Gazprom: Nearly 3 MMbbl of Arctic oil delivered to Europe

In April, Gazprom reached a milestone for its Prirazlomnoye oil field as the Kirill Lavrov tanker delivered a new batch of ARCO Arctic oil to Europe during its sixth shipment. More than 2.9 MMbbl of oil has been extracted from the Prirazlomnoye oil field since production began.

The Prirazlomnoye oil field is in the Pechora Sea, about 60km from the coast. Its estimated recoverable oil reserves are more than 70 million tonne.

The Prirazlomnoye field is the only oil-producing field on the Russian arctic shelf and the only production development on a stationary platform in the Arctic.The oil is produced via a unique ice-resistant platform designed and built in Russia to operate in extreme conditions and to withstand maximum ice loads. The platform stands on the sea bed and its foundation walls are 3m thick. The design calls for wells to be drilled within the platform so they are isolated from the open sea.

The milestone shipment occurs about 18 months after Gazprom loaded its first shipment of oil produced from Prirazlomnoye in 2014. That 70,000-tonne shipment was delivered to northwestern Europe by the Mikhail Ulyanov and Kirill Lavrov oil vessels. It was the first time Arctic oil met the global market.

Both the Kirill Lavrov and the Mikhail Ulyanov Arc6 class double-hulled icebreaking oil tankers export crude oil from the Prirazlomnoye field. The vessels, which are specifically designed for year-round oil transportation in Arctic conditions, were built in the Admiralty Shipyard in St. Petersburg. All vessels at the field are able to move through ice stern-first, thus improving mobility and safety in harsh arctic conditions. The Prirazlomnoye transport system includes two multifunctional icebreakers that allow uninterrupted supply and operations at the platform.

“We first extracted oil from the Prirazlomnoye platform less than 18 months ago," said Gennady Lyubin, CEO of Gazprom Neft Shelf. “In this short period of time, we have begun industrial-scale production of crude oil and sent regular shipments of oil to our customers.”

The Prirazlomnoye field produced about 300,000-tonne in 2014, and projected oil production is expected to reach 6 million tonne per year after 2020. The field includes one exploration well, and Gazprom plans to begin operating an injection and disposal well. At least four additional exploration wells will be drilled. ARCO oil is sold in foreign markets under the Gazprom Neft Trading GmbH brand, a subsidiary of Gazprom Neft.

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