Shell Gets Extension for Upper Salym & West Salym Oil Fields

The Federal Agency for Subsurface Use has signed and registered Amendment Agreements with Salym Petroleum Development N.V (SPD) extending the validity period of Upper Salym field and West Salym field licenses. Based on the approved design documents the validity period has been extended until 31 December 2032 and 31 December 2034, respectively. Original licenses for both fields were to have expired on 7 September 2013.

The Agreements also provide for a possibility of further extension of the above periods if continued hydrocarbon production in Upper Salym and West Salym is economically viable. The license validity would then be extended for a period sufficient for completion of the fields development ensuring the rational use and protection of the subsurface.

Early production from these fields is already ongoing. Full-scale industrial production in West Salym, the biggest in the Salym group of oil fields, will commence in the 4th quarter of 2005 and is expected to peak with at least 120,000 barrels per day by 2009.