Gazprom Neft To Cut Back On Tight Reserves Projects

By Elena Zhuk, February 6, 2014

In 2014, Gazprom Neft plans about 20% boost in drilling horizontal wells with multistage hydrofracturing, Vadim Yakovlev, First Deputy General Director of the company, said. "The volume of operations set to increase, but the growth wouldn’t be as exponential as in 2012-2013,” said Yakovlev.

Drilling the horizontal wells with multi-stage fracturing is holding one of the key stages for development of difficult reserves. In 2013, Gazprom Neft drilled 120 horizontal wells, 150% growth on the 2012 figures and 400% over the 2011 results. In 2013, the number of one-well multistage fracturing has tripled compared to 2012.

A stabilization of production in Noyabrsky region, the producer’s heartland, known by such production units as Gazpromneft-Noyabrskneftegaz and Gazpromneft-Muravlenko, is the key result of the technological breakthrough, according to Yakovlev. 

“I mean traditional deposits with certain properties that complicate the production process, such as tarnished deposits, undersaturated deposits, low-depth deposits,” said Yakovlev. It is this kind of reservoirs the company is striving to develop using its geological and technical sorcery. According to Yakovlev, about 16% of last year’s well intervention operations targeted unlocking the difficult reserves that would otherwise remain unprofitable.

“In general, such reserves have no tax benefits, so the synergy that we are getting by engaging such deposits in production, and that the state gets through extra tax revenues - this is our achievement, the result of technological progress,” holds Yakovlev.

Future prospects of working with difficult reserves depends on the state tax policy, reckons the specialist. “We have approached the technological limit. Meanwhile, this year’s tax burden has grown due to larger tax on natural resources production, also, most of difficult reserves aren’t covered by tax benefits,” says Yakovlev.

To date, the company develops some 20 million tons of difficult reserves; by 2020, Gazprom Neft and its subsidiaries (bar the JVs) wants to develop 300 million tons of difficult oil.

“The potential is high, but the opportunities depend on the state tax policy,” said Yakovlev.

Copyright, Oil&Gas Eurasia, 2014.