Crude Oil Price by oil-price.net

Oil and Gas Energy News Update

Showing posts with label Russia. Show all posts
Showing posts with label Russia. Show all posts

Wednesday, September 7, 2011

Russia Can Double Oil Reserves By Tapping Arctic Potential -Lukoil Exec.

- Russia Can Double Oil Reserves By Tapping Arctic Potential -Lukoil Exec.

Wednesday, September 07, 2011
Dow Jones Newswires
SINGAPORE
by Max Lin

Russia can double its oil reserves if the government is determined to exploit the potential in the Arctic, a senior Lukoil Holdings executive said Wednesday.

"The development of Arctic fields needs political will and support from the government," Sergey Chaplygin, chief executive of Lukoil International Trading and Supply Co. said, but didn't elaborate. Lukoil is the country's biggest private oil producer.

Russia, the world's top oil and gas producer, has proven oil reserves of around 60 billion barrels, Energy Information Administration data showed.

Lukoil plans to explore oil production in the Russian Arctic with state oil company Rosneft under a new long-term cooperation agreement that takes effect this month.

Rosneft will also explore in the Arctic area with U.S. energy giant ExxonMobil, in a separate deal.

Copyright (c) 2011 Dow Jones & Company, Inc.

Oil & Gas Post

Promote Your Page Too
LINK

Friday, September 2, 2011

BP Briefs on Russia Office Raid

- BP Briefs on Russia Office Raid

Friday, September 02, 2011
BP plc

On Thursday night the bailiff of the Federal Bailiff Service (FSSP) for Moscow passed a resolution to postpone the execution of enforcement procedures against BP Exploration Operating Company Limited (BP EOC) until September 10, 2011. The postponement was introduced in response to a petition filed by BP EOC regarding the necessity to get clarification from the Arbitration Court of Tyumen Region. The required clarifications concern the judicial act which was the basis for the executive actions.

BP EOC believes that the Court Decision which allowed the inspection and copying of documents in the Moscow office of the company contradicts the applicable Russian legislation, contains outrageous requirements and was made in support of an unfounded lawsuit. BP EOC is not a defendant in the legal claim by TNK-BP Holding minority shareholders and is neither a direct nor an indirect shareholder of TNK-BP Holding. The keywords "oil" and "gas", on which the search in documents was authorized to be carried out, allows the seizure of virtually all corporate documentation of BP EOC, including confidential documents.

In addition, the Arbitration Court of Tyumen ordered the bailiffs to allow the representatives of Andrei Prokhorov, a minority shareholder of TNK-BP, to participate in the examination and confiscation of documents and then to turn them over to such representatives instead of the court. BP EOC believes that this process has been a misuse of the Russian Arbitration Procedure Code.

The decision taken by the bailiffs will allow BP EOC time to appeal against the decision of the Arbitration Court of Tyumen region under normal conditions and to require the complete cancellation of any enforcement proceedings under the unfounded lawsuit by Andrei Prokhorov.

At present, all examined documents of BP EOC remain in office in a sealed cabinet. The company expects to resume normal operation of the office on Monday, September 5.

Oil & Gas Post

Promote Your Page Too
LINK

Wednesday, August 31, 2011

BP Moscow Office Raided As Pressure In Russia Rises

- BP Moscow Office Raided As Pressure In Russia Rises

Wednesday, August 31, 2011
Dow Jones Newswires
MOSCOW
by William Mauldin, Alexander Kolyandr & James Herron

Russian court officials Wednesday raided the Moscow office of BP in the latest setback for BP in Russia following the collapse of a proposed $16 billion share-swap and Arctic oil exploration deal with state-controlled Rosneft.

The raid comes only a day after Rosneft signed a deal with ExxonMobil to explore the same offshore Arctic fields and work together in the U.S. and other locations.

Russian bailiffs entered BP's Moscow office to examine documents requested in a $3 billion lawsuit filed by Siberia-based minority shareholders in BP's exchange-listed Russian joint venture, TNK-BP Holding, BP spokesman Vladimir Buyanov said.

BP's London office said there are "no legitimate grounds for such a raid" and that the "entity raided has no connection with the process in Tyumen," Siberia, said a BP London spokeswoman. The documents seized by bailiffs "are confidential and have no connection with any shareholder issues," she said.

BP shares were flat Wednesday at 397 pence at 1123 GMT, slightly underperforming the broader U.K index. Some analysts said the Exxon-Rosneft deal was a big negative for the company, but others said the disappointing demise of the venture was already priced into the shares.

The escalating tensions are reminiscent of 2008, when BP fought a bitter battle in TNK-BP over strategic control of the venture that spawned raids by immigration officials and harmed relations between Russia and the U.K.

Dmitry Chepurenko, a lawyer representing TNK-BP minority shareholders, said BP Exploration Operating Company Ltd. didn't comply with a court order to provide documents connected with the abortive BP-Rosneft partnership. Thus the court in Tyumen, where the minority shareholders are based, Monday ordered bailiffs to retrieve the documents from BP Exploration Operating Company Ltd., Chepurenko said in a statement.

BP holds its TNK-BP stake through a unit based outside of Russia, although the staff who work with BP work out of its Russian office, which is also home to BP Exploration Operating Company Ltd. unit, BP's Buyanov said.

Most of BP's approximately 120 Moscow employees left work Wednesday as requested by the bailiffs, leaving mainly legal staff and security to work with the officials, Buyanov added. BP Russia chief Jeremy Huck also left the office and currently remains in Russia, the spokesman said.

TNK-BP minority shareholders are seeking RUB87 billion ($3 billion) from BP due to alleged losses stemming from BP's failed tie-up with Rosneft.

The powerful Alfa-Access-Renova consortium of Soviet-born businessmen successfully blocked the BP-Rosneft deal using a clause in the TNK-BP Ltd shareholder agreement.

Lawyers for the TNK-BP minority shareholders, who live in Tyumen, where TNK-BP Holding is based, said they have no connection with the consortium of billionaires, known as AAR.

BP in 2008 fought a losing battle with AAR for control of TNK-BP, then led by current BP Chief Executive Robert Dudley. The conflict included court battles in Tyumen as well as the removal of BP staff from Russia. The acrimonious dispute was resolved only when BP ceded greater influence over the joint venture to its Russian partners and Dudley resigned as TNK-BP CEO.

In a separate case from the Tyumen arbitration, AAR this month said it has asked a Stockholm arbitration panel to issue a final ruling on whether BP breached the TNK-BP shareholder agreement.

Copyright (c) 2011 Dow Jones & Company, Inc.

Oil & Gas Post

Promote Your Page Too
LINK

Friday, August 12, 2011

Russia and Turkmenistan to Partner in Offshore O&G Exploration

- Russia and Turkmenistan to Partner in Offshore O&G Exploration

Friday, August 12, 2011
OilPrice.com
by Charles Kennedy

Russia's Itera and Zarubehzneft have signed a Caspian production sharing agreement with Turkmenistan for exploring the country's offshore Caspian sector for oil and natural gas.

Itera general director Vladimir Makeyev and Zarubezhneft CEO Nikolai Brunich signed a production-sharing agreement to develop jointly the 21st block of Turkmenistan's sector of the Caspian.

The production sharing agreement stipulates that Zarubezhneft is the project operator and is authorized to do all the oil-production work under the PSA on behalf of the contracting companies, The Moscow Times reported.

Initial estimates by Itera and Zarubehzneft put Block 21's recoverable oil resources at 219 million tons, associated gas at 92 billion cubic meters, and natural gas at 100 billion cubic meters, with eventual investment in the project being up to $6 billion.

According to the PSA, which follows on from a September 2009 agreement signed between Itera and Turkmenistan's presidential state agency a 51 percent stake in the project will be transferred to Zarubezhneft, with Itera retaining the remaining 49 percent.

The PSA build on a decade-long effort by Itera and Zarubezhneft, which in 2001 signed an agreement with the Turkmen government regarding their intent to participate in the development of Turkmenistan's oil and gas sector.

(Charles Kennedy is Deputy Editor of OilPrice.com. The original article appears here.)

Oil & Gas Post

Promote Your Page Too
LINK

Thursday, August 4, 2011

PetroNeft Discovers New Oil Field in Russia

- PetroNeft Discovers New Oil Field in Russia

Thursday, August 04, 2011
PetroNeft Resources plc

PetroNeft, the owner and operator of Licenses 61 and 67, Tomsk Oblast, Russian Federation, announced its largest single discovery to date, a new oil field at Sibkrayevskaya in License 61.

Highlights:
  • Sibkrayevskaya No. 372 well makes significant oil discovery in main Upper Jurassic target
    • Approximately 12.6 meters of net oil pay in J1 interval - exceeding pre-drill estimates
    • Good reservoir properties indicated with oil saturation throughout
    • Open hole inflow test of 170 bopd (unstimulated)
    • Sixth oil field discovered in License 61
  • Development drilling at Lineynoye continues to push field boundary significantly further north and encounters materially thicker pay
    • An additional well is now planned to be drilled 500 meters beyond the most northerly well to date
  • Exploration to commence at License 67 with first well scheduled later this month
  • Russian Mineral Extraction Tax reduction law passed and comes into effect on January 1, 2012
    • Enhancing profit margin from qualifying fields

Sibkrayevskaya No. 372 well

The Sibkrayevskaya No. 372 well at the Sibkrayevskaya prospect located in the north east corner of License 61 was spudded on July 9, 2011. It was a follow up to well No. 370 which was drilled in 1972. A comprehensive re-interpretation of the vintage well logs and drilling data from the 370 well using digitalized logs and modern interpretation tools had identified potential "missed pay" in the Upper Jurassic J1 interval. In the new well, No. 372, the Upper Jurassic J1 oil reservoir horizon was intersected as expected at -2,350.5 meters true vertical depth. Preliminary evaluation of the logs indicates that the J1 interval consists of 12.6 meters of net pay with good reservoir properties and oil saturation throughout, exceeding pre-drill estimates. An open hole test was conducted over this interval and tested at a pro-rated inflow of 170 bopd unstimulated. Based on preliminary analysis, the oil is of good quality with an API gravity of 37 degrees, which is consistent with other fields in License 61.

Sibkrayevskaya is a very large structure which will require additional seismic and well delineation. The 372 well was drilled in a flank position on the structure and current mapping shows an area of over 50 square kilometers up dip from the oil-down-to level defined in the well. Current indications are that the ultimate recoverable reserves in the field could be significantly larger than the 44 million barrel pre-drill target defined by Ryder Scott for the prospect. The discovery also extends the area of known oil to the northeast corner of the license area and improves the prospectivity of other structures in this area.

This discovery well adds a sixth oil field to License 61 and proves the strategy of following up on re-interpreted well logs from old wells that show potential by-passed oil pay zones. It is hoped to further appraise the Sibkrayevskaya oil field with a seismic program and the drilling of at least one appraisal well in 2012.

License 61 Development program

Two further development wells have been drilled from Pad 2 at the Lineynoye oil field. Well 208 encountered 8.8 meters of net oil pay. Well 207, which was the northernmost well drilled to date encountered 17.8 meters of net oil pay. This well was drilled at a location that had originally been interpreted to be outside the boundaries of the oil field and the result further proves that the Lineynoye field extends much further north than previously estimated. An additional well will now be added to this year's program at Pad 2 to drill the reservoir approximately 500 meters further north of the 207 location.

The results of well 207 and other recent Pad 2 wells have shown that the northern part of the Lineynoye field has materially thicker pay and extends significantly further north than originally anticipated. This has positive implications for reserves and productivity in this region of the field and for the likelihood of several new structures north of Lineynoye/West Lineynoye to be oil bearing.

License 67 Exploration program

Exploration on License 67 is due to commence shortly. The mobilization of the drilling rig to the Cheremshanskaya site has been completed and rig-up operations are underway. It is expected that the well will be spudded later this month. The well is targeting objectives at the Upper, Middle and Lower Jurassic horizons following up on previously drilled wells. The well will take up to two months to complete drilling and testing.

Mineral Extraction Tax (MET) reduction law for small fields

The MET reduction law for small fields was signed into law by President Medvedev on July 21, 2011. The law will become effective from January 1, 2012. The law is applicable to undeveloped fields with Russian C1+C2 recoverable reserves below 5 million tonnes (approximately 37.5 mmbbls). The law applies a sliding scale of discounts depending on the initial size of the field. The Arbuzovskoye field which is the focus of our development activities for next year has Russian registered C1+C2 recoverable reserves of 1.3 million tonnes and consequently it will qualify for a 46% MET discount. This will significantly enhance the profitability and cashflows of the Arbuzovskoye and other qualifying oil fields and accelerate the development of such fields in the License area.

Dennis Francis, Chief Executive Officer of PetroNeft Resources plc commented, "We are delighted with the discovery at Sibkrayevskaya, a significant new oil field which is our largest single discovery to date in terms of reserves. This is an especially important discovery, because it proves our strategy of following up on previously drilled structures by re-interpreting old well data using modern software and techniques to identify by-passed pay. The two well exploration program now commencing at License 67 is also based on re-interpreted data from old wells. We look forward to updating shareholders on the results of these wells later in the year. "

Oil & Gas Post

Promote Your Page Too
LINK

Wednesday, July 20, 2011

Russia and Total to Invest $38B in Arctic Gas Production

- Russia and Total to Invest $38B in Arctic Gas Production

Wednesday, July 20, 2011
Deutsche Presse-Agentur (dpa)

Russia and the French energy giant Total will jointly invest 38 billion dollars in a liquefied natural gas project in the Arctic, Prime Minister Vladimir Putin said Wednesday.

The plan calls for the construction of an Arctic Sea terminal in Russia's Yamal Peninsula which would, once completed in 2018, allow France to receive annually 15.5 million tonnes of liquefied gas by tanker, Interfax reported.

"Thanks to the project Russia's presence in the market for liquefied natural gas (LNG) will expand," said Putin at a Moscow press conference.

Russia's government had previously approved Total's purchase of a 20.5 percent stake in Yamal SPG.

Yamal SPG is owned by Russia's largest private gas producer, Novatek. Total in April purchased a 12 percent stake of Novatek.

Novatek holds a production license to some of the richest gas fields in North West Siberia. The region according to estimates contains some 1.3 trillion cubic meters of gas and nearly 52 million tons of gas condensate.

The Yamal peninsula is a remote Arctic territory of permafrost, tundra, swamp and pine forest. Its remoteness and harsh conditions makes energy development costly.

Copyright 2011 dpa Deutsche Presse-Agentur GmbH

Oil & Gas Post

Promote Your Page Too
LINK

Monday, July 11, 2011

Could Energy Resources Cause Russia to Spark a Naval War in the Caspian?

- Could Energy Resources Cause Russia to Spark a Naval War in the Caspian?

Monday, July 11, 201
OilPrice.com
by John Daly

In the past three decades the Islamic Republic of Iran has developed a well-earned sense of paranoia. First, in September 1980 Saddam Hussein invaded Iran in what he thought would be a quick military victory, but which quickly turned into an eight-year bloody slugfest, leaving an estimated 500,000-1,000,000 dead before the guns fell silent.

More recently Iran has been subjected to increasingly militant rhetoric from both Tel Aviv and Washington over its civilian nuclear energy program, with thinly veiled threats of possible military action if Tehran does not abandon its efforts, even though they are completely complaint under the terms of the Nuclear Non-Proliferation Treaty (NPT), which Iran has signed.

Now however, potential is brewing for Iran from an unexpected direction - the north.

Russia is sharply increasing its military presence in the Caspian. Russian Federation Navy Commander in Chief Admiral Vladimir Vysotskii has stated that Russia's Caspian Sea Flotilla will receive up to 16 new ships over the next decade, while some aviation units will be transferred to the Navy from the Russian military's southern operational-strategic command. What has really got to have the mullahs in Tehran fingering their worry beads however is Vysotskii's promise to provide the Caspian Sea Flotilla with Bastion shore-based missile systems armed with Yakhont hypersonic missiles, which are designed to destroy surface targets at distances of up to 200 miles.

Russia's Caspian Sea Flotilla flagship, the Tatarstan frigate, is already the most powerful vessel on the Caspian, armed with Uran missiles with a range of 100 miles. Later this year the Tatarstan will be joined by a sister ship, the Dagestan.

The Caspian Sea Flotilla is also taking delivery of the first in a series of new Project 21631 Buyan-M-class rocket-artillery ships, along with three amphibious assault ships.

The Iranian Navy has a total of approximately one hundred, mostly small combat and supports ships on the Caspian. They include three Iranian-made midget submarines (of a North Korean type that can transport a group of combat divers and have a range of 1,200 miles), an outdated Salman-class minesweeper (American-made), and patrol cutters.

Russian analysts believe that Iran however has the ability to increase its Caspian naval forces by 50 percent in short order by relocating craft from the Persian Gulf.

As for the other Caspian littoral states - Azerbaijan, Turkmenistan and Kazakhstan, their naval forces are negligible, to be polite.

So, why is Russia beefing up its naval presence?

The most likely reason is the one that has bedeviled the region for the last two decades - a final treaty delineating the ownership of the Caspian's offshore waters and seabed has yet to be signed. While Moscow and Tehran might agree about keeping the U.S. locked out of exploiting the Caspian's energy resources, worth an eye-watering $3 trillion, they remain at loggerheads over the issue of dividing the Caspian, with Russia insisting that each nation receive offshore waters in proportion to its coastline, while Iran insists that all five nations receive an equitable twenty percent apiece. Under the Russian definition Iran's share would be 11-13 percent.

Complicating the issue is that international law has yet to definitively designate whether the Caspian is an inland "sea" or a lake, an adjudication which has enormous implications for both the applicability of the 1982 U.N. Convention on the Law of the Sea and negotiation of the boundary demarcation regime affecting the littoral states' rights to significant undersea oil deposits.

Ironically, Iran has itself played the "gunboat diplomacy" card in the past. On 23 July 2001, an Iranian warship and two jets forced two Azeri research vessels, the Geofyzik -3 and the Alif Hajiyev, operating in what Azerbaijan calls the Alov oilfield on behalf of BP-Amoco, to leave the field where they were conducting surveys, which lies 60 miles north of Iranian waters. BP-Amoco immediately announced it would cease exploration activities and withdrew the research vessels. Azerbaijan denounced the move as a violation of its sovereignty and on 31 July charged that an Iranian reconnaissance aircraft had violated Azeri airspace and come within 90 miles of Baku. Ramping up the pressure, Iranian former Pasdaran Commander Mohsen Reza'i pointedly reminded Azerbaijan that the whole country had once been Iranian territory and that Iran might decide to take it back, even as the Iranian press speculated that the whole thing was a provocation cooked up by Azerbaijan who was scheming to bring about American intervention in the Caspian.

In the unlikely event that hawks in Washington ever considered, then or now, to fly the Stars and Stripes on the Caspian while taking a few potshots at the evil Russkies or the even more perfidious Axis of Evil mullahs, then geography seems to have thrown a spanner in the works, as the Caspian's sole exit point, the Volga-Don canal, is controlled by... Moscow.

What seems to be happening is that Russia has decided that gunboat diplomacy has its uses, and an upping of its naval presence in the Caspian might finally persuade Iran's obstinate mullahcracy that it's time to divvy up the Caspian pie according to Moscow's formula.

And, after all, 11-13 percent of $3 trillion is no small chunk of change, even to an OPEC member.

(John Daly is an energy and geopolitical specialist with OilPrice.com. The full article is available here.)

Oil & Gas Post

Promote Your Page Too
LINK

Tuesday, June 21, 2011

Maersk Interested in Oil, Port Projects in Russia

- Maersk Interested in Oil, Port Projects in Russia

Tuesday, June 21, 2011
Dow Jones Newswires
MOSCOW
by Jacob Gronholt-Pedersen

Danish shipping giant A.P. Moller-Maersk plans to spend around $1 billion a year on oil exploration in the coming years and is considering participation in offshore oil service projects in Russia's Arctic region, the company's chief executive, Nils S. Andersen, said.

"We would be interested in entering the oil service sector in Russia," S. Andersen told Dow Jones Newswires in an interview.

Russian Prime Minister Vladimir Putin met with the Maersk CEO in April at the company's headquarters in Copenhagen during an official visit to Denmark.

Maersk, whose oil reserves are declining in the North Sea, is actively seeking to increase oil reserves in the North Sea, Angola, Brazil and the Gulf of Mexico. The company could also be interested in joining Russian oil and gas projects, not only as a service contractor, but possibly as a partner in upstream projects.

"I won't exclude there are possibilities of joining upstream projects in Russia," S. Andersen said. "There are a number of international players over here. The possibilities are huge, but at the moment we have no concrete plans."

Russian state oil producer Rosneft is seeking to unlock vast energy reserves in its Arctic waters. Earlier this month, Rosneft's chief executive, Eduard Khudainatov, mentioned Maersk Oil alongside Norway's Statoil as possible partners in the Arctic.

Maersk has invested $1 billion a year in exploration activities in the last three years and plans to keep spending around that level, S. Andersen said.

During Putin's visit, investments in Russian ports were discussed.

"We are looking at investing in port terminals in Russia," S. Andersen said. "Our primary interest is in the gateways in the Gulf of Finland, the Black Sea and Russia's Far East.

Maersk, the biggest shipping company to and from Russia, owns a strip of land in the Kaliningrad port area on the Baltic Sea.

"We also have an option in Kaliningrad, but whether or not we will make use of it will depend on market developments," he said.

Copyright (c) 2011 Dow Jones & Company, Inc.

Oil & Gas Post

Promote Your Page Too

Tuesday, June 7, 2011

PetroNeft's 2011 Exploration Program to Double Reserves in Russia

- PetroNeft's 2011 Exploration Program to Double Reserves in Russia

Tuesday, June 07, 2011
PetroNeft Resources plc

PetroNeft, owner and operator of Licenses 61 and 67, Tomsk Oblast, Russian Federation, provided an update on its operations.
Highlights:
  • Kondrashevskoye No. 2 well successfully tests oil
  • Four additional wells completed in the Lineynoye Development Drilling Program
  • Drilling establishes interconnection between Lineynoye and West Lineynoye fields
  • New structural interpretation of Lineynoye shows thicker pays extend significantly further north
  • Facilities construction to expand capacity from 7,400 bopd to 14,800 bopd is on schedule for completion in July

License 61 Exploration / Delineation Program

PetroNeft's high impact 2011 exploration program, which has the potential to more than double our reserves, is targeting over 60 million barrels on three prospects in License 61.

The first well in the program, the Kondrashevskoye No. 2 delineation well, has been drilled and has confirmed 2.3 m of net pay in the J1 interval. This is consistent with the No. 1 well which discovered the oil field in 2008. The well tested high quality 41° API gravity crude oil at a prorated inflow rate of 32 bopd on a short open hole test (without stimulation). The well was then drilled to basement and a core taken to meet government regulations.

Neither Kondrashevskoye well has encountered the oil water contact for the field so we will now sidetrack the No. 2 well down-dip to locate the oil water contact and determine the full reserve potential of the field. This process in now underway and is expected to be completed by the end of June.

The second 2011 exploration well will be at Sibkrayevskaya, the largest prospect in the program at over 40 million barrels. Site preparation and mobilization of the rig and materials is complete and rig-up operations are well advanced. Drilling should start in late June, following completion of the Kondrashevskoye No. 2 sidetrack.

The site for the third exploration well, North Varyakhskaya No. 1, has also been prepared and the rig and materials have been moved to the site for a planned spud in August 2011 following Sibkrayevskaya.

2011 License 61 Development program - Lineynoye oil field

Production drilling continues with three additional wells successfully drilled from Pad 2, making a total of 5 thus far and the first well from Pad 3. Preliminary log and survey data for the development wells on Pads 2 and 3 are shown below, with Well 204 having the largest gross sand interval in the J1 section to date.

The primary objective for Well 203 was encountered deeper than anticipated and close to the oil-water contact for the field. The well was then side-tracked up-dip to the planned 204 location. The sidetrack well (203s) contained 2.0m of oil in the J1-1 interval with good oil saturation (65%), but the J1-2 sandstone interval was not developed in this location.

As a result of the information learned from Wells 203 and 203s, we have re-evaluated the seismic data for the Lineynoye Field. The resulting new interpretation clearly connects Pads 1 and 2 to the West Lineynoye field to the north where previously it had been thought they were separate structures. While this has positive implications for reserve and production performance from these areas of the field, the data also suggests that net pay in the planned Pad 3 wells is likely to be thinner than previously anticipated. Wells 204 and 205, which were drilled after the new structural interpretation have confirmed the revised mapping and shown that the area of thicker pays extends significantly further north than originally thought. This, together with the results of Well 334, will likely add extra wells to the Pad 2 program and reduce the number of wells to be located at Pad 3.

Due to the poor condition of the well bore in the original Lineynoye No. 1 discovery well (drilled in 1972) and the high quality reservoir characteristics at this location we have decided to drill a new production well adjacent to the L-1 location from Pad 2 at the end of the Pad 2 program. A modern well will allow effective production and drainage of this portion of the field through the use of a modern electric submersible pump and the application of hydraulic fracturing.

Production is currently about 2,500 bopd with the primary contribution coming from 7 of the 9 wells drilled last year with workovers to be carried out on the two poorest performing wells later in the year. New wells will now be tied-in but we do not anticipate significant production increases until some of the new wells can be fracture stimulated later this summer by a heli-frac crew.

License 61 Facilities Construction and Tie-in

The connection of Pads 2 and 3 to the existing central processing facility is complete and new wells being prepared for tie-in to the process facilities. Work to expand the central processing facility from 7,400 bfpd to 14,800 bfpd is expected to be completed on schedule by mid July.

2011 License 67 Exploration program

The drilling tender for the two exploration wells to be drilled in 2011 in License 67 has been completed and the contract was awarded to LLC "Tomskburneftegaz" (TBNG). In accordance with AIM Rule 13 and ESM Rule 13, the drilling contracts are deemed to be a related party transaction as Vakha Sobraliev, a Non-Executive director of the Company, is principal owner of TBNG.

The Board of Directors, with the exception of Vakha Sobraliev who is involved in the transaction as a related party, having consulted with Davy, the Company's Nominated Adviser and ESM adviser, have determined that the terms of the drilling contracts are fair and reasonable insofar as shareholders are concerned.

The two exploration wells, Cheremshanskaya No. 3 and Ledovoye No. 2a, are located close to existing all year round roads and will be drilled in the second half of the year following the License 61 exploration wells, utilizing the same drilling crew. We have already mobilized equipment and completed construction of the Cheremshanskaya site and the rig is now being mobilized by barge to a nearby river port. Construction of the site for the Ledovoye No 2a well will begin shortly and drilling will commence following completion of Cheremshanskaya No. 3.

Dennis Francis, Chief Executive Officer of PetroNeft Resources plc, commented, "We are delighted that the Kondrashevskoye No. 2 well has further proved up the Kondrashevskoye oil field and look forward to the additional data that the deviated portion of the well will provide. This oil field is one of the candidates for production drilling and tie-in during 2012.

"The development program is well underway and we have learned a lot from the drilling to date. The Lineynoye oil field extends further north and has thicker oil pays than previously thought whereas the Pad 3 area has some thinner pays. We will continue to dynamically adjust the drilling and completion program to ensure the optimum long term reserve and production outcome for Lineynoye and the surrounding discoveries."

Oil & Gas Post

Promote Your Page Too

Monday, May 30, 2011

ONGC, GAIL, Petronet May Invest INR155B in Russia Gas Project - Report

- ONGC, GAIL, Petronet May Invest INR155B in Russia Gas Project - Report

Monday, May 30, 2011
Dow Jones Newswires

Oil & Natural Gas Corp. (ONGC), GAIL and Petronet LNG may form a consortium to invest INR155 billion for a 15% stake in a liquefied natural gas project in Russia, the Hindustan Times reported Friday.

The consortium may buy a stake in the $30 billion LNG project of Russia's biggest independent natural gas producer, OAO Novatek (NVTK.RS), in the Yamal peninsula, the report said, citing an unidentified executive at one of the Indian companies.

A non-binding indicative bid is underway and the stake would be split between ONGC Videsh Ltd., GAIL and Petronet as 7.5%, 5% and 2.5%, respectively, the report said.

ONGC Videsh is the overseas investment arm of state-run explorer Oil & Natural Gas.

"We are not aware of any such bid," Petronet Chief Executive A.K. Balyan told Dow Jones Newswires. ONGC Chairman A.K. Hazarika declined to comment while GAIL's chairman wasn't immediately reachable for comment.

Copyright (c) 2011 Dow Jones & Company, Inc.

Oil & Gas Post

Promote Your Page Too

Tuesday, May 10, 2011

Russia Plans to Boost Investments in Iraq's Oil, Energy Sectors

Russia Plans to Boost Investments in Iraq's Oil, Energy Sectors

Tuesday, May 10, 2011
Knight Ridder/Tribune Business News
by Nehal El-Sherif, dpa, Berlin

The Russian government was working to increase its investments in Iraq, especially in the oil and energy sectors, Russian Foreign Minister Sergey Lavrov said Tuesday.

"Russia supports the Iraqi government in its efforts to restore security and develop the economy," Lavrov said at a joint press conference with his Iraqi counterpart Hoshyar Zebari in Baghdad.

"We are also working to increase cooperation and our investments here ... We are delighted that Russian companies are working in Iraq in the energy field," he said.

A consortium led by Russia's private oil company, Lukoil, secured the rights to develop an oilfield in 2009. Lukoil recently announced plans to quadruple its oil production from the massive West Qurna oilfield, to the west of Basra. It said initial production was scheduled for 2012 and full production should begin in 2017.

Iraq has held three international bidding rounds since late 2009 to attract investments in its oil and gas industry.

It relies heavily on oil exports for its revenue and aims to raise production from 2.5 million barrels to 12 million barrels per day within six years.

Lavrov said they also discussed the security situation in Iraq and cooperation in the defense sector. He also said Russia intends to open a consulate in the southern city of Basra, where some of the largest oilfields are located.

Copyright (c) 2011, dpa, Berlin. Distributed by McClatchy-Tribune Information Services.

Oil & Gas Post

Promote Your Page Too

Friday, May 6, 2011

BP Shares Jump On News Of Deal To Solve Russian Arctic Dispute

BP Shares Jump On News Of Deal To Solve Russian Arctic Dispute



May 6, 2011

BP Plc (NYSE:BP) said on Friday that an arbitration panel had issued a consent order permitting BP and the Alfa-Access-Renova (AAR) consortium to assign a disputed Arctic exploration opportunity to TNK-BP, a large Russian natural gas venture.

TNK-BP is Russians 3rd largest oil company, and is a 50/50 joint venture between BP and the AAR consortium.

AAR had gone to court to stop BP from entering into a deal with Rosneft, a Russian state-controlled firm, citing their existing contract with BP and their right of first refusal.

BP released a statement saying, "The order also permits the proposed share swap between BP and Rosneft to proceed subject to Rosneft having consented to assign the Arctic opportunity to TNK-BP."

The interim injunction preventing the firms from moving forward with their arctic exploration plans remains in place, pending Rosneft's consent to the deal.

Oil & Gas Post

Promote Your Page Too

Tuesday, April 5, 2011

Matra Pumps Production in Russia

Matra Pumps Production in Russia

Tuesday, April 05, 2011
Matra Petroleum plc
Matra announced that production has commenced from both existing wells in the Sokolovskoe Field, Russia.

Neither well has yet stabilized and as expected both will require acid stimulation and/or pump installation to maximize production rates. Well -13 is currently producing approximately 65 bopd and well-12 approximately 100-150bopd, although both well rates are fluctuating significantly and have not yet unloaded residual mud and completion fluids from the wellbore. In total over 2,000 bbls of oil have been produced from the wells and oil sales are being made on a regular basis.

Attempts to stabilize flow rates are being made before conducting the pressure surveys which will enable us to estimate the capability of the wells after acidization and/or pump installation. It is notable that neither well has yet produced any formation water.
Pressure surveys and analysis will occur during the next two weeks and a plan to maximize production rates will follow.

The weather in Orenburg has been a little unusual this year with some late heavy snowfalls which have delayed demobilization of the side-track rig. The main thaw has now begun and heavy load transportation will be limited during April whilst the snow melts and clears.
Matra's Managing Director, Peter Hind commented, "Well-12 side-track is producing at broadly similar rates to the original hole prior to acidising and the data from forthcoming pressure surveys should allow us to confirm the potential to improve production substantially. Whilst it is not possible to comment on ultimate production rates at this stage, the original well demonstrated an eight-to-ten fold improvement after acid.

"It is encouraging that the water appears to have been isolated, by remedial cementation, in well-13 and it was anticipated that this procedure would also damage the oil reservoir. Pressure data acquisition will again allow us to estimate likely rate improvements.
"We are currently planning to mobilize a coiled tubing unit to the well sites to ensure the proper clean up and to undertake acidization as appropriate. This work will commence once the road restrictions associated with the annual thaw are removed. Until that time data acquisition and oil production/sales will continue."

Matra Commences Production in Russia

Matra Commences Production in Russia

Tuesday, April 05, 2011
Matra Petroleum plc
Matra announced that production has commenced from both existing wells in the Sokolovskoe Field, Russia.

Neither well has yet stabilized and as expected both will require acid stimulation and/or pump installation to maximize production rates. Well -13 is currently producing approximately 65 bopd and well-12 approximately 100-150bopd, although both well rates are fluctuating significantly and have not yet unloaded residual mud and completion fluids from the wellbore. In total over 2,000 bbls of oil have been produced from the wells and oil sales are being made on a regular basis.

Attempts to stabilize flow rates are being made before conducting the pressure surveys which will enable us to estimate the capability of the wells after acidization and/or pump installation. It is notable that neither well has yet produced any formation water.

Pressure surveys and analysis will occur during the next two weeks and a plan to maximize production rates will follow.

The weather in Orenburg has been a little unusual this year with some late heavy snowfalls which have delayed demobilization of the side-track rig. The main thaw has now begun and heavy load transportation will be limited during April whilst the snow melts and clears.

Matra's Managing Director, Peter Hind commented, "Well-12 side-track is producing at broadly similar rates to the original hole prior to acidising and the data from forthcoming pressure surveys should allow us to confirm the potential to improve production substantially. Whilst it is not possible to comment on ultimate production rates at this stage, the original well demonstrated an eight-to-ten fold improvement after acid.
"It is encouraging that the water appears to have been isolated, by remedial cementation, in well-13 and it was anticipated that this procedure would also damage the oil reservoir.

Pressure data acquisition will again allow us to estimate likely rate improvements.
"We are currently planning to mobilize a coiled tubing unit to the well sites to ensure the proper clean up and to undertake acidization as appropriate. This work will commence once the road restrictions associated with the annual thaw are removed. Until that time data acquisition and oil production/sales will continue."

Friday, April 1, 2011

Drilling Commences at Urals' Petrosakh Field

Drilling Commences at Urals' Petrosakh Field

Friday, April 01, 2011
Urals Energy Public Co. Ltd.
Urals announced that Well #51 on the Petrosakh field, in Russia, has been successfully spudded.
As part of the Company's updated drilling strategy to capture the full potential of the Petrosakh field, Well #51 is a large diameter vertical well designed to maximize flow rates.
The Directors expect production to begin before the end of May and further announcements will be made at the appropriate time.

Monday, March 28, 2011

Exillon Appraisal Discovers Oil in Russia

Exillon Appraisal Discovers Oil in Russia

Monday, March 28, 2011
Exillon Energy plc
 
Exillon, with assets in two oil-rich regions of northern Russia, Timan-Pechora ("Exillon TP") and West Siberia ("Exillon WS"), announced that appraisal well 5 (EWS I - 50P) successfully found oil on the northern extension of the East EWS I field.

Appraisal well 5 (EWS I - 50Р) was designed to test a 5 sq km northern extension to the East EWS I field. The new appraisal contained pre drill estimates of 13.3 million barrels of possible reserves (Miller and Lents December 2010 reserves report). The well encountered the Jurassic P reservoir at 1858 m which is 2 meters higher than previously thought. Results of wire line logging combined with oil shows and sample analysis whilst drilling, have confirmed the presence of 13.9 m of gross oil pay within the Jurassic. The well was spudded on 9 March 2011 was drilled in 18 days on a northern part of the East EWS I field. Testing of the well will be completed by the end of April.

Friday, March 25, 2011

Rosneft Ready to Defend its BP Deal

Rosneft Ready to Defend its BP Deal

Friday, March 25, 2011
by  William Mauldin
Dow Jones Newswires
 
Rosneft Chairman Igor Sechin said the company is ready to defend its $16 billion tie-up with BP, after an arbitration tribunal extended a ban on the deal following complaints from BP's existing Russian partners, Russian newswires reported Friday.

State-controlled Rosneft is already suffering losses because the panel extended an injunction blocking the deal at the behest of BP's partner in TNK-BP, Sechin said, according to an Interfax report.

Sechin, who is also Russia's powerful deputy prime minister overseeing energy, said the final arbitration ruling will come out of Stockholm only on April 7. Rosneft is "not in negotiations" with AAR, BP's partner in TNK-BP, nor has it received proposal from AAR, Sechin said, according to the reports.

BP said late Thursday that the arbitration tribunal ruled that a temporary court injunction against BP's deal with Rosneft "should continue." In a statement, BP said it was "disappointed" that the agreements "cannot for now go ahead in the form intended."

Besides BP and Rosneft, the panel's ruling is seen as a setback for Sechin, who has sought to attract billions of dollars of foreign investment into Russia's oil sector.

Shares of Rosneft sank 1.2% to RUB266.10 on the Micex Stock Exchange at 1220 GMT, compared with only a slight decline for the broader index.