The “flank” mechanism gives existing subsoil users a priority right to secure prospecting licenses to blocks in the Unallocated Subsoil Reserve Fund within a 20-kilometre zone around fields currently under development — such flank blocks not being expected to contain any recorded hydrocarbon or solid mineral reserves.

The geological prospecting license for the Sverdlovsky 4 block, at the Raul-Yuri Erve (Ourinskoye) flank field, was acquired by Evrotek-Yugra (a Gazprom Neft—Repsol joint venture).* Covering an area of 590 square kilometres, reserves in place at this asset stand at 21 million tonnes of oil.

Gazprom Neft subsidiary Gazpromneft-Khantos has acquired the geological prospecting licence to the Yuzhno-Zimnee block, adjacent to the Zimnoye field.** This asset is located in the Uvatsky district of the Tyumen Oblast, and covers an area of 445.9 square kilometres. Data from the State Register of Mineral Reserves indicates recoverable reserves at this asset stand at 6.8 million tonnes of oil.

Geological prospecting licenses to both blocks have been issued for a period of five years. Prospecting and appraisal programmes at both assets will be prepared by the end of 2019, with seismic works starting in 2020.

Yuri Masalkin, Director for Geological Exploration and Resource Base Development, Gazprom Neft, commented: “Developing the flank programme will allow Gazprom Neft to gain access to interesting blocks for exploration, quickly, and at minimal cost. This new mechanism also helps give a second wind to fields under development. The company made an assessment of 20-kilometre flank zones in the Khanty-Mansi, Yamalo-Nenets and Orenburg Oblasts in 2018, identifying the most promising assets. We plan to acquire a further 10 flank licenses before the end of the year.”

Source: gazprom-neft.com