Gazpromneft-Khantos, asubsidiary ofJSC Gazprom Neft, has been granted alicence tocarry out geological exploration ofthe deep oil-saturated prospective horizons inthe Achimovskaya and Bazhenovskaya formations ofthe southern Priobskoye field.

Hydrocarbons atdepths of2,500–2,700 metres are difficult torecover due tothe poor filtration properties ofthe reservoir rocks.

In2014, work will include analysis ofexisting geophysical data, core analysis, re-interpretation of3Dseismic survey data and development ofaconceptual geological model ofdeep horizons inthe South Priobskoye field. Itisexpected that by2015, itwill already bepossible toidentify the sectors with the best prospects for exploratory well drilling and toselect the most appropriate technology for developing these prospects.

Exploration ofthe Bazheno-Abalaksky complex inthe South Priobskoye field will becarried out with support from Schlumberger. Atthe beginning of2014, JSC Gazprom Neft and Schlumberger signed anagreement toexpand technological cooperation to achieve greater efficiency inthe development ofhard-to-extract reserves, mainly shale oil. Asatechnical partner, Schlumberger will provide JSC Gazprom Neft with proven technical solutions backed bythe experience and expertise ofboth Russian and international unconventional resource experts from the oilfield services company.

“Advances intechnology mean that oil companies are now able todevelop reserves which inmany cases were regarded asunrecoverable just afew years ago. JSC Gazprom Neft isnow inaposition toproactively develop both hard-to-extract and unconventional reserves, including the Bazheno-Abalaksky complex horizons. Byusing cutting-edge technology, weare constantly developing our experience and expertise. For example, over the last two years, JSC Gazprom Neft has increased its overall proportion ofhigh-tech wells from4% to35%, becoming one ofthe leading Russian oil and gas industry companies inthis sector**”, said Vadim Yakovlev, First Deputy CEO ofJSC Gazprom Neft.

*Shale oil iscontained inthe Bazhenovskaya, Abalakskaya, and Frolovskaya rock formations inWestern Siberia, which have super-low permeability and ahigh level ofoil saturation.

**In2013, JSC Gazprom Neft drilled over 230 horizontal wells, more than twice asmany asduring the previous year. The number ofwells drilled using multistage hydraulic fracturing (fracking) increased bymore than afactor offive, uptoalmost 150wells. Atotal of24simultaneous horizontal wells were drilled, compared with just five in2012.

Todate, JSC Gazprom Neft isworking onthree projects involving shale oil deposit exploration. The first isinthe Palyanovskaya zone ofthe Krasnoleninskoye field (also being developed byGazpromneft-Khantos). Inspring 2013, tests were completed onthe development well drilled tostudy the Bazheno-Abalaksky horizon. The well produced anoil flow atarate of80cubic metres per day. The second stage ofthe exploration programme includes the drilling offour inclined wells todepths of2,700–2,800 metres byautumn 2014. JSC Gazprom Neft isalso gaining experience inthe development ofsimilar reserves through a50/50 joint venture with Shell: Salym Petroleum Development (SPD). InJanuary, SPD announced that ithad begun todrill its first horizontal appraisal well to explore the Bazhenovskaya formation inthe Upper Salym field. In2014–2015, SPD plans todrill atotal offive similar wells using multistage hydraulic fracturing technology. Moreover, in2013, asecond joint venture between JSC Gazprom Neft and Shell was created: the Khanty-Mansi Oil and Gas Union (St. Petersburg). The company will carry out new shale oil deposit exploration and development projects inthe Khanty-Mansi Autonomous Area. In2014, the company acquired the rights tocarry out geological exploration inthe Yuilsky-4, Yuilsky-5, and South Lungorsky-1 sectors ofthe Khanty-Mansi Autonomous Area.

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