TNK-BP Cuts Subeconomic Wells by 25 Percent at Sorochinskneft

April 13, 2010

The number of subeconomic wells at fields operated by Sorochinskneft (part of Orenburgneft, a TNK-BP subsidiary) was trimmed 25 percent in March, TNK-BP reported in a news release.

Arkadiy Popov, the head of Sorochinskneft’s field development section, said production in most of the wells is subeconomic because of the high water-cut.

“After assessing the commerciality of the entire operating well stock together with the economics department, we compile a list of subeconomic wells and decide whether to perform well interventions or to shut in wells for subsequent suspension or abandonment”, Popov said. “During March 2010, the number of subeconomic wells was cut by 25 percent, or by 13 wells, 10 of them thanks to well interventions.”

Sorochinskneft monitors the performance of each well that is currently subeconomic on a monthly basis.

Popov noted that the monitoring program will help to achieve annual savings across Sorochinskneft of around 6 million rubles.

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