The Gazprom Neft Board of Directors considers the long-term development of the Orenburg oil-production cluster

Press-release Technology Efficiency

The Gazprom Neft Board of Directors has reviewed the long-term outlook for developing its Orenburg oil-production cluster, together with information on synchronising the development of the company’s production facilities with transportation, oil and APG (associated petroleum gas) processing capacity owned by Gazprom PJSC.

The company established this new liquid-hydrocarbon production cluster in 2011, based around its Gazpromneft-Orenburg plant, currently developing oil reserves in the eastern licence block of the Orenburg oil and gas-condensate field (the ONGKM). Over the course of several years Gazprom Neft has, through asset acquisitions and success in open acreage subsoil licensing rounds, created a major new oil production centre in the Volga—Ural region which, in addition to the Orenburg oil and gas condensate field, also includes the Tsarichanskaya and Kapitonovskaya groups of fields.

In the space of six years Gazpromneft-Orenburg has significantly built up its resource base and expanded its production infrastructure, with annual production volumes increasing from 400,000 tonnes of oil equivalent (toe) in 2011 to 4.8 million tonnes of oil equivalent (mtoe) by the end of 2017. Added to which, Gazprom Neft’s assets in the Orenburg Oblast have significant potential for production growth, with Gazpromneft-Orenburg’s total recoverable ABC1+C2 reserves as at early 2018 standing at 193.2 mtoe, and total recoverable gas reserves at 75 billion cubic metres.

The outlook for production growth at Gazpromneft-Orenburg’s current assets is largely connected to the implementation of the infrastructure development programme. All three of the company’s current production centres in the region — the eastern block of the Orenburg oil and gas condensate field, and the Tsarichanskaya and Kapitonovskaya groups of fields — are integrated with the Gazprom PJSC infrastructure system. The commissioning of major engineering facilities in 2016 allowed deliveries to commence from the Tsarichanskaya group of fields to the Gazprom Neftekhim Salavat plant.

A significant proportion of associated petroleum gas (APG) in the products extracted led to the construction of a pipeline in the eastern block of the Orenburg oil and gas condensate field, allowing hydrocarbons to be transported from the field to the Orenburg gas treatment plant. Thanks to this facility being commissioned in 2017, gas usage at the field increased by 12 percent on 2016. The commissioning of new facilities at the eastern block of the Orenburg oil and gas condensate field in 2018 will eliminate practically all infrastructure limitations on increasing production. The oil produced at the Kapitonovskaya group of fields will undergo treatment at the Kapitonovskoye field oil treatment facility and be shipped to customers by rail, while APG will be fed into a single gas supply system.

A further new actively developing area of activity for Gazpromneft-Orenburg concerns the study of Domanic reserves — unconventional hydrocarbon reserves in compact shale deposits, the inferred resources of which across the entire stratification stand at one billion tonnes of oil.

The long-term development of Gazprom Neft’s Orenburg production cluster depends on the resolution of challenges such as expanding the company’s resource base and its presence in the region, improving efficiency and technology in field development, and acquiring skills and competencies in working with hard-to-recover and unconventional reserves.