OREANDA-NEWS. October 13, 2008. The Company launched 1,100 km Talakan – Ust-Kut – Taishet section of the East Siberia – Pacific Ocean (ESPO) pipeline in a reverse mode, reported the press-centre of Surgutneftegas.

Igor I. Sechin (Deputy Prime Minister of the Government of the Russian Federation), Sergei I. Shmatko (Minister of Energy), Nikolai P. Tokarev (President, OAO “AK “Transneft”) and Vladimir L. Bogdanov (Director General, OJSC “Surgutneftegas”) gathered to hold the ceremony of opening the pipe valve and starting delivery of the Talakan oil via main pipeline.

In fact, the ceremony marked the beginning of commercial production from the Talakanskoye oil-gas condensate field. The first oil will be delivered by the Company’s pumping station until OAO “AK “Transneft” commissions its NPS-10 station (Oil Pumping Station No. 10).

Currently, the Talakanskoye field produces 4,000 tons of oil per day from 52 operating wells.

In 2009, the Company plans to produce almost 2 mn tons of oil.

Celebrating the discovery of a new petroleum province, sixty employees of OJSC “Surgutneftegas” were given highest national awards for their remarkable achievements and outstanding services to the industry.

Recognizing valuable contribution, Deputy Prime Minister Igor I. Sechin gave his compliments to Surgutneftegas people:

“You have delivered stunning results in an exceptionally short period of time. And there are proper words which can describe it – you have performed feats of labor”.   
     
Vladimir L. Bogdanov, Director General of OJSC “Surgutneftegas”, considers the Talakanskoye field start-up a historic event: 

“We are witnessing remarkable events as we had the honor of pioneering commercial development of oil and gas fields in Eastern Siberia.

Today, looking back into the past, we can truly appreciate this colossal achievement – we have built strong field infrastructure in the wilderness area of taiga during less that three years employing brand new technologies and world’s most advanced technical expertise.

Surgutneftegas together with Transneft have achieved significant milestones. However, we know we still have a lot more to do in the future and the momentum we have already gained will certainly help us attain our challenging objectives”.
 
Background :
In the period of 2004-2008, the Company’s expenditures on the region’s development amounted to RUR 102 bn, and were connected with prospecting and production drilling, construction of Vitim - Talakanskoye field road, electric power lines, pipelines, up-to-date riverside terminal, stock tank, support bases, as well as with social projects development.

In 2004-2008, prospecting drilling volumes reached the level of 92.8 thous. running meters, there were constructed 47 exploration wells.

The Company has developed three oil fields – Verkhne-Peleduyskoye, Severo-Talakanskoye, and Vostochno-Alinskoye. In 2004-2008, expenditures on prospecting works amounted to RUR 10.5 bn.

At present, over a thousand units of equipment, 18 drilling rigs are put into operation at the Talakan, another 14 drilling rigs are purchased and in the fourth quarter of 2008 the rigs will go into production. Fifty two producing oil wells and two gas wells are put onstream at the Talakanskoye field.

Owing to the lack of power generation, OJSC “Surgutneftegas” implements its own energy program to carry out production works, and constructs power stations providing nearby regions with electric power and benefiting to their development. The energy program comprises a commissioned gas piston power plant with a capacity of 12 MW, a newly constructed gas-turbine power plant with a capacity of 96 MW, the third line of gas-turbine power plants with a capacity of 48 MW under construction, and a gas compressor station.

The construction of an asphalt concrete plant will provide further road network development at the Talakan field.

A loading terminal, designed for two barges and allowing to handle almost 3 thous. tons cargo/day was constructed and put into operation in Vitim.

In 2004-2008, oil output at the Talakan totaled 1.4 mn tons, and in 2009-2014 oil production is planned to increase up to 21.1 mn tons. Since 2016 annual oil output will be 6 mn tons or more.

In the period of 2009-2014, the Company plans to invest about RUR 276 bn in the development of oil–and-gas producing sector in Eastern Siberia.

In 2009, it is planned to put onstream the Alinskoye field. The construction of 30 km capital road from the Talakanskoye to Alinskoye field, of power supply line with a capacity of 35 kW, booster pump station, and pipelines will be brought to a close by the end of 2008.

To increase its raw material base, OJSC “Surgutneftegas” continues to expand its presence in Sakha (Yakutia), and is currently working at 12 license areas. The Company is upgrading its raw material base in Eastern Siberia. In 2008, aside from 12 licenses in the region the Company has obtained 4 new areas and 2 licenses for oil fields discovered in 2007 - Vostochno-Alinskoye and Severo-Talakanskoye.

Together with the production infrastructure development the Company continues building social facilities. This June saw the groundbreaking ceremony to mark construction of a Vitim school for 700 students to be financed on a parity basis by the Government of the Republic of Sakha (Yakutia) and Surgutneftegas. To this end, the Company has already granted RUR 100 mn, and the additional RUR 106 mn are to be provided in December.

On October 04, 2008, the solemn ceremony was held to launch the construction of a Vitim kindergarten for 240 kids to be also financed by both the Government of the Republic of Sakha (Yakutia) and Surgutneftegas.

Within 2004-2008, we have spent RUR 447.3 mn to support social programs in the Republic of Sakha (Yakutia). The total expenditures on social activities including social payments, maintenance of community infrastructure and facilities, and social programs support amounted to RUR 2 bn. In 2009-2014, the Company plans to spend RUR 6.4 bn on social projects.

In terms of significant contribution to regional and local budget, Surgutneftegas is second only to ALROSA Company Limited. Thus, in the year-end, the total volume of payments is expected to reach RUR 4.8 bn. The amount is expected to grow due to production infrastructure development, increase of drilling and production volumes, new oilfield construction and as a result, – creation of permanent work places.

Besides, the Company’s orders connected to exploration activities in Eastern Siberia triggered additional opportunities to develop scientific potential.

Today, Surgutneftegas is cooperating with 15 scientific-research institutes and 20 design institutes of Krasnoyarsky Krai, Omskaya, Tyumenskaya, Irkutskaya Oblasts and other regions.

Over 1,000 enterprises of engineering and defense industries, forestry and building sector are engaged in filling the Company’s orders.

All of that appears to be a strong impetus for Surgutneftegas to provide new work places and increase tax payments to the budgets of all levels that in turn can produce higher living standards across many Russian regions.

Today, the top managers of OJSC “Surgutneftegas” believe that the Company has all grounds for making “great discoveries” in Eastern Siberia which is to become a key oil and gas producing region of the country.