Development advances at East Siberian field

Verkhnechonskneftegas (VCNG), an affiliate of TNK-BP, has let a contract to KBR for front-end engineering and design of a production facility at giant Verkhnechonskoye oil field in Eastern Siberia.

Aug 5th, 2009

By OGJ editors
HOUSTON, Aug. 5
– Verkhnechonskneftegas (VCNG), an affiliate of TNK-BP, has let a contract to KBR for front-end engineering and design of a production facility at giant Verkhnechonskoye oil field in Eastern Siberia.

The contract covers a single facility to handle 140,000 b/d of crude oil to be tied into a new 85-km link to the Eastern Siberian Pacific Ocean (ESPO) pipeline.

The remote field, 4,000 km from Moscow and 1,100 km north of the regional capital of Irkutsk, holds reserves of about 1.4 million bbl, development of which will require investment of $4-5 billion, according to TNK-BP. It was discovered in 1978.

VCNG, in which TNK-BP holds a 68.5% interest, completed a pilot development phase in 2007 and began an “early oil” project last year. That work included construction of the pipeline link to ESPO and a road to neighboring Talakan field. Deliveries into the ESPO line began last October.

Target flow from the early-oil project is 20,000-30,000 b/d by the end of this year. TNK-BP hopes to achieve plateau production of 140,000 b/d by 2014.

KBR said the field will produce at the plateau level through 430 production wells and have 215 water-injection wells. It will have 75 well pads.

The reservoir is about 1,700 m deep and has initial reservoir pressure of about 2,250 psia and temperature of 12°-20° C.

Rosneft is another major shareholder in VCNG.

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