Tag Archives: ESPO

‘Power of Siberia’ gas pipeline construction commencement date has been announced

The construction commencement date for the ‘Power of Siberia’ gas pipeline that will run across Eastern Siberia into China has been announced. As confirmed by several sources in the industry, the commencement ceremonyPower of Siberia is scheduled to be held in the city of Yakutsk on September 1, 2014.

Gasprom previously planned to start the pipeline construction in the summer of 2014. In fact, in the middle of June the President of the company Alexey Miller stated that the first pipeline joint would be welded “as early as August”. Direct supplies of gas to China should start in 2019.

The ‘Power of Siberia’ gas transmission system is intended for gas delivery from the Irkutsk Region and Yakutia gas production centres to Vladivostok in the Russian Far East and China. The approximately 4,000 km 56-inch gas pipeline with an annual throughout of 64 Bcm/a will be constructed along the existing ESPO oil pipeline. The branch to China will run via the border city of Blagoveschensk. The 30-year contract to supply 38 Bcm/a of gas to China was signed between Gazprom and CNPC on May 21 2014 after 10 years of negotiations.

Image: the ‘Power of Siberia’ gas pipeline marked by red dash line (gazprom.ru).

New oil discovery in Irkutsk Oblast

As reported in Rosneft’ press release published on the corporate web site on 20 August 2013, a new oil and gas play was discovered on Mogdinsky license block located in the northern part of Irkutsk Oblast 160km north of ESPO.

According to the release the exploration well Mogdinsky-10 produced free-flowing gas condensate at the rate of 425 K m3/day and oil – 90m3/day in the course of testing Lower Ustkut horizon.

The well location was selected based on the fundamentally new geological model created by Rosneft’s subsidiary  RN Exploration LLC, which enabled Rosneft to tap a hydrocarbon deposit that was not encountered before.

The play’s reserves are estimated at over 4 mln. tonnes of oil and 2 bln. m3 of condensate.

Another discovery from the same horizon was made on Danilovo block where well No. 73 produced free-flowing oil at 165m3/day during the well test, which proves soundness of the new 3D seismic data-based geological model.

Original article at http://www.rosneft.ru/news/news_in_press/20082013.html