VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN

Visits within Russia

28 october, 2010 13:50

Reference materials for the meeting held to discuss the Draft General Development Plan for the Oil Sector Through 2020:

The oil sector: current status and prospects

According to international analysts, Russia's oil reserves are among the world's ten largest, smaller only than those of the Middle Eastern countries and Venezuela.

Of the 2,750 explored oil deposits in Russia, 1,580 are producing commercial oil and account for 78% of the country's oil reserves.

The recoverable reserves of nearly all of the deposits located in the old oil-bearing regions in the Caucasus, the Urals-Volga area and West Siberia have been depleted by more than 60%.

Active fields contain a third of all explored reserves; 67% of them are reservoirs that are costly to extract, including 13% with heavy oil, 36% are tight reservoirs, 4% thin layers, and 14% are subgas reservoirs.

Oil is one of Russia's largest export items. Russia's largest clients are European and Asian-Pacific countries. The construction of new pipelines, in particular the East Siberia-Pacific Ocean (ESPO) pipeline, the BPS-2 Baltic Pipeline System, and a branch from Skovorodino to China, has allowed it to diversify oil export routes.

Draft general plan for oil sector development

Acting in compliance with government instructions, the Energy Ministry has submitted a draft general strategy for the development of the oil industry through 2020.

The strategy was drafted with due account of the Russian Energy Strategy until 2030 and the development strategies of the country's key industries.

The draft provides for comprehensive development of the industry's subsectors, notably geological exploration, development of oil an gas condensate fields, the utilisation of associated petroleum gas (APG), the sale of oil and petrochemicals, the processing of crude oil, and the transportation infrastructure. Its objective is to determine the conditions necessary to ensure the best possible budgetary and economic effect in the oil industry and the key spheres of its development through 2020 in terms of deposit location in the regions, timeframes and the main investment projects.

The strategy also includes the forecasts of changes in domestic and foreign oil and petrochemical markets and estimates of oil, gas condensate and APG production with due consideration for profitable production at active fields and new projects attractive to investors.

The draft is aimed at synchronising exploration projects and the commissioning of new fields with the development of the pipeline infrastructure and oil refining assets.

It also stipulates measures to enhance the efficiency of the oil refining sector, including new technology, cutting the export of fuel oil and the subsequent processing of surplus fuel oil into jet and diesel fuel, reducing energy consumption, and resolving the environmental problems of the refining sector.

The implementation of the strategy should ensure the production of 505 million tonnes of liquid hydrocarbons by 2020, increase the degree of oil conversion to 85% while maintaining refining at 230-240 million tonnes, ensure comprehensive development of oil-producing regions and create new jobs in the oil, construction and related industries.

The Pur-Pe-Samotlor oil pipeline

The Pur-Pe-Samotlor oil pipeline is part of the oil pipeline running from Zapolyarye to Samotlor via Pur-Pe and is designed to transport oil from the oilfields in the Yamalo-Nenets Autonomous Area and the north of the Krasnoyarsk Territory to oil refineries in Siberia and for export through the East Siberia-Pacific Ocean pipeline.

The 429-km (267-mile) pipeline runs across the Yamalo-Nenets and the Khanty-Mansi autonomous areas. Construction began in March 2010 and should be completed in 2012. The pipeline's throughput capacity will be 25 million tonnes a year at the first stage and up to 50 million tonnes when it reaches its designed capacity.

Angarsk Refinery

The Angarsk Refinery produces petrochemicals and raw materials for the petrochemical sector. Its main assets were built and commissioned between 1960 and 1985. State-run oil producer Rosneft acquired it in May 2007.

The crude oil distillation capacity of the refinery is about 11 million tonnes a year and the depth of conversion is 76%. The refinery processes oil supplied from West Siberian fields through Transneft's pipelines into more than 200 types of products. It ships its products by rail.

The Angarsk Refinery processed 9.526 million tonnes of oil in 2008, 9.534 million tonnes in 2009, and 6.591 million tonnes in January-August 2010.

Yuri Korchagin Field

The Yuri Korchagin field was discovered by LUKoil in 2000. It is located in the north of the Caspian Sea, 180 km (112 miles) from Astrakhan and 240 km (149 miles) from Makhachkala, at a depth of 11-13 metres. The field's 3P reserves exceed 270 million barrels of oil.

Commercial production at the field began on April 28, 2010, in a ceremony attended by Prime Minister Vladimir Putin. Since then, the field has yielded 27,500 tonnes of oil.

Baltic Pipeline System BPS-2

The project to build the second leg of the Baltic Pipeline System, BPS-2, was launched in June 2009. It should be completed in 2012.

The 1,000-km (622-mile) pipeline runs from the Unecha junction of the Druzhba pipeline near the Russia-Belarus border across the Bryansk, Smolensk, Tver, Novgorod and Leningrad regions to the Ust-Luga  terminal on the Gulf of Finland with 172-km (107-mile) long branch line to the Kirishi oil refinery.

Its throughput capacity will be 30 million tonnes annually at the first stage and 38 million tones when it reaches the designed capacity.

The welding and assembly stage of the project is 99.6% complete and the pipe-laying and backfilling work 96%. Hydraulic tests have been held at 569 km (354 miles) of the pipeline and flaw detection procedures at 486 km (302 miles).

Taneko

The Taneko project under way in Nizhnekamsk, Tatarstan, consists of three plants: an oil refinery, a deep processing plant, and a petrochemical plant, which own 27 licensed technologies.

Its designed capacity is 7 million tonnes of crude oil a year. The planned degree of conversion is 97%.

The land-to-building ratio of the 396-hectare land plot is 61%.

The first startup group of assets includes 4 refining units, 216 infrastructure and 8 off-site facilities. The on-site and off-site facilities are ready for start-up, the water treatment facilities and the air compressor plant are ready for testing systems and equipment, and the facilities have been connected to the electricity network. The gas pipeline, the external steam pipe line and the heating plant have opened.

The refinery will receive the first batch of crude oil in late October.

Vankor

Commercial oil production at the Vankor oilfield, located in the Krasnoyarsk Territory, East Siberia, began in August 2009. The field's recoverable reserves are estimated at 524 million tonnes (3.8 bln barrels) of oil and 106 billion cubic metres of natural gas. Daily production is 36,000 tonnes of oil. The planned annual production is 12.5 million tones of oil in 2010.

Twelve well crews are working at 114 wells grouped into 14 multiple-well platforms.

A 578-km (359-mile) pipeline from Vankor to Pur-Pe with an annual capacity of 25 million tones and two pumping stations along the route and a third one in Pur-Pe, where it connects to Transneft's ESPO pipeline, was commissioned in August 2009.

Project operator Vankorneft, an upstream unit of Rosneft, had 2,274 employees as of October 21, 2010.