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16-18 June 2020 • Moscow • Crocus Expo

5 must-see Russian oil & gas projects for 2019

With a fresh year comes a fresh look at more Russian oil & gas projects. With Russia spending over $160bn on capex by now until 2025, there is plenty in the pipeline to get excited about. Some 29 new developments are slated to begin over the next six years, highlighting the mid-term potential, and continued investment opportunities, Russia holds.
5 must-see Russian oil & gas projects for 2019

5 of Russia’s most exciting oil & gas projects


Sakhalin III

Sakhalin III offshore rig
Image: © Gazprom
Cost: $9bn
Timeframe: Present-2023
Sakhalin Island on Russia’s Pacific coast is a hotbed of LNG activity. Several gas fields are serviced by Gazprom’s existing Sakhalin gas trains and hubs, but further development is coming to extract more of the region’s gas bounty.
Adding a further train to the existing Sakhalin facilities has been Gazprom’s agenda for the last decade. Now, it looks like things are progressing towards that direction. The Yuzhno-Kirinskoye feed field is actively being developed.
First gas is expected for delivery by 2023. Expected output from Yuzhno-Kirinskoye is an estimated 21bn cubic metres per year. Total yield from its C1+C2 reserves total in at 711.2bn cubic metres of pure gas, with additional recoverable condensates weighing in at 111.5m tons. Recoverable oil adds further weight to Gazprom’s field development activity – about 4.1m tons worth.

Rosskoye field

Image: © Gazprom
Cost: N/A
Timeframe: Present-2023
Rosneft had a bumper year, profits-wise, in 2018. $3.6bn in profit entered the Russian NOC’s coffers, which is being transformed into capex on some Siberian sites worthy of extensive development. Rosskoye is one of those fields.
It’ll be a challenge to truly wring the most of Rosskoye. Its shallow, low-pressure reservoir, coupled with the high-viscosity of recoverable oil, could potentially prove tricky for Rosneft to extract. However, with extra cash from higher oil prices and increased production output, Rosneft, financially, is well poised to go the extra mile on this particular field.
China’s Sinopec is Rosneft’s partner at Rosskoye, building on historic cooperation from previous projects like Sakhalin and Udmurtneft. Together, Rosneft and Sinopec are expected to enjoy easier financing, technology procurement and project implementation.
Rosskoye represents a new drive for Rosneft to boost production volumes. Once Rosskoye comes online, alongside further projects, an additional 5% output bump is forecast.

Chayandizkoye Field

Chayandizkoye Field
Image: © Gazprom
Cost: $13.8bn
Timeframe: 2015-present
Russia’s Power of Siberia pipeline has been fully built and is ready to accept product from across Yakutia, Eastern Siberia, from Gazprom’s extensive acreages. Chayandizkoye Field will be one of the prime feed territories for the pipeline, as well as being a key source of moveable product via the $24bn Yakutia-Khabarovsk-Vladivostok pipeline.
But what of the field itself? Holding reserves of in the region of 1.4 trillion cubic metres of natural gas, and a further 76.7m tons of oil and gas condensates, the field’s riches are extensive to say the least. Annual output is designed to hit 25bn cubic metres of gas annually – perfect for keeping up Gazprom’s 30-year, $400bn supply deal with China’s CNPC.
As of August 2017, pre-development works at Chayadizkoye were complete. Drilling of gas wells, as well as construction of the gas treatment unit and other infrastructure facilities, is underway. Follow up exploration of the field’s oil rim is also set to start soon. 
Gas production is scheduled to begin simultaneously with the Power of Siberia’s transmission date: December 20 2019.

Baltic LNG

LNG Vessel
Cost: $18.5bn
Timeframe: 2012-Present
A long gestating project, this LNG Hub in Russia’s Baltic Sea territories in Leningrad looks set to boost gas supplies across the Atlantic and to Europe. However, its future hasn’t always been certain, but chief partners Shell and Gazprom announced in May 2018 that this was still going ahead.
Indeed, if it wasn’t going forward, why did Japan’s Mitsui sign Memorandums of Understanding on project cooperation in September 2017? Costs may have ballooned from around £3bn to over $18bn, but the main partners have not been dissuaded from pressing ahead.
The make-up of the Baltic LNG’s infrastructure has changed during the project’s various tribulations. Final plans incorporate a two-train facility with an annual capacity of 10m tons of LNG. The option for the addition of a third train, taking capacity up to 15m tons a year, has been added too.

Prirazlomnoye Field

Image: © Gazprom
Cost: N/A
Timeframe: Ongoing
The future of Russia’s oil & gas industry may lie offshore in the Arctic’s frigid waters. Prirazlomnoye Field, currently the only offshore operation in the Russian Arctic, highlights how such developments can prove a big success.
Production has been steadily rising since first oil in 2013. Taking a look at 2017’s numbers shows Prirazlomnoye output at 2.6m tons. 2018’s estimated production volume looks like 3.6m tons of oil, whereas 2020’s forecasts suggest 5m tons will be extracted from the Pechora Sea’s 70m tons.
Further expansion is on the way. 4 new wells were commissioned in 2017. By 2020, as many as 20 wells will have been dug here. That’s part of a long-term expansion programme. Gazprom Neft, the field’s operator, is coming.
Offshore Project Development Andrei Patrushev said in an interview with Platts that exploration of the field's deeper layers is coming. 
"According to the company's preliminary estimates, this project, which is scheduled for 2024-2026, can increase the total volume of production at the field by 1.1 million tons," Patrushev said.

Russian projects generate demand for oil & gas equipment

With projects like the above, and many more slated to kick off over the next six years, Russia is set to generate more demand for oil & gas equipment, machinery and services. The opportunities are rife throughout the world’s largest country.
Discover them at MIOGE.

MIOGE 2019: Russia’s no.1 international oil & gas equipment exhibition

The Moscow International Oil & Gas Exhibition is the meeting place for the international community and Russia’s oil & gas industry. Over 560 companies trust the show to let them meet and do business with representatives from across the value chain.
Here, you’ll meet the players behind the Russian oil & gas projects listed above, as well as getting details on Russia’s project landscape from to 2025 and beyond. 
Find procurement, engineering and purchasing specialists exclusively at MIOGE.
Russian majors, including Gazprom, Tatneft, Rosneft and Lukoil, attend the show every year. Why? To meet new partners and suppliers of in-demand oil & gas equipment and technology.
To reserve a stand, click here.
Want more information on how MIOGE can help grow your business in Russia’s enormous oil & gas industry? Contact our team today.