• 6 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Why hydrogen economics is does not work
  • 5 hours Starvation, horror in Venezuela
  • 22 mins The EU Loses The Principles On Which It Was Built
  • 7 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 2 hours Crude Price going to $62.50
  • 12 hours Anyone Worried About the Lira Dragging EVERYTHING Else Down?
  • 5 hours Chinese EV Startup Nio Files for $1.8 billion IPO
  • 17 hours Correlation does not equal causation, but they do tend to tango on occasion
  • 1 day California Solar Mandate Based on False Facts
  • 16 hours Oil prices---Tug of War: Sanctions vs. Trade War
  • 5 hours WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 1 day WTI @ 69.33 headed for $70s - $80s end of August
  • 16 hours Russia retaliate: Our Response to U.S. Sanctions Will Be Precise And Painful
  • 18 hours Monsanto hit by $289 Million for cancerous weedkiller

Gazprom Neft Launches World’s Northernmost Land Oilfield

Arctic Rig

Gazprom Neft launched commercial-scale production at the Messoyakha field, the northernmost land oilfield in the world, in the Russian Arctic. The field has swallowed US$1.3 billion in investments, and tax revenues from it are seen at some US$13.6 billion by 2040.

The field, which is being developed by Gazprom Neft in partnership with Rosneft, should yield some 600,000 tons of crude by the end of the year, equal to around 4.2 million barrels. Next year, the operators eye output of 3 million tons, to expand to 5.5 million by 2020. This would equal a daily production rate of 60,000 barrels in 2017 and 110,000 barrels in 2020.

The oil from the field, which is basically in the middle of nowhere in the northeastern Siberia region of Yamal-Nenets, will be pumped from 50 wells and fed into the Arctic-Purpe pipeline after being heated at the wellhead.

The output from Messoyakha will add to Gazprom Neft’s annual estimated output of 59 million tons of oil and condensate this year, and the planned 62 million tons next year. This, Reuters notes, is more than what Algeria is currently producing.

At the same time, the output from Messoyakha will help maintain an already record-breaking national production rate, which passed the 11-million-bpd on September 8. Average oil production in Russia is estimated to continue at this level until the end of the year, with ambitions to reach 11.1 million barrels daily.

While this will solidify Russia’s place as the world’s number-one oil producer, it reinforces questions about the point of any production freeze that might be agreed by OPEC and Russia next week in Algiers.

Deputy Energy Minister Kiril Molodstsov said earlier today that “in theory” the country could cut its daily output by 5 percent, adding that this option has been discussed with local oil companies. However, he noted that no formal agreement had been reached with any of them.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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