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GAZPROM

October 17, 2007

On meeting dedicated to development of Bovanenkovsko field and Bovanenkovo-Ukhta gas main system

Today in Nadym Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee has moderated a meeting dedicated to facilities construction for the Bovanenkovo oil and gas condensate field, Bovanenkovo-Ukhta gas main system and Ob-Bovanenkovo railroad.

Attending the meeting were heads of the Gazprom core business units, heads and specialists of the Company’s subsidiaries and representatives of the Yamal-Nenets Autonomous Okrug Administration.

“Yamal acquires colossal natural gas reserves enabling to utilize the Peninsula as the major gas production region in 21st century. Therefore, the Bovanenkovo field is a key element for the Unified Gas Supply System development in a long-term perspective,” said Alexander Ananenkov, while opening the meeting.

The meeting examined issues related to the Bovanenkovo oil and gas condensate field pre-development, progress with preparing the project documentation for development of the Cenomanian-Aptian deposits of the Bovanenkovo field, construction schedule execution and well commissioning in the field, progress with the infrastructure and Bovanenkovo-Ukhta gas main system, status of the Bovanenkovo-Ukhta gas main system investment project execution as well as progress with constructing the Ob-Bovanenkovo railroad.

The participants discussed also the possibility of the Russian enterprises to provide services and production of pipe products, walving, equipment and materials for the Bovanenkovo field pre-development.

The meeting resulted in decisions to complete development of the comprehensive documentation, major infrastructure engineering activities, construction and production of equipment for field development in the Yamal Peninsula and gas transportation utilizing domestic technologies, materials and equipment.

Reference:

In January 2002, the Gazprom Management Committee identified the Yamal Peninsula as a region of Gazprom’s strategic interest. Commercial development of Yamal fields will help build up local gas production to 250 bcm/y. Accessing Yamal is of principled significance for securing gas extraction growth.

Yamal has seen the discovery of 11 gas and 15 oil and gas condensate fields with the total recoverable gas, condensate and oil reserves of 10.4 tcm, 228.3 mln t and 291.8 mln t, respectively. The combined reserves of Yamal’s largest fields, namely the Bovanenkovo, Kharasavey and Novoportovskoye fields operated by Nadymgazprom (a wholly owned subsidiary of Gazprom), account for 5.9 tcm of gas, 100.2 mln t of condensate and 227 mln t of oil.

The Cenomanian-Aptian deposits of the Bovanenkovo field are a paramount development target on Yamal.

The Substantiations of investment in supporting and gas transmission facilities of the Yamal Peninsula based Bovanenkovo field were developed by VNIPIgazdobycha. The Substantiations cover the capacity commissioning sequence, gas extraction dynamics, general transmission route and gas main construction scheme.

115 bcm/y of projected gas production from Bovanenkovo is anticipated to increase to 140 bcm/y in the long-term. In order to deliver the extracted gas to the UGTS, it is necessary to build a 2,451-km-long gas transmission network including a new 1,100-km-long transmission corridor from Bovanenkovo to Ukhta.

The Substantiations have received all government and expert approvals required by the existing RF legislation. All expert reports point to the expediency of executing the development project for the Bovanenkovo field and construction project for a gas transmission network from Yamal.

In October the Gazprom Management Committee has reviewed the progress with the development of the Substantiations of investment in supporting and gas transmission facilities of the Yamal Peninsula based Bovanenkovo field and ordered to initiate the investment stage of the Bovanenkovo oil and gas condensate field development and gas main network construction.

The Gazprom core business units were tasked with bringing onstream in the 3rdQ of 2011 first 15 bcm/y upstream facilities for the Cenomanian-Aptian deposits of the Bovanenkovo field as well as a Bovanenkovo – Ukhta gas main system.

The Ob-Bovanenkovo railroad is partly commissioned. En-route construction and installation activates are progressing on schedule. Construction of linear part, bridges, distribution lines and communication facilities crossing the Yubiley River is in progress.

 

 

 

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