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Messoyakhaneftegas implementing unique project in APG utilisation

Glavgosekspertiza Russia has approved plans from Messoyakhaneftegaz, the Gazpromneft—Rosneft joint venture, to build a series of cluster pads for the reinjection of associated petroleum gas (APG) at its Zapadno-Messoyakhskoye field, together with an intra-field gas pipeline connecting the neighbouring Vostochno-Messoyakhskoye field. This project, which will involve APG being stored in the gas cap of the neighbouring Zapadno-Messoyakhskoye oil and gas condensate field, will be unique in the oil and gas industry.

The project will involve the company building all necessary infrastructure at two license blocks: a 1.5-billion cubic metre per year-capacity compressor station at the Vostochno-Messoyakhskoye field, and two cluster pads (each comprising nine APG-reinjection wells) at the Zapadno-Messoyakhskoye, with the two fields connected by a 54-kilometre intra-field pipeline for transporting the compressed gas.

Implementing this project will allow Messoyakhaneftegaz to use the available APG as effectively as possible. APG obtained in oil production at Messoyakha is already being used to meet the technological needs of production — running a gas turbine power plant (GTPP) as well as being used as fuel for oil heating and boilers. The transportation and subsequent reinjection of APG from Vostochno Messoyakha into the gas cap at the neighbouring Zapadno Messoyakhskoye field will allow the gas to be used, from underground storage, in the future. Implementing this project at Vostochno Messoyakha directly — i.e., at the field at which oil production is ongoing — is not possible due to its geological structure: it has no deposits or blocks with the appropriate characteristics for storing large volumes of gas.

Denis Sugaipov, Head of Gazprom Neft’s Upstream Major Projects Directorate and CEO, Gazpromneft-Razvitiye, commented: “The APG-utilisation project at Messoyakha will be a unique one for the company. For the first time, we’ll be using so-called ‘underground storage’ in addressing the question of APG utilisation. This is a new practice for the company and, assuming it’s successful, we’ll be able to roll-out this technology to other businesses.”

Victor Sorokin, CEO, Messoyakhaneftegaz added: “APG utilisation is a major priority for any upstream enterprise. Building this underground APG storage facility and gas infrastructure facilities will allow optimum performance in APG usage as well as creating the opportunity of implementing a project unique to Russia, with considerable significance for the environment.”

Domestic equipment and facilities are expected to be used in gas treatment and processing, with all infrastructure being built through modular assembly for maximum operational readiness, ensuring fast construction as well as optimising general project profitability. The project is expected to be implemented in two and a half years.

Notes for editors

Messoyakhaneftegaz is a joint enterprise between Gazprom Neft PJSC and Rosneft holding subsoil usage rights for exploration and production at the Vostochno-Messoyakhskoe and Zapadno-Messoyakhskoe fields.

The field is considered unique in terms of its proved reserves. The project is being implemented with very limited access to industrial and transportation infrastructure. President of the Russian Federation, Vladimir Putin, gave the instruction to commence commercial production at the field via video link on 21 September 2016.