Slavneft Makes Discovery In Eastern Siberia

Slavneft reports that it made a new oil find in its eastern Siberian field of Kuyumbinsky and put estimated recoverable hydrocarbon reserves at 2.5 billion barrels.

Oil was discovered last week at test well number 217, where hydrocarbons flowed at the rate of 600 cubic meters a day.

The field, comparable in size to the largest UK North Sea fields, is located in Siberia's Krasnoyarsk region, bordering China, and company officials say China would be the ideal export destination when crude production ultimately starts. Slavneft said it was now in talks with Russian and foreign companies to create a consortium to develop the field and build evacuation infrastructure. The site is distant from any pipeline routes and at least $500 million would be needed to connect it to existing infrastructure. There is huge potential for an eastbound export route with China being a natural destination.

Plans are also being made to develop the field's gas reserves, estimated at close to 200 billion cubic meters. Oil from the well was of the Siberian Light grade, a sweeter lighter variety than Russian benchmark Urals.

Slavneft also holds licenses to explore several other fields in Eastern Siberia and said preliminary studies showed that the region contained about 1.5 billion tonnes of oil, a trillion cubic meters of gas and up to 70 million tonnes of condensate.