Gazprom Neft improves efficiency in developing the Priobskoye field together with DeGolyer and MacNaughton Corp

Press-release Technology Partnership

Gazprom Neft has entered into an agreement with American corporation DeGolyer and MacNaughton Corp. on the selection and utilisation of innovative enhanced oil recovery (EOR) techniques at its Priobskoye field, in a document signed at this year’s St Petersburg International Economic Forum by Vadim Yakovlev, First Deputy CEO, Gazprom Neft, and Martin Wiewiorowski, Director of D&M’s Russian Branch.

Under this agreement DeGolyer and MacNaughton specialists will, throughout 2018–2020, analyse the history of the Priobskoye field since its discovery, assess the potential for increasing production and increasing the oil recovery factor (ORF), formulate recommendations for realising this potential, and address immediate challenges and problems in developing the Yuzhny (Southern) licence block at the Priobskoye field. On the basis of this data, plans for pilot works and further geological prospecting at the asset will be put in place.

In addition to this, the process of analysing the appropriate cutting-edge technologies to be used will be initiated, and alternative approaches to solving field development problems developed. A programme for the further professional development of Gazprom Neft specialists will also be put in place.

According to Gazprom Neft specialists, the full implementation of programmes developed under the agreement with D&M will allow reserves at the Priobskoye field to be brought into development, will enhance oil recovery through existing well stock, and will increase the ORF by five to six percent.

DeGolyer and MacNaughton plans to open an office in St Petersburg in 2018 in order to undertake implementation of this project.

Vadim Yakovlev, First Deputy CEO, Gazprom Neft, commented: "Gazprom Neft has been working with DeGolyer and MacNaughton for more than 10 years. The unique competencies accumulated by the company during annual reserves audits has become a key component in our joint project to study the potential of the Priobskoye field, initiated in 2016. I have every confidence that this new agreement will allow our companies to further strengthen their cooperation and, ultimately, significantly improve efficiency in developing one of our largest production assets."

Reference

As one of the leading independent consulting firm focused on the petroleum industry, DeGolyer and MacNaughton provides unbiased and informed answers to clients worldwide. D&M skilfully blends energy economics, engineering, and the earth sciences to help clients in more than 100 countries make the smartest decisions regarding exploration, recovery, and management of oil and gas resources.

The firm’s services include resources assessments, reserves consulting, reservoir modelling, geologic and petrophysical analyses, development planning, guidance with financial reporting issues, and financial forecasting for petroleum discoveries. DeGolyer and MacNaughton has the largest, most experienced team of professional reservoir consultants in the industry. D&M has built up extensive international experience in independent reserves assessments, the results of which are frequently used in certifying projects for presentation to financial institutions worldwide.

Gazprom Neft is a vertically integrated oil company, primarily involved in oil and gas exploration and production, refining, and the production and sale of oil products. The Gazprom Neft’s corporate structure comprises more than 70 production, refining and sales subsidiaries throughout Russia, the CIS, and abroad.

The company’s proved and probable reserves (SPE-PRMS) are estimated at 2.78 billion tonnes of oil equivalent (btoe), making Gazprom Neft one of the top-20 largest oil and gas companies in the world, and one of Russia’s top three largest companies in terms of production and refining volumes. Total production in 2017 reached 89.75 million tonnes of oil equivalent (mtoe), with refining volumes of 40.1 million tonnes.

Gazprom Neft products are exported to more than 50 countries worldwide, and sold throughout the Russian Federation and abroad. The company’s filling station network totals more than 1,850 outlets throughout Russia, the CIS and Europe.

Gazprom Neft’s net profit in 2017 was RUB253 billion — a 26.5-percent increase year-on-year. The company is an industry market leader in terms of both financial growth and various efficiency metrics, including its internal rate of return (IRR).

The company’s main shareholder is Gazprom PJSC, which has a 95.68-percent interest, with the remaining shares in free circulation.