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The TIMAN-PECHORA PROVINCE the Development of oil and gas potential

Vladimir Sarychev,

CEO of the Oil company "VOSTOK NAO"

A major factor in the rapid economic growth of the region was the development of oil production. That raised the status of the Nenets Autonomous Area in Russian Federation and included it in the global hydrocarbons market. The expansion of oil production in the Northern part of the Timan-Pechora province was the result of what was done in the Soviet Union  in part of the geological exploration and putting the reserves on the balance.

The contribution of extracting sector (and in fact only oil extracting sector) in the economic development of the region for  the Nenets Autonomous Area is the greatest in comparison with all subjects of the Russian Federation, including key resource centres of the Khanty-Mansi and the Yamal-Nenets Autonomous areas of the Tyumen region.

The Timan-Pechora province is one of the most significant oil and gas provinces in Russia. It is characterized by a large amount of the current reserves, a small part of the cumulative production and significant retained reserves, which make it very attractive and promising resource base. The low level of knowledge of the Timan-Pechora province's resources, the high oil quality of a number the key oil-fields and the presence of gas-condensate fields make the Nenets Autonomous Area more attractive for oilmen.

In may 2014 a new company was established – LLC "Oil company VOSTOK NAO" – for geological study, exploration and production of hydrocarbons in the licenced area of the Nenets Autonomous Area. The established company will carry out its activities in 7 licenced areas.

The strategic goals of the Company include:

  • Continuation of activities on the licenсed areas in accordance with the terms of the initially issued licenсe;
  • Section of geological risks and achieving additional economic effects during project implementation;
  • The increase of the resource base and production volumes;
  • Ensuring the requirements of environmental and industrial safety;
  • Contribution to socio-economic development of Nenets Autonomous Area.

The oil company "VOSTOK NAO" is developing a number of large licenced areas in Timano-Pechora oil and gas province today.


Обзорная карта района деятельности

  • The Verkhneangarskiy plot is located in the Eastern part of the Nenets Autonomous Area, 390 km North-East from the city of Naryan-Mar. The closest developed oil-fields are oil-fields located in the Western direction:

    Varandeyskoe – 151 km,
    Toraveiskoye – 142 km.

    On the West site of Verkhneangarskiy plot runs the pipeline linking the field Toraveyskoye. Transportation of oil is carried by pipeline to the terminal "Varandey".

  • The North Yareyginskey plot is located in the Central part of the Nenets Autonomous Area, 262 km on East from the city of Naryan-Mar. The closest developed oil-field is the Visavoe oil-field located 11 km away of the North-West site. The nearest pipeline is located 45 km on the West site.

  • The East Padimeyskey plot is located in the Eastern part of the Nenets Autonomous Area, 425 km on East from the city of Naryan-Mar. The closest developed oil-fields are fields located in the South-West direction:

    Cherpayuskoye – 125 km,
    Khasyreiskoye – 115 km,
    Nadyuskoye – 109 km

    On the South-west side of East Padimeyskey area passes the oil pipeline from the oil-field Nadyusha to the city Usinsk, where it connects to the main oil pipeline "Transneft".

  • The Narioychskiy plot is located in the North Central part of the Nenets Autonomous Area, 170 km North-East from the city of Naryan-Mar. The closest developed oil-field is the South Khylchuskoe oil-field, located 52 km away of the South-West site.

    On the South-East Narioychskiy  area passes the oil pipeline from the oil-field Tadinskoe to the city Usinsk, where it connects to the main oil pipeline "Transneft" and 77 km North-East there is an oil pipeline from the oil-field Varandey  to the village Varandey.

  • The Savatinskiy plot is located in the Eastern part of the Nenets Autonomous Area , 370 km North-East from the city of Naryan-Mar.

    The closest developed oil-fields are the oil-fields in the South-Western direction:

    Nadyuskoe – 60 km
    Khasyreiskoe – 78 km
    Cherpayuskoe – 96 km.

    On the South-Westen side of Savetinskiy plot runs the pipe-line from the oil-field Nadyuskoe to the city Usinsk, where it connects to the main oil pipeline "Transneft".

  • The Sebryaginskiy plot is located in the Eastern part of the Nenets Autonomous Area, 470 km North-East from the city of Naryan-Mar.

    The closest developed oil-fields are oil-fields located in the South-West direction:

    Nadyuskoe 168 km
    Khasyreiskoye – 180 km
    Cherpayuskoye – 198 km

    On the South-Westen side of Sebryaginskiy plot passes the oil pipeline from the oil-field Nadyuskoe to the city Usinsk, where it connects to the main oil pipeline "Transneft".
  • The Yangareyskiy plot is located in the North-Eastern part of the Nenets Autonomous Area, 440 kilometers North-East from the city of Naryan-Mar.

    The nearest developed oil-fields are Varandeyskoe and Toraveyskoye oil-fields situated 201 and 190 km away on the West site. 200 km away on the West side from The Yangareyskiy plot is the nearest oil pipeline to the terminal "Varandey".

The progress of seismic operations

 The name of the area

Date of Beginning the work

Planned volumes

 Verkhneangarskiy

2014
2014

2D - 490 linear. km
3D - 300  sq km

North Yareyginskey

2014
2014

2D - 340 linear. km
3D - 103 sq km

East Padimeyskey

2013-2014

3D - 400 sq km

Narioychskiy

2014

3D - 250 sq km

Savatinskiy

2013-2014

3D - 400 sq km

Sebryaginskiy

2013- 2014

3D - 400 sq km

Yangareyskiy

2014

3D - 450 sq km

Total

 

3D - 2178 sq km
2D - 1130  linear. km

 

Difficult geographical situation::

  • The subarctic climate changing in the Arctic climate.
  • Winter lasts for about 220-240 days, annual rainfall of 400-700mm.
  • Extensive wetlands, a dense network of small rivers and small lakes.
  • There are a lot of reserves and reindeer pastures (75%).

Limited resources^

  • Transportation of one ton of cargo by air costs on average 2.9 times more expensive than by road transport and 2.6 times more expensive than by railway transport.
  • The high cost of energy.

Weak transport infrastructure:

  • Roads have no communication with general public roads of Russia.
  • There are no major ports.
  • Rail connection is missing.
  • The majority of domestic freight and passenger transportations are carried out by aircraft.
  • 80% of the annual volume of works on the oil-fields are performed by helicopters.

At the moment most of the planned volume of seismic work is performed, the processing and interpretation of the data is being carried out now. After the completion of seismic data's interpretation hosting plans of exploratory wells and their subsequent construction will be worked out in 2016.

According the results of drilling exploratory wells is planned to clarify the building of promising structures and the revision of the resource base. The decision on industrial development of the areas may be made in 2018 after the end of the first stage of geological exploration. It is worth noting that the company operates are carried out in difficult conditions. The subarctic climate of the district is changing to the arctic one, lasts on average for 220 – 240 days. Almost all territory of the region is covered by vast wetlands and dense network of small rivers and small lakes. Approximately 75 percent of the territory is reserves and reindeer pastures. Transport and infrastructure framework of the Nenets Autonomous Area is weakly developed due to the fact that district roads with a total length of 233 km have no connection with the network of public roads of Russia, moreover, for a sufficiently long coastline of over 1,400 km there are no major ports and railway services in the Nenets Autonomous Area are missing. External and most internal cargo and passenger transportations are carried out by aircraft, which is the most mobile and also the most expensive way of transportation. Almost 80% of the annual volume of works on the oil-fields of the Nenets Autonomous Area is performed by helicopters in the period from May to November.

Ground delivery is only possible in the period from December to April, when there are winter roads. The Nenets Autonomous Area is the key region of activity of the Oil Company "VOSTOK NAO". The company has the necessary financial and technical capability to implement comprehensive development programs of its assets on the oil-fields of the Timan-Pechora province in the the Nenets Autonomous Area.

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Title
Портфолио Восток НАО
Constituent documents
History of company