17/05/2017

Press release: Gazprom Neft’s investigation of the Bazhenov Formation is awarded the status of a national project

The Ministry of Energy of the Russian Federation has approved Gazprom Neft’s application for its project on “Developing Domestic Technologies and High-technology Equipment to Develop Reserves at the Bazhenov Formation” to be awarded the status of a national project. This state-sponsored project envisages the development and implementation of technologies for geological prospecting at promising oil and gas-bearing Bazhenov deposits, based on domestically-developed seismic, magnetic and gravitational methodologies, as well as specialist well investigations and technologies for geological-hydrodynamic modelling of strata.

Implementation of the national project also envisages the development of Russian technologies for the construction of multi-stage horizontal wells, optimised for the mining and geological conditions of the Bazhenov Formation, as well as strategies for bringing light shale oil reserves into development through thermochemical oil recovery. Assuming all such technologies prove successful on implementation, consistent with Gazprom Neft’s adopted strategy for developing its resource base on the basis of non-traditional hydrocarbons, target production from reserves at the Bazhenov Formation could reach approximately 2.5 million tonnes per year. Key research and investigations under the national project will be undertaken by 2021. Commercial implementation of the technologies developed — and their roll-out on the domestic and international markets — is expected to occur throughout 2022 — 2025. The systemic development and testing of new domestic technologies is expected to be undertaken at the Centre for Engineering and Technology for Hard-to-Recover Reserves, established by Gazprom Neft in conjunction with the Administration for the Khanty-Mansi Autonomous Okrug, Yugra.

Gazprom Neft First Deputy CEO Vadim Yakovlev commented: “As part of its in-house Technology Strategy Gazprom Neft is investigating the possibility of bringing non-traditional reserves — of which the Bazhenov Formation is considered to be the most important source in Russia— into development. We are constantly searching for the most effective methods of working with this category of hydrocarbons. The national project for investigating the Bazhenov Formation, bringing together Gazprom Neft’s technological and scientific resources, as well as leading research centres, service companies and equipment manufacturers, will allow the creation of technologies to locate reserves precisely, optimise drilling, and investigate the effectiveness of thermochemical recovery. In implementing these projects we hope to see the Bazhenov Formation categorised as comprising reserves ready for commercial development, creating a new impetus for the development of Russia’s entire oil and gas industry.”

Version for print