Russia has disclosed more details on six large tracts in western Siberia included in a recently disclosed competitive licensing round.
Field development has begun in the Suzun and Lodochny-Tagul sectors. Gorchin-Taikin, Medvezhye, Tukoland-Vadinsk, and Turukhan-Makovsky blocks are strictly exploratory tracts. The six tracts cover more than 46,800 sq km in Russia's Taimyr and Krasnoyarsk regions.
A seventh tract, Vankora Sector III, is not offered in the licensing round.
Russia's Committee of Geology and Use of Mineral Resources (Roskomnedra), Taimyr (Dolgan-Nenets) Autonomous Okrug, and Krasnoyarsk Krai are sponsoring the competitive licensing round. Jebco Seismic Ltd., Houston and London, is acting as agent for the bidding round by translating, editing, and presenting geological and geophysical data released by Russian officials.
Deadline for applications to participate in the competitive round is july 31. Applications are to include 'a $2,000 licensing fee and 10% of the minimum signature bonus for the sector sought. For bidding groups with two companies the fee increases by 60%, with three companies by 110%, and with four or more companies by 140%.
Each bidding round applicant or applicant group is required to buy a data package of the areas on which it wishes to bid. Data packages for the Suzun and Lodochny-Tagul sectors sell for $125,000 and for the exploratory tracts $60,000.
The minimum signature bonus set for Suzun is $3 million and for Lodochny-Tagul $7.2 million. Minimum signature bonuses set for exploratory tracts are $1.5 million for Gorchin-Taikin, $500,000 for Tukoland-Vadinsk, $2 million for Medvezhye, and $4.5 million for Turukhan.
Required from qualifying bidders are full proposals, including work programs and technical and economic studies, by Oct. 15, including a proposed signature bonus. Companies offering the largest signature bonuses are to be declared winners of the bidding round.
ACREAGE OVERVIEW
Here are the sectors with field development:
- Suzun Sector II, covering 6,533 sq km, including Suzun field and the surrounding area in the Bolshaya Kheta river basin in Dudinka district of the Taimyr autonomous province, Krasnoyarsk territory. The Russian partner for joint development of Suzun field is to be Kheta Oil, a joint stock company majority owned by the Lower Yenisei state geological enterprise.
- Lodochny-Tagul Sector V covering 4,732 sq km, including Lodochny and Tagul fields and surrounding area. The possible Russian partner for joint development of Lodochny and Tagul fields is Yeniseineftegazgeologiya, a regional geological enterprise.
Oil and gas activity, as well as transportation and social infrastructure, are minimal on the exploratory tracts.
Turukhan-Makovsky Sector VII, with an area of 18,741 sq km, is by far the largest tract included in the tender. It lies north of Krasnoyarsk territory in the Igarka and Turukhan districts. Little exploration has been carried out in the area, but reservoirs with good porosity and permeability have been found in Mesozoic and lower Cretaceous zones.
Gorchin-Taikin Sector I, covering 6,720 sq km within the western boundary of Krasnoyarsk territory, and Medvezhye Sector VI, covering 8,116 sq km west of Lodochny-Tagul, have estimated hydrocarbon reserves of 346 million tons and 450 million tons, respectively.
A well is being drilled in Tukoland-Vadinsk Sector IV, a 2,040 sq km area along Krasnoyarsk territory's western boundary. The sector's estimated reserves are 10.9 million tons of oil, 222.6 billion cu m of gas, and 22.2 million tons of condensate. Those estimates are based on the prospectivity of adjacent areas.
FIELD GEOLOGY
Suzun Sector II, in the Pur-Taz region, includes the eastern margin of the Pendomayakha basin, Bolshaya Kheta megaswell, and Pakulikha monocline.
Suzun field recoverable reserves are estimated at 18.3 billion cu m of gas and 43.5 million tons of oil. Twenty-two wells have been drilled in the field to an average depth of 2,900 m. Oil flows of 44-278 cu m/day through a 10 mm choke were obtained in eight wells. Flow rates of an undisclosed number of gas tests varied from 120,000 to 250,000 cu m/day.
The developed gas-condensate fields nearest Suzun field are North Soleninsky and South Soleninsky, 100-130 km to the northwest. Solenaya-Norilsk gas and condensate pipeline pass 90-100 km north of the field, and there is a 50,000 ton/year condensate processing plant in Dudinka.
Lodochny-Tagul Sector V includes proved oil and gas reserves in Cretaceous Nizhnyara Kheta and Malaya Kheta, lower Cretaceous Yakovleva, and Cenomanian Dolgan sediments. The block is considered the most promising in the Pur-Taz oil and gas province.
Lodochny and Tagul fields lie in the Turukhansk region on the Lodochny and Tagul uplifts, respectively, in the southern Bolshaya Kheta megaswell.
Six deep wells in Lodochny field found commercial oil and gas volumes in lower Cretaceous zones. Lodochny field's recoverable reserves in November 1992 were estimated at more than 57 million tons of oil, 56.9 billion cu m of gas, and 3.1 million tons of condensate.
Eleven exploratory wells drilled in Tagul field found commercial oil and gas reserves in Yakovleva and Dolgan strata. Field reserves in November 1992 were estimated at more than 49 million tons of oil and more than 39.4 billion cu m of gas.
FIELD BIDDING PROCEDURE
To bid for a license to develop Suzun or Lodochny-Tagul sectors, companies by July 31 must submit an application specifying the tract on which they intend to bid.
The application must include basic data about the applicant. Also, the applicant must buy the appropriate package of geophysical data and pay the license fee and deposit. The application to bid must be followed by Oct. 15 by a technical and economic study of the bidder's proposed development plan. The amount of signature bonus offered is to accompany the study in a sealed envelope.
Competitive bidding for fields will occur in two stages. In the first, tender officials by Nov. 15 will select a group of final participants, based on criteria including:
- Technical and technological reliability and ecological safety of proposed development plans.
- Viability of proposed project economics, including funding conditions and profit share.
- Bidder's possible role in proposed solutions of Krai and Okrug social and economic problems.
- Technical and economic compliance with requirements of standard license agreement.
- Bidder's reputation and financial reliability.
Ultimate winning bidders are to be chosen from companies qualifying for the final bidding stage, based on the amount of signature bonus offered.
PROSPECT BIDDING PROCEDURE
Companies wishing to bid on an exploratory block also must apply by July 31. However, a panel of experts must grant the right to take part in prospect bidding within 15 days of the receipt of application to bid, based on a review of the applicant's qualifications.
Qualified prospect bidding participants by Oct. 15 must submit in sealed envelopes the proposed:
- Volume of cost recovery oil, to a maximum of 75%.
- Size of royalty, with the minimum set at 6%.
- Share of profit oil to be received by the host country, but at least 51%.
- Prospecting and exploration program.
- Amount of signature bonus.
Companies qualifying for the second prospect bidding stage are to be first stage participants submitting bids most favorable to the Russian side.
Ultimate winners of licenses to explore and develop prospect blocks are to be the companies offering the largest signature bonuses.
Signature bonuses offered both for field and prospect licenses will be opened at an open meeting of tender officials. In case of ties, winners are to be determined by open bidding procedures.
Field development licenses are to be awarded within 15 days of registering the enterprise. Prospect block licenses are to be granted within 30 days of the announcement of winners.
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