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RUSSIAN JOINT VENTURE EXPORTS FIRST OIL

March 9, 1992

Just 2 months after approval, the Russian-Canadian-British joint venture KomiArcticOil has exported its first oil. Initial production of about 5,000 b/d is from Upper Vozey field north of the Arctic Circle, where the venture began putting on line 43 wells that were in various stages of drilling or completion (OGJ, Dec. 23, 1991, p. 19). Production is expected to climb to 20,000 b/d the next 2-3 years during the first phase of the seven phase project.

Just 2 months after approval, the Russian-Canadian-British joint venture KomiArcticOil has exported its first oil.

Initial production of about 5,000 b/d is from Upper Vozey field north of the Arctic Circle, where the venture began putting on line 43 wells that were in various stages of drilling or completion (OGJ, Dec. 23, 1991, p. 19). Production is expected to climb to 20,000 b/d the next 2-3 years during the first phase of the seven phase project.

Oil moves by pipeline from the field to a terminal on the Black Sea, crossing only the Russian republic, a fact that has made the entire project less complicated, says John Sparks, spokesman for venture partner Gulf Canada Resources Ltd., Calgary.

Getting Upper Vozey field on line is one of two projects planned for the joint venture's first phase. The other is an enhanced oil recovery pilot project in Vozey field.

The EOR pilot will be part of phase one, Sparks said, but not the main focus. It may have bigger ramifications later, he noted, depending on results of the pilot project.

KomiArcticOil is held 50% by the Russian government with Gulf Canada and British Gas plc holding 25% interest each.