Oil and Gas Industry of Eastern Siberia and Russian Far East - 2012

Eastern Siberia is a key region in Russia’s strategy for energy development. Vast hydrocarbon reserves, which the government regards as critical to the country’s socioeconomic development, and proximity to Asia-Pacific markets make the regions of paramount importance to companies intent on tapping a market with growing potential.

Both Russian and foreign investors are involving in infrastructure building, intensive geological exploration, and early development of oil and gas reserves going on in Eastern Siberia and the Russian Far East. Meanwhile, high profile projects to develop transportation infrastructure and a burgeoning oilfield services market have attracted a significant number of contractors to the region.

The study Upstream Petroleum Industry in Eastern Siberia and Russian Far East provides up-to-date information on the situation in the region and includes details on oilfield licensing in the region, supply logistics, and oilfield services.

The report includes:
• An indepth examination of oil and gas fields in the regions
• A full description and analysis of each key market player
• Major projects in the region
• Forecasts for growth in the region’s petroleum industry through 2020

This report is completely updated and augmented with the latest changes in the growing regional landscape. It addresses Asia-Pacific’s expanded role in energy consumption and production, and the impact that will have on economies across the globe. Finally, the report analyzes the key factors that will influence market dynamics in the future.

Armed with information and indepth analyses from this report, companies already engaged in the market and those seeking opportunities there will be better able to assess the risks they face and the advantages they hold. They will be able to leverage their strengths and anticipate emerging opportunities, building strong market entry and expansion strategies and predicting realistic growth opportunities in this fast-paced market.

1 Introduction

2 Hydrocarbon reserves and resources

2.1 Eastern Siberia

2.1.1 Irkutsk Region

2.1.2 Krasnoyarsk territory

2.2 Far East

2.2.1 Republic Sakha (Yakutia)

2.2.2 Sakhalin region

2.2.3 Chukotka Autonomous District

2.2.4 Kamchatka territory

3 Key License Holders

3.1 Eastern Siberia

3.1.1 Rosneft

3.1.2 Surgutneftegaz

3.1.3 TNK-BP

3.1.4 Slavneft

3.1.5 Irkutsk Oil Company (IOC)

3.1.6 Gazprom

3.1.7 Gazprom Neft

3.1.8 Petromir

3.2 Far East

3.2.1 Rosneft

3.2.2 Gazprom

3.2.3 Petrosakh

3.2.4 Foreign Companies

4 Major projects

4.1 Eastern Siberia

4.1.1 Vankor project (Rosneft)

4.1.2 Yurubchensky project (Rosneft)

4.1.3 Kuyumbinsky /Tersko-Kamovsky project (Slavneft)
4.1.4 Talakan project

4.1.5 Verkhnechonsky project (TNK-BP-Rosneft)

4.1.5.1 Bolshekhetsky project (TNK-BP)

4.1.6 Yaraktinsky project (IOC)

4.1.7 Srednebotuobinsky project (Taas-Yuryakh Neftegazodobycha)

4.1.8 Dulisma project

4.1.9 Angaro-Lensky project (Petromir)

4.1.10 Chayandinsky project (Gazprom)   

4.2 Far East

4.2.1 Sakhalin

4.2.2 Sakhalin-1

4.2.3 Sakhalin-2

4.2.4 Sakhalin-3

4.2.5 Sakhalin-4, 5»

4.2.6 Other projects

4.2.7 Kamchatka

5 Hydrocarbon production in the East of Russia

5.1 Current oil and gas production

5.1.1 Eastern Siberia and the Republic of Sakha (Yakutia)

5.1.2 Far East

5.2 Oil and gas production growth potential

5.2.1 Oil production growth potential in Eeastern Siberia and the Repulic of Sakha

5.2.2 Gas production growth prospects in Eastern Siberia and the Repulic of Sakha

6 Export

6.1 APR Oil Market

6.1.1 China

6.2 Russia in APR Energy Market

6.2.1 ESPO System

6.2.2 Export via ESPO

6.2.3 Potential for ESPO expansion

6.2.4 ESPO Blend

6.2.5 Russian gas at the Asia-Pacific Rim market: plans and prospects

6.2.6 Gas market of China and Prospects of Russian Gas Export

6.2.7 South Korea

6.2.8 LNG Exports

6.2.9 Japan

7 Conclusion

Figure 2-1. Dynamics of Wildcat and Exploration Drilling in Irkutsk region

Figure 2-2. Distributed and undistributed oil and gas stock of Republic of Sakha (Yakutia)

Figure 3-1. The share of oil and gas production in Eastern Siberia out of total oil and gas production by Rosneft

Figure 3-2. Rosneft share of oil and gas production in the Far East of the total production

Figure 3-3. Oil and gas production at the Sakhalin-1 project (Rosneft’s net share)

Figure 4-1. Projected oil production at the Vankor field, million tons

Figure 4-2. Oil production by Surgutneftegas in the Republic of Sakha (Yakutia): 2001-2010

Figure 4-3. Oil production forecast for Surgutneftegas in the Republic of Sakha (Yakutia): 2011-2020

Figure 4-4. Projected oil production at the Verkhnechonskoye field

Figure 4-5. Well commissioning at the Verkhneconskoye field

Figure 4-6. Liquids hydrocarbon production by IOC: 2001-2011

Figure 4-7. Forecasted hydrocarbon production at Yaraktinsky project

Figure 4-8. Planned drilling of exploration wells at Srednebotuobinskoye field in 2012-2015.

Figure 4-9. Oil production at the Dulisma field, thousand tons

Figure 4-10. Hydrocarbon production at Sakhalin-1 project

Figure 4-11. Oil and gas production at Sakhalin-2, mln boe

Figure 5-1. dynamics of oil production in the Eastern Siberia and Republic Sakha (Yakutia), mln tons

Figure 5-2. Predicted oil production in Eastern Siberia and the Republic of Sakha (Yakutia) from 2010 through 2020: high scenario

Figure 5-3. Predicted oil production in Eastern Siberia and the Republic of Sakha (Yakutia) from 2010 through 2020: moderate scenario

Figure 5-4. Forecast of liquid hydrocarbons production at Sakhalin (on- and offshore) in 2011-2020 (high scenario), mln tons

Figure 5-5. Forecast of liquid hydrocarbons production at Sakhalin (on- and offshore) in 2011-2020 (low scenario), mln tons

Figure 5-6. Forecast of gas production at Sakhalin in 2011-2020 (optimistic scenario), bcm

Figure 5-7. Forecast of gas production at Sakhalin in 2011-2020 (moderate scenario), bcm

Figure 6-1. Dynamics of Energy Consumption (mln tons of oil equivalent) in 1990-2010

Figure 6-2. Energy Consumption Growth Rates in 1990-2010 by World Regions

Figure 6-3. Dynamics of Energy Consumption (Mt o.e.) in the key APR countries in 1965-2010

Figure 6-4. Dynamics of Used Sources of Energy in China in 1957-2010

Figure 6-5. Distribution of Oil Export via Kozmino in 2010-2011.

Figure 6-6. Qualitative Characteristics of ESPO Blend as Compared to Other Oil Brands

Figure 6-7. LNG Imports to China in 2010, by Country and Region

Figure 6-8. Energy consumption dynamics in South Korea (Mt of oil equivalent) in 1965-2010

Figure 6-9. Structure of Energy Consumption in South Korea in 2009-2010

Figure 6-10. Dynamics of Oil and Gas Consumption in South Korea (1987-2010)  

Figure 6-11. LNG Imports to South Korea in 2010 (bcm and market share)

Figure 6-12. Structure of Sakhalin-2 LNG sales in 2010

Figure 6-13. Structure of Energy Consumption in Japan in 2009-2010

Figure 6-14. Gas Imports to Japan in 2010 (bcm and market share)

Table 2-1. Hydrocarbon reserves and resources of the Irkutsk region in 2011

Table 2-2. Seismic works in Irkutsk region

Table 2-3. Explored hydrocarbon reserves in the Irkutsk Region, by field (as of January 01, 2011)

Table 2-4. Hydrocarbon reserves and resources of Krasnoyarsk territory (as of start of 2011)
Table 2-5. Explored hydrocarbon reserves of Krasnoyarsk territory, by field (as of January 01, 2011)

Table 2-6. Reserves and Resources of the Republic Sakha (Yakutia) (2011)

Table 2-7. Explored hydrocarbon reserves of Republic Sakha/Yakutia, by field (as of January 01, 2011)
Table 2-8. Hydrocarbon reserves and resources of the Sakhalin region in 2011

Table 3-1. Rosneft resource base in Eastern Siberia (as of EOY 2011)

Table 3-2. Predicted resources at licensed sites adjoining the Vankor field (as of EOY 2011)

Table 3-3. Predicted resources at Rosneft licensed sites in Irkutsk Region and Evenkiya

Table 3-4. Rosneft exploration activities in Eastern Siberia, 2005-2010

Table 3-5. Rosneft planned exploration in Eastern Siberia through 2015

Table 3-6. Field development by Rosneft consolidated subsidiaries and affiliated companies in Eastern Siberia

Table 3-7. Rosneft production of oil and gas in Eastern Siberia

Table 3-8. Surgutneftegaz resources in Eastern Siberia and the Republic of Sakha (Yakutia) as of January 1, 2011

Table 3-9. Surgutneftegaz oil and gas production, 2011, by field

Table 3-10. TNK-BP recoverable reserves in Eastern Siberia as of January 1, 2011

Table 3-11. TNK-BP License areas in Eastern Siberia (2010)
Table 3-12. Reserves at Slavneft fields and license areas in Krasnoyarsk Territory, as of January 1, 2011

Table 3-13. Resources of Slavneft license areas, 2010 (Krasnoyarsk Territory / Evenkiya)

Table 3-14. Slavneft geological exploration in Krasnoyarsk Territory

Table 3-15. Table 3-1: Irkutsk Oil Company recoverable hydrocarbon reserves (as of January 1, 2011)

Table 3-16. Irkutsk Oil Company license areas

Table 3-17. Gazprom’s recoverable reserves in Eastern Siberia (Jan 01, 2011)

Table 3-18. Gazprom gas, gas condensate and oil reserves dynamics for Siberian Federal District, 2005-2010

Table 3-19. Gazprom Neft’s hydrocarbon reserves of in Eastern Siberia (07.10.2011)
Table 3-20. Petromir fields’ reserves in Eastern Siberia, January 1, 2011

Table 3-21. RN-Sakhalinmorneftegaz reserves, as of December 31, 2010, per the PRMS, DeGolyer&MacNaughton classification

Table 3-22. Rosneft – Sakhalinmorneftegaz operational performance

Table 3-23. Rosneft geological exploration in the Far East, 2005-2010

Table 3-24. Field development by Rosneft companies in the Far East

Table 3-25. Rosneft oil and gas production in the Far-East

Table 3-26. Reserves in the Sakhalin-1 project (Rosneft’s share as of Dec. 31, 2010, per the PRMS, DeGolyer&MacNaughton classification)

Table 3-27. Operational performance of the Sakhalin-1 project

Table 3-28. Gazprom’s gas, oil and gas condensate reserves in the Far-East, 2005-2010

Table 3-29. Gazprom’s license portfolio in the Far East

Table 3-30. Sakhalin projects with foreign participation

Table 4-1. Hydrocarbon reserves in the Vankor field (as of December 31, 2010/January 1, 2011)
Table 4-2. The main facilities of the production infrastructure at the Vankor Field (as of late 2011

Table 4-3. Hydrocarbon reserves in the Yurubchenskoye field (as of December 31, 2010/January 1, 2011)

Table 4-4. Hydrocarbon reserves at the Kuyumbinskoye and Tersko-Kamovskoye fields

Table 4-5. Recoverable Oil Reserves of Talakan project by field

Table 4-6. Initial hydrocarbon reserves in the Verkhnechonskoye field, by strata

Table 4-7. Hydrocarbon reserves in the Verkhnechonskoye field (as of 12.31.2010/01.01.2011)

Table 4-8. Hydrocarbon reserves in the Suzunskoye field

Table 4-9. Hydrocarbon reserves at the Tagulskoye field

Table 4-10. Oil, Gas and Condensate reserves of Yaraktinsky project

Table 4-11. Explored oil and free gas reserves at the Srednebotuobinskoye field (by Russian classification, as of October 01, 2010)  

Table 4-12. Hydrocarbon reserves in the Dulisma field (as of 01 01, 2011

Table 4-13. Hydrocarbon reserves in the Angaro-Lenskoye and Levoberezhnoye fields as of Jan 01, 2011.

Table 4-14. Recoverable reserves at Chayandinskoye field as of Jan 01, 2011.

Table 4-15. Sakhalin-1 hydrocarbon reserves (DeGolyer & MacNaughton, as of December 31, 2010)
Table 4-16. Sakhalin-1 operating activities

Table 4-17. Sakhalin-2 hydrocarbon reserves (as of January 01, 2009)

Table 4-18. Hydrocarbon production at Sakhalin-2

Table 4-19. Expected gas production in the Kirinskoye field

Table 4-20. Exploration activities at the Veninsky block of Sakhalin-3

Table 4-21. Exploration activities at the Kaygano-Vasyukansky block

Table 5-1. Oil producers in Eastern Siberia and the Republic of Sakha (Yakutia), thousand tons

Table 5-2. Major producers of gas in Eastern Siberia and the Republic of Sakha (Yakutia), mln cu m

Table 5-3. Oil producers in Sakhalin, thousand tons

Table 5-4. Major producers of gas in the Far East (Sakhalin), mln cu m

Table 5-5. Predicted oil production in Eastern Siberia and the Far East according to the Energy Strategy of Russia through 2030

Table 5-6. Resource base of prospective oil production centers in Eastern Siberia and the Republic of Sakha (Yakutia)

Table 5-7. Predicted gas production in Eastern Siberia and in the Far East according to the Energy Strategy of Russia through 2030

Table 5-8. Resource base of prospective gas production centers in Eastern Siberia and the Republic of Sakha (Yakutia)

Table 6-1. Reserves and production of hydrocarbons in China in 2010

Table 6-2. Energy production and consumption balance in China, mln tons of oil equivalent

Table 6-3. Oil import to China in 2010 (mln tons)

Table 6-4. APR-oriented Gazprom projects

Table 6-5. Production and Consumption of Gas in China, bcm

Table 7-1. Dynamics of Energy Consumption and of APR share in 2000-2011

Map 1-1. Logistics scheme for Vankor field

Map 2-1. Oil- and gas- bearing regions of Irkutsk region

Map 2-2. Oil and Gas fields of Irkutsk region

Map 2-3. Oil and Gas Resources of Krasnoyarsk territory

Map 2-4. Map of Far East Federal Okrug

Map 2-5. Oil and Gas Fields of Sakhalin

Map 3-1: Rosneft licensed sites adjacent to the Vankor field

Map 3-2: Rosneft fields in Krasnoyarsk Territory and Irkutsk Region

Map 3-3: Regional breakdown of Surgutneftegaz licenses (2010)

Map 3-4: Rosneft projects in the Far East

Map 3-5: License site of the Sakhalin-6 project

Map 4-1. Purpe-Samotlor Oil Pipeline

Map 4-2. Planed oil transportation from the Yurubcheno-Tokhomskaya Zone

Map 4-3. The Talakan Field

Map 4-4. Verkhnechonsky project

Map 5-1. Potential gas production centers

Map 5-2. Planned gas transportation infrastructure in the Irkutsk Region

Map 6-1. ESPO route

Map 6-2. Skovorodino – border of China Oil Pipeline

Map 6-3. ESPO expansion for oil supply to refineries in the Far East

Map 6-4. Turkmenistan – China pipeline

Map 6-5. Altai Gas Pipeline