Calgary firm eyes Black Sea coast field

Black Sea Energy's Project [27076 bytes] A Canadian firm has joined forces with Russia's Krasnodarneftegaz, a unit of state-owned Rosneftegaz, to increase production in a large oil field near the Black Sea in southern Russia.

Sept. 30, 1996

2 min read

Black Sea Energy's Project [27076 bytes]

A Canadian firm has joined forces with Russia's Krasnodarneftegaz, a unit of state-owned Rosneftegaz, to increase production in a large oil field near the Black Sea in southern Russia.

Calgary-based Black Sea Energy Ltd., a privately held independent focusing on opportunities in the Commonwealth of Independent States (C.I.S.), will take a 50% interest in rehabilitating Anastasievsko-Troistkoye oil field. An estimated 190 million bbl of oil in place remains in the field, according to a report by Adams-Pearson Associates Inc. Of the total, about 53 million bbl are estimated to be recoverable by the joint venture.

The field, connected by pipeline to Russia's primary oil export terminal at the Black Sea port of Novorossiisk, 65 km away, has 1,400 oil wells available for rehabilitation.

The Canadian firm plans to increase output to 26,000 b/d from the current rate of 12,000 b/d with advanced well completion technology and horizontal reentry drilling.

The project will require $10 million for initial capital and operating costs. Black Sea Energy expects the project to become financially self-sufficient after about 1 year, according to project finance director Glynn Davies.

The joint venture received approvals from authorities in Krasno- dar and Moscow. Work is slated to begin later this year.