The Prirazlomnoye oil field is located in the Barents Sea offshore. The license to explore and produce hydrocarbons in the field is owned by Sevmorneftegaz, a 100 per cent Gazprom subsidiary.
Prirazlomnoye's recoverable oil reserves account for 46.4 mln t enabling to achieve an annual production level of some 6 mln t.
Project Significance
Developing the hydrocarbon potential of the Arctic offshore is a fundamentally new evolution stage for Russia's fuel and energy mix in the 21st century. According to projections, initial in-place hydrocarbon reserves of the Russian continent shelf amount to some 90 btoe, of which over 60 btoe is concentrated in the Barents and Kara Seas, with the bulk, 76 tcm, being in the form of gas.
Establishing a new gas production province in Russia based on Arctic offshore fields and taking into operation oil deposits will contribute to stronger positioning of Gazprom as a multi-profile world-class energy company.
The Gazprom Operating Concept for the Russian Federation Offshore contemplates maintaining a comprehensive approach towards the development of the Barents, Kara and Pechora Sea fields. The comprehensive approach hinges on the development of closely located groups of deposits, which enables to optimize costs and creates the conditions for the development of large and relatively small offshore fields.
Prirazlomnoye's development is in this connection a topicality for Gazprom since the infrastructure being created for the project purposes will serve as the basis for subsequent exploitation of hydrocarbon resources in the Barents and Kara Seas.
Development Specificity for Oil and Gas Fields in Regions with Cold Climate
All continental shelf development projects are technically complex and require applying state-of-the-art technologies and attracting prominent financial resources.
The major technical challenges to be met during the development of Russia's Arctic shelf are as follows:
- performing a reliable analysis of ice data within the shortest period possible so as to identify extreme loads;
- performing a realistic analysis of ice loads on offshore installations;
- selecting optimal field development models and hydrocarbon treatment technologies;
- selecting optimal hydrocarbon transmission and storage methods;
- selecting optimal methods of work
- Any activity related to offshore developments, including the selection of technologies for project execution purposes, should comply with environmental requirements, use the latest technological achievements and ensure safety & security, economic efficiency and high social responsibility.
History and Current Status
In January 2007, Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee conducted at the Company's Headquarters a meeting dedicated to the Prirazlomnoye oil field project implementation. The meeting was attended by heads and specialists of Gazprom's core business units, Sevmorneftegaz, Gazflot, Sevmashpredpriyatiye and Morneftegazproekt.
The participants discussed the major construction technologies for Prirazlomnoye's infrastructure and put an emphasis on the use of the research potential and operating capabilities of leading Russian companies. The major development target would be the Prirazlomnaya marine sleet-proof stationary platform being constructed by Sevmashpredpriyatiye, a ship-building leader in Russia.
Summing up the meeting results, the participants outlined measures with regard to the construction of Prirazlomnaya in 2007 and a subsequent period preceding the Prirazlomnoye's development startup. The relevant core business units were tasked with preparing proposals on a marine transportation and technological system for Prirazlomnoye and with continuing the work to obtain land in the Varandey village and construct a transshipment terminal.
In September 2005, the Management Committee approved the major provisions of the Gazprom Exploitation Program for the Russian Federation Offshore Hydrocarbon Resources up to 2030. The Program had been developed in compliance with the Management Committee's November 27, 2003 Directive as regards the Gazprom Operating Concept for the Russian Federation Offshore. The Program pursues the objective of underpinning the strategic directions of Russia's offshore hydrocarbon field development.
In March 2005, furthering the interests of Gazprom, Gazprombank purchased from Rosneft a 49.95 per cent stake in a project aimed at developing the Arctic shelf of the Barents and Pechora Seas and a 26 per cent stake in Rosshelf, with a 50 per cent stake acquired from Rosneft-Purneftegaz in Sevmorneftegaz. Thus, all ownership rights for Prirazlomnoye were conveyed to Gazprom and the Company started independently implementing programs in relation to that project.
In November 2003, The Management Committee approved the major provisions of the Gazprom Operating Concept for the Russian Federation Offshore. The Concept stipulates establishing the Shtokman, Ob-Taz and Yamal gas production provinces as well as the Pechora oil & gas production province. The Concept execution will enable to extract in the above provinces more than 170 bcm of gas and 20 t of oil starting from 2030. In future, gas production will be increased to 250–300 bcm per year.
In August 2003, Alexey Miller, Chairman of the Gazprom Management Committee and Sergey Bogdanchikov, President of Rosneft discussed in Moscow the development progress and prospects for Sevmorneftegaz. In particular, the parties underscored that Sevmorneftegaz had successfully effectuated a number of technologically sophisticated operations, including a unique for Russia operation embracing the transportation of the upper deck of the Prirazlomnaya offshore ice-resistant oil-producing platform to Severodvinsk.
In October 2001, Gazprom and Rosneft signed the Agreement for the Joint Development of the Prirazlomnoye and Shtokman Fields. To implement the Agreement, the parties created the 50/50 joint venture Sevmorneftegaz holding the licenses for the said fields.