Alexander Ananenkov took part in the meeting on hydracarbon development prospects in Eastern Siberia and the Far East
On February 18, the RF Natural Resources Ministry conducted in the city of Yakutsk a meeting dedicated to the hydrocarbon development prospects in Eastern Siberia and the (Russian) Far East. Gazprom’s delegation headed by Alexander Ananenkov, Deputy Chairman of the Company’s Management Committee, specialists from prospecting companies, research organizations, oil and gas production companies, representatives from the regional and central bodies of the RF Natural Resources Ministry as well as authorities of Russian oil and gas production regions, attended the meeting.
The goal of the meeting was to coordinate prospecting works and to enhance their geological effectiveness within the Draft 2004–2020 state program on comprehensive oil and gas exploration and development in Eastern Siberia and the (Russian) Far East.
Presenting his report, A. Ananenkov pointed out that newly established large gas and oil production centers were in compliance with Russia’s national interests. Within the next 10–15 years, these centers will allow Russia’s eastern regions to meet economic and social challenges they are facing nowadays and will eliminate the risk of potential regional and local energy crises. “The Siberian and Far Eastern gas production prospects will enable these regions to satisfy their natural gas needs within the nearest 20–30 years, provide gas deliveries to the United Gas Supply System and organize gas exports to Asia Pacific given sufficient gas demand”, – stressed A. Ananenkov.
Gazprom’s main interests in eastern Russia are largely linked to the hydrocarbon development in the Republic of Sakha (Yakutia), the Irkutsk, Sakhalin and Krasnodar regions. A. Ananenkov underlined the need to take a comprehensive approach for developing oil and gas resources concentrated in these regions. By maintaining such an approach, Gazprom will be able to determine the field development sequence and timing with implication for all the factors, including the current situation on and development prospects for the Russian gas market, extension rates of the United Gas Transportation System in eastern Russia and prospects for gas exports to Asia Pacific.
A. Ananenkov paid special attention to licensing, which should be aimed to grant exploration and operating licenses, primarily, to those companies that would implement national policy pursuing hydrocarbon exploration and development in East Siberia and the Far East.
For this purpose, the region’s basic fields, primarily, the Chayandinskoye and Kovytkinskoye ones, need to be added to the list of fields representing strategic significance for the RF gas supply system under the RF federal acts on “Natural Resources” and “The RF Gas Supply System”.
“Gazprom’s active production policy would mean for the economy of eastern Russia additional hydrocarbon resources involved in the domestic fuel balance, improved living conditions of its population, soaring industry growth, budgetary tax payments, additional job vacancies and sustainable power supplies,” – stated A. Ananenkov.
The participants largely approved the exploration and development prospects for the East Siberian and Far Eastern fields. As it was pointed out, the program implementation was one of the important elements of Russia’s energy strategy for the period up to 2020 as oil and gas potential enhancement of eastern Russia would ensure long-term and sustainable economic and energetic development of the region and would stabilize the regional power generation and consumption in Russia, as a whole.
The meeting also expressed a unanimous opinion on the need to enact certain legislature bolstering the investment attractiveness of the program. The parties referred, primarily, to establishing a fiscal regime spurring exploratory activities and assignment of rights to further develop hydrocarbon reserves, in case of the new field commissioning.
The initial combined onshore gas reserves of Eastern Siberia and the Far East account for 44.8 tcm (some 19% of Russia’s total initial combined gas reserves), including 32.9 tcm in Eastern Siberia and 11.9 tcm in the Far East.
49 oil and gas fields have been discovered in Eastern Siberia and the Far East, including the following largest ones:
- Kovytkinskoye gas condensate field (1.9 tcm of gas reserves);
- Chayandinskoye oil and gas condensate field (1.2 tcm of gas reserves);
- Yurubcheno-Tokhomskoye and Sobinsko-Payginskoye oil and gas condensate fields (277.5 bcm of combined proved gas reserves).
Given the favorable development conditions, the region’s resource base will allow Russia to achieve promising gas production indices (envisaged by the country’s energy strategy) of 50 bcm by 2010 and 110 bcm by 2020. Given the moderate and low development rates, the same indices are to average 55–95 and 25–30 bcm of gas per annum, respectively.
The poorly developed East Siberian and Far Eastern gas potential (some 8.3%) promises big prospects for exploration of new fields, followed by the large-scale gas production in the region. This fact predetermines the need to foster prospecting and elaborate an integrated program aimed to search for oil and gas fields.
The forecasted growth of explored reserves for the period of 2004–2030 will amount to about 6.1 tcm of gas. Total amount of funds to be allocated for prospecting purposes, including seismic survey, is expected to total USD 7.3 billion.
Krasnoyarskgazprom, a Gazprom’s Krasnoyarsk Region-based subsidiary, holds 3 licenses to conduct geological survey of the Beryambiysky area and to explore and develop hydrocarbon resources of the Omorinsky and Sabinsky areas.
Gazprom holds 2 licenses due 2008 to explore the Irkutsk Region-based western and eastern Uzhno-Kovytkinsky areas.
Gazprom’s major partners in the development of the East Siberian and Far Eastern fields are Rosneft and Surgutneftegaz.
Information Directorate, OAO Gazprom