Arctic Exploration Strategy of JSC 'Gazprom Neft'

Vladimir Verzhbitsky

JSC 'Gazprom Neft' has a long history of offshore geological exploration. In 2001-2005, affiliated company JSC 'Gazprom Neft-Chukotka' carried out seismic surveys in the Gulf of Anadyr area, including drilling of the first offshore well (2002) in the Russian part of the Bering Sea. In 2005-2009, geological exploration of the Lopukhovsky block on the northeastern shelf of Sakhalin was conducted. At the same time, area of the Chukchi Sea north to Wrangel Island latitude, which is in the same zone with the giant Prudhoe Bay oil field in Alaska, was defined as a promising region in the Arctic Shelf. Our Company applied for a permit for the North Wrangel block as far back as 2004 and then in 2006. In 2009, the Barents Sea (including the Pechora Sea) was chosen the main strategic region for the Company’s activities development. The offshore division of our R&D Center performed basin modeling for the Black, Pechora, Kara, and Caspian seas. Since 2010, JSC 'Gazprom Neft' has been implementing the Detailed Program of Offshore Studies in 2010-2015, which aim is to identify the priority regional study objects and research plans. To fasten obtaining of offshore competencies and subsequent to the evaluation by our R&D Center, since 2009 the Company operates in the deep-water blocks in waters of Cuba and Equatorial Guinea. At present, in cooperation with the Equatorial Guinean party, the Company studies opportunities to continue and strengthen its presence in the country. JSC 'Gazprom Neft' is involved (30%) in a joint project with Malaysian company Petronas (project operator) in the deep-water area of the exclusive economic zone of Cuba. In 2012, drilling of the first exploration deep-water well Catoche1 was conducted, oil and gas shows were found; however, tests have not been made for technical reasons. Although based on the drilling results reserves of Catoche structure decreased from that initially proposed by the partners, geological analysis of drilling showed the possibility of discovery of new promising targets on the continental slope. JSC 'Gazprom Neft' takes part in preparation of the state program for the study and development of the continental shelf of Russia. With the development of new major Messoyakhsky and Novoportovsky projects in the subarctic zone of Western Siberia, the Russian Arctic shelf development is recognized as priority strategic direction of business development for the Company. On this basis, proposals for licensing of the offshore Arctic in the Barents, Kara, and Chukchi seas were sent to the Ministry of Natural Resources of Russia; the possibilities for licensing in the Laptev and East Siberian seas as well as on the continental slope north of Franz Josef Land are being considered. In the mid-term, it is planned to develop a new area of oil production in the Pechora Sea and, subject to license for the blocks adjacent to Dolginsky and Prirazlomny being granted, to increase its production capabilities significantly.

AAPG Search and Discovery Article #90177©3P Arctic, Polar Petroleum Potential Conference & Exhibition, Stavanger, Norway, October 15-18, 2013