SPD Started Drilling 1st Bazhenov Well

January 13, 2014

Salym Petroleum Development (SPD) started drilling the first horizontal appraisal well in Bazhenov formation in Upper Salym as a part of pilot project which provides for construction of five horizontal appraisal wells in 2014-1015 using multifrac technology.

Salym Petroleum Development N.V. is a 50/50 Joint Venture of Shell Salym Development B.V. (part of Shell group) and Gazprom Neft. Since 2003, SPD has been developing the Salym group of oilfields (West Salym, Upper Salym and Vadelyp), which are located in the Khanty-Mansi Autonomous Okrug in Western Siberia. Total recoverable resources are 140 mln. tones. The Salym Project is one of the largest on-shore investment projects with foreign capital in the Russian energy sector. In 2013, SPD produced about 7 mln. tons of oil.

During the last three years SPD conducted extensive studies to reduce geological uncertainties of developing Bazhenov formation, including drilling of three vertical exploration wells in Upper Salym, 3D seismic, coring and well logging. In addition, SPD conducted extended tests of two wells to assess productive potential of Bazhenov formation. This study helped to reduce geological uncertainties and enabled SPD specialists to define the requirements for surface infrastructure and oil recovery method. 

“Together with our ASP EOR project, Bazhenov development is an important element of our growth strategy. Results of preliminary studies demonstrated that the approach taken by SPD can enable the company develop hard-to-recover resources in an environmentally safe and efficient manner. We hope that the pilot project will allow us and our shareholders to make decision about moving to a large-scale development of Bazhenov formation in the Salym fields”, – said Oleg Karpushin, SPD CEO. 

ASP is a promising enhanced oil recovery technology based on the injection of chemical mix of alkali, surfactant and polymer into the reservoir. Alkali and surfactant enable to reduce the surface tension between oil and water; polymer improves a water-oil displacement. This technology is already actively implementing in USA, Canada and China; a number of tests are done in other countries. SPD has been studying the ASP technology since 2008. The company has conducted a number of laboratory and field tests. In November 2012 SPD shareholders approved the implementation of the pilot ASP project on the Salym group of oil fields in 2013-2015.

Source: Salym Petroleum Development (SPD)