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Oil production at Gazprom Neft’s Prirazlomnoye field to increase almost two-fold

A revised production schedule for Gazprom Neft’s Prirazlomnoye field, recently approved by Russia’s Federal Subsoil Resources Management Agency (Rosnedra), has seen the field’s “peak” production period increased from three years to five. Sustainable drilling over this period means oil production will be increased by a factor of 1.8, to 23.1 million tonnes. New capacity and adjustments to certain aspects of production and transport infrastructure should see annual peak production volumes reach a total 4.8 million tonnes. The revised production schedule also envisages a 12-percent increase in total C1 and C2 reserves*, to 263 million tonnes — as a result of which the field’s productive lifetime is also increased, to 36 years.

This increase in oil-bearing acreage is the result of the reinterpretation of seismic data, confirmed by the State Reserves Commission. The peak-oil production period has been extended as a result of close analysis of accumulated data, leading to greater efficiency in field development and allowing the number of wells to be drilled to be reduced from 36 to 32 — giving the greatest possible scope in the selection of approved recoverable reserves, as well as improving project viability as a result of lower capital expenditure on drilling.

Gennady Lubin, General Director, Gazpromneft Shelf, commented: “The experience we have gained in working on Prirazlomnoye field has significantly improved efficiency in developing the field, and we are continuing to develop the first oil-production project on the Russian Arctic shelf.”

Notes for editors

* C1 reserves refer to “recoverable” or “proved” reserves (or part thereof) where commercial production volumes of oil or gas are deemed to be confirmed. C2 reserves refer to estimated or “inferred” reserves, where commercial production volumes have yet to be confirmed.

Initially discovered in 1989, the Prirazlomnoye oilfield is located in the Pechora Sea, 60 kilometres from the shore. Recoverable reserves are in the order of 70 million tonnes. Its development has required the installation of a the “Prirazlomnaya” offshore rig, designed for use in the most extreme climatic and environmental conditions, fully compliant with the latest safety standards, and able to withstand maximum ice-loads.

The Prirazlomnoye field is currently the only project on the Russian Arctic Shelf on which commercial oil production is ongoing. Drilling of the first well commenced in 2013, with the Prirazlomnaya offshore stationary ice platform commencing commercial production in December of that year. The new Russian oil blend produced here has been given the name “Arctic Oil (ARCO)” and the first consignments of this were despatched from the Prirazlomnoye field in April 2014.

A total 800,000 tonnes of oil were produced at the Prirazlomnoye field in 2015 — more than 2.5 times as much as in 2014. On which basis, total volumes despatched from the Prirazlomnoye field in 2014–15 reached 1.1 million tonnes.

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