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Gazprom Neft discusses an integrated approach to developing Yamal with the Government of the Yamalo-Nenets Autonomous Okrug

Government of the Yamalo-Nenets Autonomous Okrug (YNAO) has held a working meeting involving Governor Dmitry Artyukhov and First Deputy CEO Gazprom Neft Vadim Yakovlev to discuss the region’s collaboration with the company under the terms of their bilateral cooperation agreement.

Meeting of the strategic commission for the development of Yamal, including a Gazprom Neft delegation and representatives from the Government of the Yamalo-Nenets Autonomous Okrug, 22.10.2018, in Salekhard

Gazprom Neft is now actively involved in the commercial development of the Arctic, with approximately 27 percent of the company’s total oil production being located in Yamal’s oil and gas condensate fields. A range of key projects have been undertaken in the Arctic in recent years — including the discovery and development of the Novoportovskoye, Prirazlomnoye, and Messoyakhskoye fields. Essential hydrocarbon production and transportation infrastructure has been put in place, and a system ensuring year-round maritime oil shipments organised. Cutting-edge drilling and production technologies are being utilised to ensure the effective development of the region’s hard-to-recover reserves. Gazprom Neft has a further series of major hydrocarbon production projects currently undergoing pre-commissioning works, which are expected to turn Yamal into a key production cluster for the company in the next five to seven years.

Representatives from Gazprom Neft and the Government of the YNAO also took the opportunity of the roundtable meeting to discuss plans regarding two current major projects — the Novoportovskoye and Messoyakhskoye fields. The company expects production at Novy Port to increase 20-percent year-on-year — meaning that, since oil production in 2017 totalled 5.9 million tonnes, this figure will increase to seven million tonnes of crude in 2018, with the project expected to reach target capacity after 2019, at approximately eight million tonnes of oil per year. Investment in the Novoportovskoye field and related projects is expected to reach approximately RUB400 billion in the next five years.

The company is not just involved in developing oil and gas condensate fields in Yamal, but is also proactively involved in geological prospecting. Extensive activities on the company’s resource base, including the selection of effective solutions for exploratory and development drilling, are making it possible for Gazprom Neft to consistently increase its reserves in the region — as was the case in September 2018, when an oil and gas reservoir was discovered at the Zapadnoy Messoyakha field, with reserves in place estimated at 85 million tonnes. Twenty six million tonnes of this is believed to be recoverable, equivalent to the volumes found at standalone hydrocarbon deposits and confirming the considerable potential of the northern group of Yamal fields. Messoyakhaneftegaz, which holds the licence to develop this block, plans to rely on cutting-edge technologies, already proven in their use at hard-to-recover reserves at the Vostochno-Messoyakha field, in its subsequent development of the Zapadno-Messoyakhskoye field.

The company is also involved in implementing a programme directed at preserving biological diversity and sustainability in commercial fishing. The working meeting included a discussion on the possibility of a long-term partnership between Gazpromneft-Messoyakha (operator of the Novoportovskoye field) and the Sobsky Fish Farm — the only organisation in the YNAO involved in fish farming, and which manages the release of fish fry into the main waterway of the Urals Federal Okrug — the River Ob. Gazpromneft-Yamal has released 17 million fish fry into the waters of the Ob Basin over the past two years, with a further seven million due to be released in 2019. This initiative to replenish biological aquatic resources represents the company’s contribution to restoring the natural environmental balance of the YNAO, which it makes every year.

A further corporate social responsibility (CSR) initiative from Gazprom Neft in Yamal was also announced during the meeting — the planned construction of a gas supply system to the Novy Port settlement. Thanks to this project, residential housing and communal facilities will now be supplied with heat, with the project expected to be completed in 2022.

Vadim Yakovlev, First Deputy CEO, Gazprom Neft, commented: «The Artic is, today, one of the most promising — and one of the fastest developing — hydrocarbon production regions, for Russia and for the wider fuel and energy industry. Of course, the challenges we face here — harsh climatic conditions, absence of infrastructure, and complicated logistics — are pretty serious. But, as our experience has shown, we are successfully overcoming these difficulties and are achieving the strategic objectives we have set ourselves.»

Dmitry Artyukhov, Governor, Yamalo-Nenets Autonomous Okrug and Vadim Yakovlev, First Deputy CEO, Gazprom Neft, 22.10.2018, in Salekhard

Dmitry Artyukhov, Governor, Yamalo-Nenets Autonomous Okrug, added: «These new projects are gaining momentum. We were literally discussing these, as a concept, in August, and we are now, already, seeing real progress. Gazprom Neft is actively involved in Yamal — which is definitely home to the company — and we are very glad to see its success. These represent very progressive, forward-looking solutions, and very active social support for all our initiatives. Together we are putting in place a whole range of excellent social facilities. Proactive cooperation is a byword in developing Yamal».