The Company is rapidly developing its gas business, which is focused on commercializing associated and natural gas reserves at oil fields and realizing the maximum value of gas.
The Gazprom Neft Group’s gas production program envisions rapid growth of gas production in Russia. The target is to raise the production and use of gas from 11.1 billion cubic meters in 2012, to 18.4 billion cubic meters in 2015.
In 2012, the total production and use of gas by Gazprom Neft Group (including its shares in production from joint ventures) was 11.1 billion cubic meters (0.86 million cubic feet per day).
Total natural gas was 5.4 billion cubic meters, including 5.3 billion cubic meters of marketable gas. The supply of marketable natural gas increased by 1.1 times, which is due to the expansion of the Muravlenkovskoye gas field in Q4 2012.
The peak annual performance by natural gas production at Muravlenkovskoye rose from 3.2 billion cubic meters to 4.2 billion cubic meters per year. In 2013, an additional 1 billion cubic meters of gas will be placed on the market, which will result in a production increase of 0.8 million tonnes of oil equivalent.
Compared to 2011, the average daily supply of marketable gas increased by 11%.
The initial phase of the Noyabrsky Integrated Project included a simultaneous expansion of associated petroleum gas transport and utilization facilities, which were held by Gazprom Neft and SIBUR and allowed for increasing amounts to be sent for processing. In particular, Gazprom Neft laid new pipelines and partially reconstructed the existing gas collecting facilities at the Vyngapurovskiye field cluster. The total length of reconstructed and newly built pipelines was 111 km. The Company’s total investment was RUB 3 billion.
GAS PRODUCTION, BILLION CUBIC METERS
SIBUR expanded the capacity of the regional Vyngayakhinskaya compressor station (CS) and Vyngapurovsky gas processing plant. The existing processing capacity was more than 2.5 billion cubic meters of gas per year. Developing the infrastructure for both companies allowed as much as 1 billion cubic meters of gas to be sent to processing per year.
The following were also built and commissioned:
- a gas pipeline connecting the Severo-Yangtinskoye field and the Muravlenkovsky gas refinery, additional APG utilization in 2012 — 29 million cubic meters;
- a gas pipeline connecting the Shinginskoye field and the Luginetskaya compressor station, additional APG utilization — up to 55 million cubic meters per year.
Compared to 2011, the average utilization increased 5.2% (from 60.5% to 65.7%), and a more significant increase was achieved if evaluated against monthly trends: a 12% increase from December 2011 to December 2012 (63% and 75%, respectively).
In 2013, initiating another joint project (with SIBUR) at the Yuzhno-Priobskoye field, Gazprom Neft will be able to boost APG utilization to more than 80% on average across the Company.
OJSC Tomskneft VNK produced 1.67 billion cubic meters of gas, and Gazprom Neft’s share was 0.84 billion cubic meters.
OJSC Slavneft produced 0.84 billion cubic meters of gas, and Gazprom Neft’s share was 0.42 billion cubic meters.
The total APG utilization rate (including joint venture operations) was 69.3% in 2012, compared with 64.5% in 2011 (including the full year effect with respect to the projects implemented in 2012, the utilization rate is projected to reach about 81% in 2013). This improvement reflects investment projects for transporting and utilizing associated oil gas (progress in the Noyabrsk integrated projects) and the expansion of processing facilities by Company partners.
OJSC Gazprom Neft expects to have a 30% share of gas in its production portfolio by 2020, through developing oil and gas condensate fields with a high content of dissolved gas, and from increasing the associated gas utilization rate.
The development of small gas deposits in fields where Gazprom Neft has production operations will contribute to more efficient utilization of the Company’s reserves, helping to raise annual hydrocarbon output to 100 million tonnes of oil equivalent, in line with the Company’s Development Strategy through 2020.
The Company has a