Australia's BHP Petroleum has signed an agreement with two Russian partners to conduct an appraisal and feasibility study of the Prirazlomnoye oil discovery in the Russian Arctic's Pechora Sea.
The joint venture, with BHP as operator, includes Russian manufacturer Rosshelf and gas giant Gazprom. The agreement requires the partners to drill two wells by the end of the northern summer and commits them to complete a feasibility study on development prospects by the end of 1994.
If the present accord receives approval from the Russian Federation, the group will form final plans for full field development to begin probably in 1996.
The Prirazlomnoye discovery, about 50 km offshore, was made in 1989 by Russian explorers who drilled two successful wells. A third well, drilled in August 1993, confirmed the potential of the field, but no official reserves data are available.
Earlier, Gazprom said the field held 547.5 million bbl of reserves and could produce 72,000 b/d (OGJ, Aug. 23, 1993, p. 12).
Development plans will have to consider the annual presence of sea ice in the Pechora Sea during November-April.
BHP is to be a majority owner in any development project with as much as 50% interest.
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