• 30 mins Bidding Action Heats Up In UK’s Continental Shelf
  • 6 hours Keystone Pipeline Restart Still Unknown
  • 10 hours UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 12 hours Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 14 hours Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 15 hours German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 17 hours Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 18 hours Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 1 day Oil Prices Rise After API Reports Major Crude Draw
  • 2 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 2 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 2 days Statoil Looks To Lighter Oil To Boost Profitability
  • 2 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 2 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 2 days Whitefish Energy Suspends Work In Puerto Rico
  • 2 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 2 days Thanksgiving Gas Prices At 3-Year High
  • 2 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 2 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 3 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 3 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 3 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 3 days ConocoPhillips Sets Price Ceiling For New Projects
  • 5 days Shell Oil Trading Head Steps Down After 29 Years
  • 5 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 5 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 6 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 6 days Venezuela Officially In Default
  • 6 days Iran Prepares To Export LNG To Boost Trade Relations
  • 6 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 6 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 6 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 6 days Rosneft Announces Completion Of World’s Longest Well
  • 7 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 7 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 7 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 7 days Santos Admits It Rejected $7.2B Takeover Bid
  • 7 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 7 days Africa’s Richest Woman Fired From Sonangol
  • 7 days Oil And Gas M&A Deal Appetite Highest Since 2013
Alt Text

Don’t Back U.S. Shale To Keep Oil Prices Down

The common assumption that U.S.…

Alt Text

Tesla To Spike, Then Crash

Electric car giant Tesla is…

Alt Text

The Undisputed Leader Of Tomorrow’s Oil & Gas Markets

According to the Executive Director…

Shell, Gazprom Neft Eye Siberia’s Bazhenov as Next Bakken

Shell, Gazprom Neft Eye Siberia’s Bazhenov as Next Bakken

A joint venture between Shell and Russia’s Gazprom Neft has begun drilling in a Siberian shale formation that is believed to hold one of the world’s largest shale oil deposits.

The joint venture, Salym Petroleum Development (SPD), is eying the Bazhenov shale as a play potentially similar to the highly prolific Bakken shale in the US.

The Bazhenov is located in Western Siberia, and covers 2.3 million square kilometers or 570 million acres, which is the size of Texas and the Gulf of Mexico combined, an area 80 times bigger than the Bakken.

Related article: Iran, Russia Ruffle US Feathers with Oil Swap Deal

The drilling announcement follows a memorandum signed in April last year to explore and develop shale oil and Arctic offshore projects in Russia.

Oleg Karpushin, SPD’s chief executive officer, said the appraisal program will give his company an edge in developing hard-to-recover resources.

"We hope that the pilot project will allow us and our shareholders to make a decision about moving to a large-scale development," he said.

SPD said it plans multi-stage fractures of all five wells in Upper Salym, West Siberia in a bid to tap shale oil potential in the prospective Bazhenov formation.

The first horizontal well follows three years of study on the prospect, which included three vertical wells, 3D seismic, coring and well logging in the Upper Salym area.

Related article: Russian Rosneft to Acquire Morgan Stanley Unit

The Bazhenov layer has attracted Shell and Exxon because it is said to be similar to the Bakken shale, a key venue behind the North American shale boom.

Exxon will also start a $300 million pilot project drilling in a different part of the Bazhenov with Russia’s Rosneft this year.

The Bazehnov region has many cracks and fractures which could make its oil flow more readily, and therefore production could come in at a lower cost. So far, test wells in the region have operated at 400 barrels per day, on line with Bakken test well averages.

Moscow has introduced tax breaks to incentivize exploration of the Bazhenov and other shale plays.

By. Charles Kennedy of Oilprice.com




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News