The “Bazhenov formation” refers to a specific geological stratum identified in the centre of Western Siberia, running to depths of 2,000–3,000 metres. Estimates suggest that oil reserves at the Bazhenov reservoir could amount to as much as 100–170 billion tonnes in Western Siberia alone. The stratum covers an area of approximately one million square kilometres and is 10–100 metres thick. The Bazhenov Formation is classified as unconventional type of reserves, comprising what is known as “shale oil”, development of which currently awaits the selection of technological solutions for its full-scale development.

Gazprom Neft has already been investigating the Bazhenov Formation for several years, and has made significant progress in developing technologies for prospecting for and producing oil here. The most important results achieved in 2016 were obtained at the Palyanovsky license block in the Krasnoleninskoye field, Khanty-Mansi Autonomous Okrug, and at the Vyngayakhinskoye field, Yamalo-Nenets Autonomous Okrug. Project operations at these assets are continuing in 2017, with a well also being tested at the Salymskoye field to assess the geometric configuration of hydraulic fractures and to allow the construction of a geological model, allowing the optimum design of a multi-stage fracking well to be determined.

Gazprom Neft commenced its first project on the study of the Bazhenov formation in the Yamalo-Nenets Autonomous Okrug in late 2015, with fracking operations on Bazhenov deposits undertaken at the Vyngayakhinskoye field via one new appraisal and two directional wells, and oil inflow being achieved throughout. Appraisal wells were drilled for sampling and well-core analysis, and an extensive range of geophysical information recorded for detailed examination of the drill core and development of a geological model.

2016 saw the completion of the full development cycle at the Krasnoleninskoye field, Khanty-Mansi Autonomous Okrug, with two high-technology horizontal wells drilled for multi-stage fracking, achieving a commercial-inflow of 45 tonnes of oil per day. Total cumulative production at these wells has now reached 10,000 tonnes per month, proving the operational efficiency and technological effectiveness of the essential technology, as adapted for the Bazhenov Formation.