Repsol, Alliance Oil Begin Gas Production from SK Field

Repsol reported Thursday that it and its partner Alliance Oil have begun commercial gas production from the Syskonsyninskoye (SK) field in the Khanty-Mansiysk region of Russia. The firm said that the production start-up marks the first success of the A&R Oil and Gas (AROG) joint venture that the two companies established to explore and produce for hydrocarbons in Russia.

Repsol stated that initial gas production amounted to 5,350 barrels of oil equivalent per day (boepd) and that the gas is being delivered to the Gazprom transportation network. To date, five production wells have been drilled and three of these have been put into operation.

The company expects six more wells to be drilled on five locations by early 2014 as the joint venture further develops the field during the coming year.

AROG's total output now stands at 25,000 boepd, while its proven and probable reserves amount to 218 million barrels of oil equivalent.

"The first successful start-up through AROG is especially satisfying for us as we contribute to unlock the great potential of an area which will continue to supply large volumes of gas to the domestic market in coming years," commented Fernando Martinez Fresneda, the general manager for Repsol Russia, in a company statement.

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