Background

The Kovyktinskoye gas field is one of the largest undeveloped natural gas fields in Eastern Siberia, Russia. The field is located in the northern part of the Irkutsk Oblast, in the Zhigalovo and Kazachinsko-Lensk districts.

The field was discovered in 1987. In June 2007, TNK-BP agreed to sell its stake for US$ 700 million to US$ 900 million to Gazprom with option to buy back a 25% plus one share stake in the project.However, this deal never materialized.

In June 2010, Rusia Petroleum, the developer of Kovykta field filed for bankruptcy.TNK-BP also tried to sell the field to state-owned Rosneftegaz, but failed.On 1 March 2011, Gazprom bought Rusia Petroleum's assets, including rights for the Kovykta field, for $711 million.

The field is unique in terms of C1+C2 reserves: Gazprom’s licensed blocks (Kovyktinsky, Khandinsky, and Chikansky) contain 2.7 trillion cubic meters of gas and 90.6 million tons of gas condensate (recoverable).

Brief Introduction

2014 saw the beginning of pilot oil production from the field. Eventually, oil from Chayandinskoye will be pumped into the Eastern Siberia – Pacific Ocean oil pipeline.

In 2015, Gazprom commenced the pre-development of Chayandinskoye’s gas deposits. Gas production from the field will start simultaneously with the launch of the Power of Siberia gas trunkline.

In 2017, two exploratory wells were drilled and 3D seismic surveys covering 2,400 square kilometers were performed. Gazprom continues to prepare Kovyktinskoye to move from pilot development to commercial production. 

Gazprom continues to prepare Kovyktinskoye to move from pilot development to commercial production. Comprehensive geological studies are currently underway at the field. 

Efforts are being made to design the site structures and facilities for production purposes, along with gas transmission capacities. It is planned to start feeding gas from Kovyktinskoye into the Power of Siberia gas pipeline in late 2022, with a section of the pipeline to be laid in the Irkutsk Region.

It was noted that Gazprom is considering an option to build a small-scale LNG production facility at the field. This will allow the Company to replace diesel fuel with natural gas – the most eco-friendly and cost-effective type of fuel – for drilling operations.

Company behavior

Gazprom plans to construct seven production wells at Kovyktinskoye before the end of this year.