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Gazprom Neft to Set Up Preparations to the Cenomanian Gas Reservoir of Muravlenkovskoye Field Development

Gazprom Neft has set up preliminaries on the Cenomanian gas reservoir of Muravlenkovskoye oil and gas field development design implementation (YaNAO, Purovskiy District).

Engineering surveys at the field have already been completed; gas pipeline route and site objects are approved. Current operations cover preparation of design documentation, execution of land use licenses, as well as pre-contract elaboration and equipment supply timing. The field is scheduled for commissioning in IVQ2010.

By now, Gazprom Neft Management Board has approved the scheme of Senomanian gas field reservoir development, which allows reaching the highest project efficiency indicators including capital investments best value (investment yield makes RUR2.3 per RUR1.0 of capital investments) with the shortest payback period of 4.3 years.

The project anticipates to reach a peak gas production level (“plateau rate”) in the volume of 3 bln. cubic meters within continuous extraction period. Twenty wells, including 17 producing and 3 observation wells, are required to achieve the projected gas production level. Besides, a system of gas extraction, a gathering station for gas transportation preparation and a gathering pressure gas line of over 80 km long are planned for construction at the field.

Chairman of Gazprom Neft Management Board Alexander Dyukov stated:

“Muravlenkovskoye field’s well stock test trials proved our optimistic forecasts in view of increase of the Company’s gas production. In the long view, buildup of gas production will allow including gas into the bottom-line production performance of the Company. In coordination with Gazprom, we see our strategic target in reaching gas production of up to 10 BCMPA by as early 2010. Should we roughly convert this figure into some “hypothetical fuel equivalent”, it will add about yet another 10 mln. tons to the Company’s aggregate hydrocarbons production index.”

Notes for editors

Muravlenkovskoye oil and gas field is located within the territory of Purovskiy District in YaNAO.

Following the results of new exploration wells drilling and test trials, in 1990 the initial natural gas reserves of the Cenomanian reservoir of Muravlenkovskoye field were recalculated as compared to the initial estimates: C1 gas reserves were estimated at 54.442 cubic meters.