Occidental Petroleum Corp. has begun exporting oil from Russia as part of an enhanced recovery joint venture in western Siberia.
Ray R. Irani, Oxy chairman, president, and chief executive officer, said the venture's partially developed fields currently produce 40,000 b/d of 37 gravity oil from 100 wells. Gross production is expected to increase to about 65,000 b/d by 1994. Gross recoverable oil is estimated at more than 320 million bbl.
Oxy holds a 50% interest in the joint venture company, Vanyoganneft, and will market the oil.
In other activity, two Canadian companies are marking progress with Russian upstream joint ventures.
A group led by Tracer Petroleum Corp., Vancouver, B.C., received final approval from the Russian federation for registration of a venture, and Bitech Corp., Toronto, will begin preliminary work this month on an oil and gas development project in Siberia.
OXY VENTURE
Oxy's joint venture has received a license from the Russian government to export 150,000 metric tons (1.095 million bbl) of crude oil during fourth quarter 1992. The first export shipment occurred Oct. 26.
Occidental of Russia Ltd. and Chernogorneft Enterprise, a Russian production association, signed an agreement this year to form the equally owned venture to complete development of Vanyogan and Ayogan oil fields near Nizhnevartovsk and export the oil. The venture has implemented administration and marketing plans and begun work to apply modern oil field technology and equipment in field development and reservoir management.
Oxy will contribute technical expertise, provide access to western contractors, and staff the project with its share of on-site management, engineering, and technical personnel.
The program includes modifying and replacing existing facilities, reactivating about 150 shut-in wells, drilling production and water injection wells, and building facilities to handle increased production and provide an efficient water injection system.
Total capital outlay during the 25 year life of the fields is expected to top $800 million.
In addition Vanyoganneft will pursue methods to produce undeveloped, shallow, heavy oil zones holding large potential reserves.
This is the second joint venture Oxy has formed in Russia this year. In May, the company was the successful bidder for exploration and exploration rights to the 1.5 million acre Block 15 in the Komi republic's Timan Pechora basin,
Chernogorneft Enterprise is a production association responsible for development and production of 11 western Siberia oil fields near Nizhnevartovsk. It is one of the most profitable associations of its kind in Russia, Oxy said.
URENGOIL TRACE
Urengoil Trace, a venture of Tracer 25%, Urengoyneftegaz Geologia 50%, and undisclosed members 25%, received approval to explore, develop, and produce reserves in an area covering about 1.8 million acres near supergiant Urengoi gas field in the northern part of the West Siberian basin.
The area includes oil, gas, and condensate fields that were discovered in the 1980s by Russian oil and gas exploration associations but were not placed on production due to a shortage of pipeline capacity. However, Tracer said due to the nearness to Urengoi, the area has logistical and petroleum producing infrastructure in place.
Urengoil Trace plans at first to focus on obtaining Russian permission to develop one of the larger fields in its agreed area.
Full development will require construction of pipelines to tie into regional lines. Urengoil Trace is studying several development and early production scenarios.
RUSIA BITECH
Bitech and its C.I.S. partner, Rusia Petroleum, will start work this month on a development project in the Irkutsk region of Siberia.
A 12 member Bitech technical team is scheduled to go to Siberia to outline preliminary plans for the project.
Bitech and Rusia formed Rusia Bitech Petroleum to develop several fields, including Verkhnechonskoye oil field and Kaviktinskoye gas field, in a 137,000 square mile area with estimated reserves of 1.8 billion bbl of oil, 19 tcf of gas, and 243 million bbl of condensate.
Bitech will provide project and corporate management, product marketing, personnel training, equipment, technology, transportation facilities to refineries, engineering, procurement, and project financing.
Rusia will contribute the exploration and production licenses covering the project area and equipment, personnel, and financial resources.
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