Yuzhno-Russkoye field

Testament to efficient Russian-German cooperation

The development of the Yuzhno-Russkoye oil, gas and condensate field is a testament to efficient Russian-German partnership aimed at achieving sustainable energy security in Europe. The project, which is based on asset swap deals and covers the entire value chain from production to end use, helps strengthen Gazprom’s position as a global energy market player.

Gazprom is consistent in pursuing the policy of boosting production capacities

Gazprom is consistent in pursuing the policy of boosting production capacities

Figures and facts

The Yuzhno-Russkoye field was discovered in 1969 in the Krasnoselkupsky District of the Yamal-Nenets Autonomous Area.

Its АВС1+С2 reserves exceed 1 trillion cubic meters of gas and 50 million tons of oil and gas condensate. Around 85 per cent of its total reserves are accumulated in the Cenomanian and Turonian deposits and the remaining 15 per cent in the underlying rock layers.

The field’s annual design capacity is 25 billion cubic meters of gas.

The project is operated by Severneftegazprom, whose shares are held by Gazprom (40 per cent) and the subsidiaries of BASF (Wintershall Holding – 35 per cent) and E.ON (Uniper Exploration & Production – 25 per cent).

Yuzhno-Russkoye oil and gas field

Yuzhno-Russkoye oil and gas field

The key benefit of foreign participation in Severneftegazprom is that Gazprom acquired promising assets in exchange. As a result of the asset swap with Germany’s BASF, Gazprom increased its stake in WINGAS, a joint venture focused on natural gas marketing, and obtained a stake in Wintershall’s gas production subsidiary engaged in the development of two blocks in Libya. Thanks to the asset swap with E.ON Ruhrgas, Gazprom managed to consolidate 2.95 per cent of its own shares previously owned by the German company.

Development

In 2004, the field development plan was prepared, outlining the commissioning procedure with the use of project financing. Field pre-development started in January 2006. Yuzhno-Russkoye was put onstream on August 25, 2007, and brought to its design capacity in August 2009.

Comprehensive gas treatment unit at Yuzhno-Russkoye oil, gas and condensate field

At present, the Cenomanian deposits are under commercial development and the Turonian deposits are under pilot development.

Technologies

The infrastructure of Yuzhno-Russkoye is highly advanced in terms of technological and engineering solutions. Among other things, the development techniques for hard-to-recover Turonian gas reserves are being tested as part of the project

The Turonian deposits are lying above the Cenomanian deposits at the depth of 800 to 850 meters. They are characterized by heterogeneous and changeable lithology and low permeability. The composition of Turonian gas is almost identical to that of Cenomanian gas, with the methane content of around 99 per cent and no heavy impurities. The development of the Turonian deposits in the Yuzhno-Russkoye field is the first such project for Gazprom and Russia in general.

Environment and responsibility

The environmental strategy of Severneftegazprom is aimed at preventing environmental pollution and mitigating environmental impacts from production activities to the maximum extent possible. To that end, the company maintains its production equipment in an impeccable condition and carries out environmental protection measures.

Severneftegazprom is a socially responsible company that cares about the inhabitants of the areas adjacent to the Yuzhno-Russkoye field. The company implements large-scale social investment programs and provides financing to upgrade the infrastructure of municipal educational, cultural and youth institutions.