Repsol and Alliance Oil begin commercial gas production in Russia

Thursday, Mar 07, 2013

Repsol and Alliance Oil have begun commercial gas production from the Syskonsyninskoye (SK) field in the Khanty-Mansiysk region of Russia, marking the first success of the A&R Oil and Gaz BV (AROG) joint venture created to explore for and produce hydrocarbons in Russia.

Initial daily gas production is 855,000 cubic metres (5,350 barrels of oil equivalent per day) and is being delivered to the Gazprom transportation network. To date, 5 production wells have been drilled and 3 of them have been put into operation.

Further development of the field in the coming year envisages drilling 6 more wells from 5 locations by early 2014.

AROG’s total output currently stands at 25,000 boepd and its proven and probable reserves amount to 278 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," said Fernando Martinez Fresneda, General Manager Repsol Russia.

"The launch of the Syskonsyninskoye gas field illustrates the strategic and operational synergies that can be extracted through our joint venture with Repsol. Through the combined efforts of our teams, this first integrated project was managed in a highly professional manner. With this new field on stream we have taken another step towards the realization of our upstream targets", said Arsen Idrisov, Alliance Oil Company's Managing Director.

Repsol is increasing production worldwide based on the successful exploration portfolio built up over the last decade. In the last year, the company has added output from new projects in Brazil, Bolivia, the United States and Spain, and expects to start up the Kinteroni field in Peru this year. The company’s 2012-2016 Strategic Plan envisages annual production growth of at least 7% to reach 500,000 boepd in 2016.

Alliance Oil Company is increasing upstream production in Russia based on its expanding hydrocarbon reserve and resources base. The company has recently added output from new projects in the Timano Pechora and Tomsk regions in Russia. The company’s 2013-2015 upstream strategy envisions extending the company’s track record of double-digit production growth.

Source: Repsol

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