Messoyakha Flows for Gazprom Neft, TNK-BP

Gazprom Neft and TNK-BP reported that first oil has been produced by the pilot project at the Vostochno-Messoyakhskoe field. The inflow received from the first two development wells points to the field's high potential. The project is being implemented by Messoyakhaneftegaz, Gazprom Neft and TNK-BP's joint venture controlled by the two companies on a parity basis.

A more accurate assessment of reservoirs and well flow rates will become available in 2014 upon completion of a series of production tests. According to the preliminary estimate, production from the field's main reservoir will peak by 2022-2023 at 10 million tons of oil and 5 billion cubic meters of gas.

In 2012, the total investment into development of the Vostochno-Messoyakhskoe field reached about $140 million. The work completed at the field included the drilling of four E&A wells and two clusters of pilot wells. Next year, Gazprom Neft and TNK-BP will boost project investments to $240 million, continue exploration and appraisal activities, drill new wells under the pilot production program, prepare design documents and construction sites, and begin infrastructure development. In addition to that, Gazprom Neft, the project's operator, has joined forces with Halliburton, one of the leaders of global oil service industry, to come up with a conceptual framework for the development of the Messoyakha fields group. Full-scale production in these areas will start upon completion of the construction of the Zapolyarye–Purpe trunk oil pipeline.

"By creating a new production cluster in the north of Yamal, Gazprom Neft is consistently implementing its strategic production increase plans. The Messoyakha pilot project will help us get a clearer picture of the reserves and area profiles in preparation for development of one of the country's largest oil and gas fields. I am positive that, with requisite state support, Gazprom Neft and TNK-BP will continue to invest into development of the northern territories seeking to begin full-scale production at Messoyakha," said Vadim Yakovlev, Gazprom Neft First Deputy General Director.

"Commencement of Messoyakha pilot production is a critical stage in long-term development of Yamal as a new petroleum province. The expertise and technologies contributed to the project by the TNK-BP/Gazprom Neft partnership have already yielded the first important results. Continued success of the Messoyakha project depends on efficient interaction with the state in creating the necessary transportation and production infrastructure and a favorable tax regime to assure considerable increase of hydrocarbon production in this region of strategic importance for the Russian oil and gas industry," noted Mikhail Slobodin, TNK-BP Executive Vice President, Strategy and New Business Development.


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