Russia's Gazprom Neft to Delay Novoportovskoye Oilfield Launch

Reuters

MOSCOW, April 19 (Reuters) - Russian oil producer Gazprom Neft will delay the start of commercial production at its key Novoportovskoye oilfield by around six months, two company sources told Reuters on Tuesday.

One source, who works at the field on the Yamal peninsula in the Arctic, said commercial production would start no earlier than September due to technological problems.

Russia's fourth-largest oil producer had planned to launch production at the field this spring and the project is seen as crucial to the company hitting its target of 100 million tonnes, or 2 million barrels per day, of oil by 2020.

The second source said output would be less than the 2.5 million tonnes of oil the company had planned to produce this year. The source, who is unauthorised to speak to the media, declined to say how much less the company would produce.

Gazprom Neft, a subsidiary of gas producer Gazprom , declined immediate comment.

The company has put the field's oil reserves at more than 250 million tonnes of oil and gas condensate as well as more than 320 billion cubic metres of natural gas.

Gazprom Neft's oil output jumped by 5 percent year-on-year in March to 3 million tonnes (709,000 bpd), the biggest increase among its Russia's peers.

The relatively high volumes of the field's light low-sulphur oil could also allow the creation of a new oil grade to feed refineries in northwest Europe.

Alternatively, oil could be shipped to Asia, though this could only be done over short periods because of difficulties navigating through winter ice.

(Reporting by Olesya Astakhova and Vladimir Soldatkin; Editing by Dmitry Solovyov and Susan Thomas)

Copyright 2016 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Criterion Process Operator, Michigan City, IN
Expertise: Production Operator
Location: Michigan City, IN
 
Process Technician -Geismar, LA
Expertise: Production Operator
Location: Geismar, LA
 
Process Technician-Geismar, LA
Expertise: Production Operator
Location: Geismar, LA
 
search for more jobs

Brent Crude Oil : $49.24/BBL 1.12%
Light Crude Oil : $47.83/BBL 1.65%
Natural Gas : $2.959/MMBtu 0.23%
Updated in last 24 hours