Project Profile
Value: US$7 billion
Location: Yamalo-Nenets Autonomous District, North Central Russia
Production: 30 bcm
Reserves: 891 billion cubic metres of gas and 133 million tons of gas condensate
Area: Unknown
Start-up Year: -
Vostochno-Urengoiskoe and Novo-Urengoiskoe are two gas and condensate fields located in Yamalo-Nenets Autonomous District of North Central Russi. TNK-BP subsidiary ROSPAN INTERNATIONAL holds licenses to develop the two gas fields. The estimated reserves are 891 billion cubic metres of gas and 133 million tons of gas condensate. ROSPAN INTERNATIONAL was established in 1994. TNK acquired 44% equity in 2002 and became 100% owner in 2004. Rospan is developing the deep gas reserves of the Valangin and Achimov formations in the Novo-Urengoiskoe and Vostochno-Urengoiskoe license blocks.
Novo-Urengoiskoe was launched at the end of 2015, allowing Rospan to double the licence area\'s capacity to 11 mcm per day of commercial gas, plus 1,750 tonnes of stable gas condensate. Once Vostochno-Urengoiskoe launches, Rospan\'s annual gas production volume will rise fivefold to reach 19 bcm.
TNK-BP invested US$51 million in 2008 and US$77 million in 2007 in Rospan development. The investment was used to upgrade the existing equipment, set up new wells and interpret 3D seismic data. Rospan gas sales totaled 1.5 billion cubic metres in 2007 and 2.5 billion cubic metres in 2008. The cumulative gas production of amounted to 30 bcm. According to the preliminary estimates, the company produced 3.5 bcm of gas in 2012. TNK-BP has been consistently implementing the unified full field development plan for the Achimov formations of the Rospan fields. The first development phase includes drilling and construction of 276 new development wells and the construction of a gas and condensate treatment unit, export pipelines and a railroad loading terminal at the station of Korotchaevo. By 2040, the overall project investment will exceed US$7 billion. In 2012 the company doubled its investment in Rospan development, putting US$233 million into the project.
In December 2007 TNK-BP reached an agreement with Gazprom’s subsidiary Mezhregiongas to create a joint venture to market Rospan’s gas and condensate. The JV started operations in March 2008 and sells gas to industrial and commercial customers at market terms. The primary goal of the JV is to create a basis for further development of Rospan and increase its production over time. Creation of the JV allows TNK-BP to benefit from the Mezhregiongas’ marketing expertise and deep reach into the regional markets. TNK-BP is working on the full field development planning. As part of the project, TNK-BP has received specifications for a tie-in to Gazprom trunk pipeline to transport sales gas and has completed route surveys required to start the gas pipeline design.
Operators:
ROSPAN INTERNATIONAL (subsidiary of TNK-BP): Operator with 100% interest