International Energy Agency forecasts radical transformation of the branch: “New production technologies will totally change the world’s hydrocarbon production and trade map in the coming 10-15 years”.

The world’s economy is coming into a new stage – high tech oil and gas era. As Rosneft’s president Igor Sechin mentioned at CERAWeek in Houston, today there appear first-priority large-scale tasks and conditions for the branch modification and consolidation on the basis of a new technological platform.

Rosneft is planning to invest 1.2 bln rubles (40 mln dollars) into geological survey on the Russian shelf. According to Mr. Sechin, the companies not ready for the new conditions of the global market risk to lag behind if they have difficulties with resource base replenishing and management. Rosneft’s resource substitution level in 2009 – 2011 was higher than of other colleagues in the branch, increasing by 200 % annually, and in 2012 – by 130 % (excluding offshore reserves) and was cheaper compared to competitors.

Rosneft is encouraged to explore unknown territories due to successful experience of Sakhalin oil and gas province exploration where it has more than 30 licenses onshore: the first barrels of oil were extracted there already in 1928. At the moment Rosneft is participating in the unique offshore projects in the Kara Sea: Sakhalin-1, -3, -5 and Severnoye Chaivo. The fields are developed both from onshore and platforms with the use of the cutting-edge technology. One of the examples of innovative solutions is a record directional well more than 12 km long in the project Sakhalin-1 drilled with the unique Yastreb drilling unit. There are other examples of high technologies used by the company. Particularly, the use of such methods as multiple hydraulic fracturing combined with horizontal drilling. Rosneft’s specialists actively use horizontal drilling with 7 km outstep and effective hole drilling up to 1 km in beds up to 3-4 m thick.  

During the past two years Rosneft actively increased its portfolio of technologically difficult offshore projects and developed the range of international cooperation. Rosneft’s expected extracted resources on the Russian shelf make up 275 bln barrels in oil equivalent. Rosneft has three largest global players as its partners. They are American ExxonMobil, Italian Eni and Norwegian Statoil. Investments during the first stage of geological exploration on the Russian shelf will make up about 14 bln dollars and presuppose drilling of 96 wells.

Agreement with ExxonMobil on strategic cooperation was concluded already in 2011, the first agreement being about exploration of three areas in the Kara Sea (with estimated reserves of 4.9 bln tons of oil and 8.3 bln m3 of gas) and of Tuapse depression on the shelf of the Black Sea (1.2 bln tons in oil equivalent). Rosneft’s share in these projects is 66.7 percent, ExxonMobil’s share is 33.3 percent. In turn Rosneft’s subsidiary - Neftegaz Holding America Ltd – got 30 % in the West Texas project. At the beginning of this year Rosneft got licenses for 12 more areas on the Arctic shelf (10 bln tons of oil and 7 bln m3 of gas), 7 of which were provided by ExxonMobil, in turn it got a warrant for purchase of 25% in Point Thompson gas field in Alaska (reserves are 3 bln m3).

At the beginning of March this year Rosneft concluded one more agreement with ExxonMobil on getting 30% in 20 blocks in the Gulf of Mexico. The area is 450 km2 and is situated at the depth from 640 to 2070 meters. However, the reserves estimation has not been done yet. This is the access to the richest oil and gas basin in the world, the development of which requires the most cutting-edge technologies. Received experience and knowledge can be used while developing the deep-water areas of the Russian shelf, Sechin marked. Proved reserves of the fields in the Gulf of Mexico make up 4.7 barrels in oil equivalent. At the moment the production makes up about 20% of the overall production in the USA (the data was received from Energy Information Administration).

Agreement between Rosneft and Eni signed in 2012 presuppose creation of a joint venture with shares 66.67 and 33.33 % respectively for offshore development in the Barents and the Black Seas. Eni shall finance costs for the geological survey and reimburse 33.33 % of the license purchase for each of the projects. Drilling of prospecting and appraisal wells is planned for 2015 – 2016. Perspective oil recoverable reserves for Fedynsky and Central Barents areas make up 2 bln tons of gas – 1.9 bln m3. 2D seismic survey is planned for 2013, 3D – for 2015-2016, drilling of 2 prospect wells – for 2019 – 2020.  
The two companies shall pay attention to the ecological issues and coordinate their activities on biodiversity preservation, as well as monitor changes of the seabed.

Last year saw large-scale Rosneft’s presence on the Russian Arctic shelf. There was chosen a drilling structure for the Kara Sea and performed a whole complex of geological surveys in different areas. Drilling is planned for 2014. The company plans that on the basis of drilling results there will be discovered a new oil and gas province on the Arctic shelf.

At the moment Rosneft is negotiating offshore projects with British BP.

Mr. Sechin marks that Arctic shelf development is a large-scale project demanding investments up to 500 bln dollars at the first stage.

Source: www.rg.ru