture to ensure White Nights would have total estimated reserves of 1.1 billion bbl projected under the venture (OGJ, Aug. 6, p. 32).

In late September, Phibro Energy Production Inc., a subsidiary of Phibro Energy Inc. (PEI), acquired a farmout in the venture from ASI. PEI also acquired a 10% equity interest in ASI and is retaining options to increase its interest in ASI to 30% in 1991.

PLANS REVISED

Under the 25 year term of the joint venture agreement, White Nights partners will drill about 550 horizontal wells and recomplete more than 100 wells in West Varyegan, Tagrin, and Roslavl fields.

Partners expect to produce about 800 million bbl of oil during an unspecified period of time. ASI and Phibro will export their shares of production.

Because Tagrin wells targeted for early recompletions are shut in, all oil produced through workovers will be considered incremental production increases, with U.S. partners receiving half.

CONTRACTOR CHOICES

ASI Pres. Gil Labbe said contractors will be hired for workovers well by well, depending on treatments specified.

Bids are out, but no final choices made.

Labbe said White Nights is accepting bids on long term contracts for all other project field work, equipment, and supplies, including drilling, logging, completion, tools, bits, and geological and engineering services. Contracts also will be awarded for construction of field offices, housing, and communications facilities.

ASI and Phibro could begin shipping equipment by early February to begin drilling horizontal wells. White Nights will spud the first horizontal wells about July 15, 1991, Labbe estimated.

"Even mobilizing the people and equipment for the recompletions is a major job," he said.

Under a limited contract that expired on White Nights' date of registration, ASI last summer hired Schlumberger to gather supplemental well information and to confirm existing Soviet well data. Schlumberger is among the companies bidding for long term participation.

Labbe also said more seismic information is being gathered, which could lead to further expansions of White Nights plans.