What is the Vankor deposit?
The Vankor oil and gas deposit, located in the Krasnoyarsk Territory, is one of the largest in the Russian Federation. Along with other nearby deposits, it is the part of the Vankor oil and gas basin, which is the first such area to be discovered and exploited in post-Soviet Russia.
The deposit is being developed by the Rosneft's subsidiary company Vankorneft, which has a development license for Vankor.
The Vankor deposits, as well as other deposits in Eastern Siberia, will replace the depleted reserves of traditional oil production areas to considerably boost the long-term oil production growth in the Russian Federation. . In particular, it will compensate for deposits in Western Siberia, which now account for 70% of the oil produced in Russia.
In addition, the Vankor group of deposits, which forms (group forms) the Vankor project, will be the main supplier to the strategic Eastern Siberia-Pacific Ocean (ESPO) pipeline, which is currently under construction. The pipeline is of tremendous importance for the energy security of Russia and Asia-Pacific countries, as its construction, or rather the oil it will transport from Vankor, will help to reestablish the economic unity of Russia's regions and integrate the economies of Eastern Siberia, the Far East and Asia-Pacific countries.
The Vankor deposit was discovered in 1988. At the time, experts estimated its hydrocarbon reserves at 125 million tons and that peak production would reach 12 million tons a year. Further large-scale geological exploration increased the estimation of the recoverable reserves to 520 million tons of oil and 90 billion cubic metres of gas. This will mean an annual output of 25 million tons in five years' time. The capacity of the first stage of the ESPO will be 30 million tons a year, while the capacity of the branch of the pipeline being built to China will be 15 million tons a year.
The gradual putting in operation of deposits in the Vankor group will ensure that a high volume of oil will be regularly supplied to Asian countries on the Pacific in the long term, thus allowing Russia to gain a foothold in this relatively new and fast-growing market.
Wells from the Vankor group promise to be most productive in Russia, with an average production of 430 tons a day. The productivity of individual wells may surpass 1,500 tons a day. In comparison, the daily average output per well across the country is 39.5 tons.
The placing in service of the Vankor deposit is expected to reverse the trend of decreasing oil production in Russia. The Vankor project is a key part of Russia's energy strategy to ensure national and global energy security.
The total amount of funds necessary for the Vankor project from 2003 to 2010 is estimated at 232.3 billion roubles. The bulk of investment will be needed from 2007 to 2009. In 2008 alone, design and survey work accounted for more than eight billion roubles. Construction and assembly required another 32 billion roubles, while new equipment required 40 billion roubles.
Vankor is one of the most important sites in Russia's oil sector for technological innovation
The best of Russian and Western specialists, many of whom have extensive experience in drilling and building in northern climates, were employed in the development of the Vankor oil and gas deposits and the construction of associated pipelines. Today, Vankor is one of the most important sites in Russia's oil sector for technological innovation, utilizing advanced drilling and production technologies.
Vankorneft's partners include internationally known companies such as Halliburton, Schlumberger, Baker-Hughes, Wartsila, Dresser, Siemens, VECO Eng, SNC-Lavalin, Fluor Daniel, Bechtel, Mi-Swaco, and General Electriс. Vankorneft also draws on the experience of Russian companies from the oil and gas industry, such as Uralmash, Gazprom Drilling Company, Stroitransgaz, Lukoilneftegazstroi, Sibneftegazstroi, and others.
The Vankor project includes an up-to-date system for petroleum gas recovery in order to eliminate "gas flares". Moreover, one portion of the petroleum gas (2.5 trillion cubic metres annually) extracted at Vankor will be pumped back into the deposit in order to maintain the reservoir pressure necessary for oil production. Another portion will be used for the project's internal needs, including the fueling of one-of-a-kinf self-contained gas turbine power plant with a capacity of 200 megawatts which will provide electricity and heating for housing and facilities associated with the project. The power plant will use petroleum and natural gas obtained from the same deposit.
Current status of project
Oil from Vankor will be pumped through a Rosneft pipeline measuring 820 mm across and 575 kilometres long to a pumping station at Purpe, in the Yamal-Nenets Autonomous Area. The pipeline will transport oil from the Vankor group of deposits to Transneft pipelines located to the southwest.
At first, 47 wells will supply the oil, which, following treatment, will be transported through the Vankor-Purpe trunk pipeline to the Transneft system. Other wells will be put into gradually.
The UPSV-Yug oil treatment and water removal plant is fully equipped to prepare oil in order to pump it through Rosneft's pipeline to the Transneft system of pipelines. The plant is capable of treating 13.5 million tons of oil a year. The UPSV utilizes oil treating lines with a capacity of seven million tons a year. In comparison, standard lines in Russia have a treatment capacity of three million tons a year. The only one line with a capacity that approaches that of Vankor's operates on Sakhalin-1 and handles six million tons a year.
The Vankor deposit currently includes facilities such as an oil storage depot with a capacity of 140,000 cubic metres, about 50 kilometres of pipeline, a mini-refinery, and housing for up to 2,000 workers. Vankor operates 66 producing wells. The field support base is equipped with helipads and communications facilities.
Rosneft's development strategy entails expanding production capacity in various Russian regions, including in Eastern Siberia. This area is one of Rosneft's strategic interests, while the Vankor group of deposits is one of Rosneft's priorities.