The European Commission is considering sending a task force to study oil production in Russia's Tyumen province.
Its findings would enable EC to advise first on exploration and production improvements, then on organization and restructuring and regional development.
The task force idea, which sets out a narrow regional plan rather than a broad approach, is seen as the best way to get E&P recovery started. Tyumen was chosen because it accounts for 70% of Russian oil production.
E&P problems identified by EC include rising costs as easily recoverable reserves are depleted and more challenging areas are developed and the use of inappropriate techniques, such as waterflooding, to deplete reservoirs.
The pipeline network shows Soviet research to have been good, but its operation and maintenance are weak. Reliability is questionable in many parts of the network.
More than half of the refineries in the C.I.S. were built before 1970. Only 55% of products is medium and light products, while the figure for western refineries is 75%. As demand for light products grew in the 1980s, the Soviets had to run more crude and thus produce more heavy fuel oil. Demand for this was then diminishing as gas began to replace oil in industry and power generation.
Two general studies are in progress by EC. One is examining upgrades in selected refineries, the other logistics and flow balance in the pipeline network to identify restraints.
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