• 2 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 2 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 2 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 2 days Schlumberger Warns Of Moderating Investment In North America
  • 2 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 2 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 2 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 2 days New Video Game Targets Oil Infrastructure
  • 2 days Shell Restarts Bonny Light Exports
  • 2 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 2 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 3 days British Utility Companies Brace For Major Reforms
  • 3 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 3 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 3 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 3 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 3 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 3 days Rosneft Signs $400M Deal With Kurdistan
  • 3 days Kinder Morgan Warns About Trans Mountain Delays
  • 3 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 4 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 4 days Russia, Saudis Team Up To Boost Fracking Tech
  • 4 days Conflicting News Spurs Doubt On Aramco IPO
  • 4 days Exxon Starts Production At New Refinery In Texas
  • 4 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 5 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 5 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 5 days China To Take 5% Of Rosneft’s Output In New Deal
  • 5 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 5 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 5 days VW Fails To Secure Critical Commodity For EVs
  • 5 days Enbridge Pipeline Expansion Finally Approved
  • 5 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 5 days OPEC Oil Deal Compliance Falls To 86%
  • 6 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 6 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 6 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 6 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 6 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 6 days Aramco Says No Plans To Shelve IPO
Clashes In Kurdistan Send Oil Prices Higher

Clashes In Kurdistan Send Oil Prices Higher

Reports of skirmishes between Iraqi…

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