Rosneft, Gazprom Neft plan new APG project at Messoyakha fields
May 30, 2018
Russian operators to build extensive gas re-injection system on the northern Gydan peninsula
Rosneft and Gazprom Neft have drawn up plans to increase the use of associated petroleum gas (APG) at their Messoyakha joint venture in the Russian Arctic.
In a joint press release on April 17, the two state-owned oil producers reported that Russia’s state design agency Glavgosexpertiza had approved a project to re-inject APG from the West-Messoyakhskoye oilfield into the reservoirs of the nearby East-Messoyakhskoye deposit.
The fields are situated on Russia’s northern Gydan Peninsula, within the Tazovsky district of the Yamalo-Nenets region. West-Messoyakhskoye was brought on stream in late 2016, while East-Messoyakhskoye is still undergoing development. The deposits are operated by Messoyakhaneftegaz, a 50:50 partnership between Rosneft and Gazprom Neft.
Within the next two and a half years, Messoyakhaneftegaz intends to construct a 1.5 bcm per year gas compressor station at East-Messoyakhskoye along with a 55-km pipeline to transport the field’s gas to West-Messoyakhskoye. Meanwhile, nine wells will be drilled at West-Messoyakhskoye to inject this gas into reservoirs, where it will be stored for future use.
Rosneft and Gazprom noted that the project was a “unique” solution to the problem of dealing with APG. Under law, Russian oil producers are not allowed to flare more than 5% of APG extracted at their fields. This has presented difficulties in remote locations, where there is often limited infrastructure to send the gas to market. Messoyakhaneftegaz already uses APG produced at East-Messoyakhskoye as fuel at a gas-turbine power plant, as well as for heating purposes.
The Messoyakha fields contain an estimated 470 million tonnes (3.45 billion barrels) of oil and condensate and 188 bcm of natural gas in recoverable reserves. East-Messoyakhskoye lifted 3.186 million tonnes (64,000 bpd) of oil last year, with output seen rising to 4 million tonnes (80,000 bpd) this year and plateauing at 6.5 million tpy (130,000 bpd) in 2020. West-Messoyakhskoye is slated to start producing oil in 2020 at a rate of 1 million tpy (20,000 bpd).
In late December, state lenders Sberbank and Gazprombank agreed to provide 100 billion rubles (US$1.76 billion) to Messoyakhaneftegaz to finance further development of the Messoyakha project.