A U.S.-Norwegian combine last week disclosed plans for an exploration and development campaign in the Timan Pechora basin of Russia.
Partners Texaco Inc., Exxon Corp., Amoco Corp., and Norway's Norsk Hydro AS formed Timan Pechora Co. LLC (TPC) to conduct the project on a contract area covering 2,847 sq miles. Project site for the limited liability company lies north of the Arctic Circle, about 1,100 miles northeast of Moscow.
Texaco said the contract area holds estimated recoverable resources of more than 2 billion bbl of oil.
More than 130 wells drilled by Arkhangelskgeologia, administrator of hydrocarbon activities in the region, have shown a success rate of more than 60%, resulting in discovery of 11 oil fields.
WHAT'S PLANNED
Pending final approval of a production sharing agreement (PSA) by the government of the Russian Federation and the Russian Federal Assembly, TPC plans to begin assessment this year of the commercial potential of the contract area.
Once the PSA is approved, TPC plans to spend more than $100 million to begin a 3 year detailed appraisal of Roman Trebsa field, largest of the current 11 fields. The program will include production testing of some existing wells, seismic surveys, a pilot waterflood, and delineation drilling.
TPC will employ a multiphase spending program for drilling, construction of buildings and production facilities, and equipment and labor to produce and transport oil from the area. The combine hopes to work in the area for 50 years and produce oil for 46 of those years.
TPC partnership interests are Texaco and Exxon 30% each and Amoco and Norsk Hydro 20% each.
"This working partnership is designed to seize upon what appears to be an enormous opportunity," said Texaco Senior Vice Pres. Peter I. Bijur. He called the operation "one of the most challenging, attractive hydrocarbon development prospects in the world."
Bijur also said, "Further successful development of Timan Pechora, with its lack of infrastructure, severe climate, complex geology, and unique environmental constraints will require significant proficiency under adverse conditions..."
Texaco was chosen by Arkhangelskgeologia in 1990 to conduct a feasibility study of oil production from the contract area. After completion of the study in 1992, Texaco signed a protocol agreement covering terms of the PSA with Arkhangelskgeologia and the Nenetsky Autonomous Okrug, the local government.
OTHER ACTIVITY
In addition to the Timan Pechora project, Texaco is involved in two other upstream projects in Russia: a well workover program begun last year in Sutormin oil field of western Siberia, presently producing about 16,000 b/d; and, along with Mobil Corp., an agreement to negotiate for an exploration and production block off the Sakhalin Islands.
Exxon is conducting a number of technical studies in the Timan Pechora region under other agreements.
Hydro said Russia is one of its preferred areas for international oil exploration and production.
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