The oil arm of Russian energy giant Gazprom, Gazprom Neft, plans to raise oil production at its Arctic projects this year and is considering the launch of a new gas processing plant in Yamal, Rupec.ru reports.
The company said on Tuesday its oil production at the Novy Port project will rise to 8 million tons (160,000 barrels per day) in 2020 from 7.7 million tons in 2019.
It also plans to build another three wells at the Prirazlomnoye field – Russia’s only offshore oil producing project in the Arctic – in addition to 19 existing wells there.
The share of oil extracted in the Arctic has risen to more than 30% of its total oil production, Gazprom Neft said.
The company added it may consider expanding the gas infrastructure of the Novoportovskoye field with the prospect of launching a gas processing plant.
“The expansion of the complex gas treatment facility to a full-fledged gas processing plant with a capacity of 15 billion cubic meters of gas per year will help maintain a 95% useful gas utilization rate of associated petroleum gas,” it said, without specifying possible project implementation dates.
According to Gazprom Neft, oil production at the Vostochno-Messoyakhskoye field, which the company is developing together with Rosneft, increased by more than 22% – to 5.6 million tons of oil equivalent. The systematic increase in operating results was ensured by the use of advanced engineering and geological and technical solutions in the development of hard-to-recover viscous oil reserves, the company added.