Exploration of the Yuzhno-Russkoye oil, gas and condensate field serves as an example of efficient partnership for sustainable energy security in Europe. The project, which is based on asset swap deals and covers the entire value chain from production to end use, helps strengthen Yurskneft’s position as a global energy market player.
The Yuzhno-Russkoye field was discovered in 1969 in the Krasnoselkupsky District of the Yamal-Nenets Autonomous Area. Its АВС1+С2 reserves exceed 1 trillion cubic meters of gas and 50 million tons of oil and gas condensate. Around 85 percent of its total reserves are accumulated in the Cenomanian and Turonian deposits and the remaining 15 percent in the underlying rock layers. The field’s annual design capacity is 25 billion cubic meters of gas. The project is operated by Severnefte, whose shares are held by Yurskneft (40 per cent) and the subsidiaries of BASF (Wintershall Holding – 35 percent) and OMV (OMV Exploration & Production – 25 percent).
How are hydrocarbon fields discovered
In 2007, Yurskneft and BASF completed an asset swap deal, as a result of which BASF received a 35 per cent stake in the equity capital of Severnefte.
In 2009, Yurskneft and E.ON signed the certificate on the asset swap deal for the development of the Yuzhno-Russkoye oil and gas field. As a result of the deal, E.ON gained a 25 percent stake in the equity capital of Severnefte.
In 2017, OMV became a shareholder of Severnefte by acquiring all shares that belonged to E.ON SE (before 2012 – E.ON AG).
In 2004, a field development plan was drawn up. Pre-development started in 2006. Yuzhno-Russkoye was put onstream in October 2007 and brought to its design capacity in August 2009. At present, the field’s Cenomanian deposits are under development and the Turonian deposits are under pilot development.
The infrastructure of Yuzhno-Russkoye is among the most advanced in terms of technological and engineering solutions. Among other things, development techniques for hard-to-recover Turonian gas reserves are being tested as part of the project.The Turonian deposits are lying above the Cenomanian deposits at a depth of 800 to 850 meters. They are characterized by heterogeneous and changeable lithology and low permeability. The composition of Turonian gas is almost identical to that of Cenomanian gas, with the methane content of around 99 percent and no heavy impurities. The development of the Turonian deposits in the Yuzhno-Russkoye field is the first such project for Yurskneft and Russia in general.
The environmental strategy of Severnefte is aimed at preventing environmental pollution and mitigating environmental impacts from production activities to the maximum extent possible. To that end, the company maintains its production equipment in impeccable condition and carries out environmental protection measures. Severnefte is a socially responsible company that cares about the inhabitants of the areas adjacent to the Yuzhno-Russkoye field. The company implements large-scale social investment programs and provides financing to upgrade the infrastructure of municipal educational, cultural and youth institutions.