Rosneft Launches Vankor Field in East Siberia, aiming for China, Rosneft
Release Date: 2009-08-26
The Vankor oil and gas field in East Siberia was officially launched into commercial production, on August 21 in Turukhansky District (Krasnoyarsk Territory), state-run oil giant Rosneft said in a statement. The launch of Vankor represents the first step in Rosneft's plans for the development of the East-Siberian oil and gas province, which aims to suply Asia, mainly China and Japan, with oil once the East Siberia – Pacific Ocean pipeline (ESPO) is up and running.The ceremony was attended by Russia's Prime Minister, Vladimir Putin, the country's Minister of Energy, Sergey Shmatko, the Governor of Krasnoyarsk Territory, Aleksandr Khloponin, and the President of Rosneft, Sergey Bogdanchikov, as well as representatives of other Russian ministries, Rosneft subsidiaries and partners.
The delegation inspected industrial facilities at the field before the ceremony and were given a brief on the Vankor project's main indicators and future plans by Rosnefts boss Sergey Bogdanchikov.
Vankor is an integral development project for East Siberia and the Far East of Russia. Oil from the field will be the main contributer to the East Siberia – Pacific Ocean pipeline. The ESPO is currently under construction and its China branch will be completed next year, partly thanks to a deal struck by Rosneft and the Chinese Government last February to finance the works in exchange for guaranteed oil supplies for the next 20 years.
Chinas state company Petrochina has reportedly begun expanding its Liaoyang refinery, near the Russian border, to be ready to absorb further deliveries of Russian oil from 2010.
The ESPO will also be the primary feedstock for a unique petrochemical complex planned for construction in the Russian Far East.
Development of the field, which currently has estimated recoverable reserves of 520 mln tonnes (3.8 bln barrels) of oil and 95 bln cubic meters of gas, is being carried out by a Rosneft subsidiary, Vankorneft. Daily oil production at the field is currently 18,000 tonnes (130,000 bpd) and will increase to 30,000 tonnes (220,000 bpd) by the end of the year. Total production in 2009 is expected to reach 3 mln tonnes (22 mln barrels). Annual peak production is estimated at 25.5 mln tonnes (510,000 bpd) of oil. Crude oil produced at the field is transported via the 556-kilometer Vankor – Purpe oil pipeline in Yamalo-Nenets Autonomous District, connecting to the Transneft pipeline system.
Vankor is one of the largest industrial projects in Russia. A total of 1,685 infrastructure facilities had been installed by the time of field launch. Facilities include a unique oil treatment line, with 7 million tonnes annual capacity, a 200-megawatt gas turbine power station, and reservoirs to hold 140,000 cubic meters of crude oil.
The project has fundamental importance both for development of the oil and gas industry and of the Russian economy at large. More than 80% of equipment bought for the project was made in Russia. More than 450 contractors and sub-contractors have been brought in to work on the project, and 12,000 construction workers and 2,000 vehicles were employed at the peak of construction work. Overall tax payments during the project's lifetime will amount to 4.5 trillion roubles at an estimated oil price of USD 60 per barrel.
The development licence for the Vankor field was obtained by Rosneft in 2003 as the result of a public bid on the London Stock Exchange to buy shares of an Anglo-Siberian Oil Company. It was the first such deal by a Russian company.
| Type: | NORMAL |
| Company: | Rosneft |
| Country: | Russian Federation |