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17:08 | Sep 13 | 2013

Discussion of oil and gas industry development in Yakutia

According to the Ministry of Economy and Industrial Policy of the Republic of Sakha (Yakutia), oil production in Yakutia amounted to 6.7 million tons in 2012, which is 21.8% higher than in 2011.
The pipeline system “Eastern Siberia - Pacific Ocean” has been successfully placed into operation. Oil is produced in the central and eastern blocks of Talakansky, North-Talakansky, Alinsky, East-Alinsky, Irelyakhsky fields and the central block of Srednebotuobinsky field. Oil refining is not performed in the republic.
In recent years, the growth of oil production has been provided by the fields of “Surgutneftegaz” JSC which are connected to the ESPO pipeline system. The main direction of the government policy in the area of ​​ oil production growth is further organizational and administrative assistance to resource users in fields’ development and their connection to the ESPO.
The significant oil production growth will be achieved through infrastructure development of the Central Block of Srednebotuobinsky oil and gas field (OGCF) and its connection to the pipeline system “Eastern Siberia - Pacific Ocean” (“Taas-Yuryakh Oil and Gas” JSC). The pipeline construction from this field to the ESPO will be completed in the third quarter of 2013. Oil production of Srednebotuobinsky OGCF will be 1.6 million tons by 2015 and 5.7 million tons - by 2018.
Irelyakhsky field is located on the relative distance from the ESPO and has no access to foreign markets for oil sales, so “Irelyakhneft” is forced to produce oil in limited quantities only for consumers needs (such as fuel oil for needs of housing and utilities infrastructure). There are two projects for further development of Irelyakh oil production complex. The first variant involves construction of an oil pipeline to the ESPO pipeline system for transportation of produced oil for export. The second variant involves construction of a mini - refineries (oil refinery) in the field.
The strength of the republic oil industry is presence of subsoil users on the main large oil fields and the ESPO pipeline system. There are all prerequisites for oil production growth through supplies to the ESPO from not connected fields - the Central Block of Srednebotuobinsky OGCF and Chayandinsky OGCF.
In 2012, natural gas production in Yakutia amounted to 1,980 million cubic meters which is 5% higher than in 2011. The gas transportation system (GTS) of the republic consists of 4 local subsystems. The total length of the main gas pipelines and gas pipeline branches on the territory of the Republic of Sakha (Yakutia) is approximately 2,849.3 km. All the local GTS operate closely and are not technologically interdependent. Supplies of natural gas are produced to ensure electric and thermal energies generation.
Geologic exploration is continuing on Chayandinsky field. Gas reserves have increased from 1.2 to 1.4 trillion cubic meters of gas. The annual peak gas capacity is supposed to reach 25 billion cubic meters; this production level will be maintained for 14 years. When production will fall, it is expected to put new fields into production (Tass-Yuryakhsky, Verhnevelyuchansky, Srednebotuobinsky fields).
A gas pipeline “Power of Siberia” is planned to be constructed to transport produced natural gas; it should provide mass flow rate of 32 billion cubic meters per year.
According to preliminary calculations, the total investment in the economy of Yakutia amounts to 941 billion rubles. Furthermore, a large part of capital investment of 860 billion rubles will be made until 2017.
Implementation of the Eastern Gas Program in the republic will lead to creation of new high-tech jobs.
On September 4, there was a meeting on development of the oil and gas industry in Yakutia chaired by the Deputy Prime Minister of the Republic Aleksey Struchkov. The meeting also discussed issues of tariff policy formation in the oil and gas industries of the republic and a project of reconstruction and expansion of production capacities of the Yakutia Gas Processing Plant.
Source: http://ysia.ru