Significance
The Yuzhno-Russkoye field development is an example of efficient Russian-German partnership aimed at providing sustainable energy security in Europe. Based on asset swap and entire chain development from production to ultimate consumer, the project enhances Gazprom’s stance of a global player on the energy market.
Location
The Yuzhno-Russkoye oil and gas field is located in the Krasnoselkupsky District of the Yamal-Nenets Autonomous Okrug.
Reserves
The Yuzhno-Russkoye field ABC1 reserves amount to 833.5 billion cubic meters of gas, C2 reserves – 180.9 billion cubic meters of gas and 20.35 million tons of oil and gas condensate.
Project operator
The field exploration and development license is owned by Severneftegazprom, which shareholding is split among Gazprom, BASF and E.ON Ruhrgas.
In 2007 Gazprom and BASF AG made an asset swap deal enabling Gazprom Group to increase its stake in the authorized capital of WINGAS GmbH up to 50 per cent minus one share. Meanwhile, BASF AG acquired 25 per cent minus three ordinary registered shares and plus three preference non-voting shares in the authorized capital of Severneftegazprom. Gazprom Group also acquired a 49 per cent stake in the authorized capital of Wintershall AG (license holder for hydrocarbons development and production in Libya under concession agreements).
Jurgen Hambrecht (BASF AG) and Alexey Miller (Gazprom) signing certificate on asset swap deal
In October 2009 Gazprom and E.ON AG closed the asset swap deal. As a result of the deal, E.ON AG acquired a 25 per cent stake minus three ordinary registered shares plus three preference non-voting shares in Severneftegazprom. Gazprom, on its part, acquired a 49 per cent stake in Gerosgaz which owns 2.93 per cent of Gazprom shares, thus transferring the full ownership of these shares to Gazprom.
Field commissioning
In October 2007 the start-up complex of the field was put into operation.
On December 18, 2007 the ceremony dedicated to the commercial launch of the Yuzhno-Russkoye field took place in the presence of Dmitry Medvedev, First Deputy Prime Minister of the Russian Federation, Chairman of the Gazprom Board of Directors, and Frank-Walter Steinmeier, Vice Chancellor, Minister of Foreign Affairs of Germany.
Yuzhno-Russkoye field commissioned (from right to left: Dmitry Medvedev, First Deputy Prime Minister of the Russian Federation, Chairman of the Gazprom Board of Directors; Frank-Walter Steinmeier, Vice Chancellor, Minister of Foreign Affairs of Germany)
Design capacity
In August 2009 the annual design capacity of 25 billion cubic meters per year was reached one year ahead of schedule, due to an increase in the number of production wells up to the projected level (142 wells).
Current status
Geological exploration of the field is ongoing. Work is underway to increase the production well stock and to develop the infrastructure.
In October 2009 the Federal Subsurface Use Agency took a decision to extend the effective period of the License for geological survey and hydrocarbons production from the Yuzhno-Russky block until December 31, 2043.