Courtesy of salympetroleum.com

Salym Petroleum Development (SPD) updated the terms of the license agreement for the West Salym oilfield. Pursuant to addendum to the document, SPD extended validity of the license until 31 December 2130.

“For the first time in Russia’s oil industry, a joint venture with foreign participation obtained from the state a guaranteed right to develop the field up to its exhaustion. Such confidence confirms the fact that SPD develops the Salym group of fields in accordance with the highest Russian and international industrial standards. In future we will undoubtedly continue adhering to the approach like this which is an integral part of the company’s strategy,” Alexey Govzich, SPD CEO, noted.

Within the scope of the updated license agreement SPD increased the area of the West Salym oilfield by a part of the East Shapsha license area of the unallocated subsoil reserve fund. Area of the oilfield has been increased from 755.6 km2 to 828.67 km2, with a 1.2 million ton increment in С2 recoverable oil reserves.

“Jointly with state authorities and our shareholders’ relevant services we have performed large-scale work to update the terms of license, the need for which was indicated by President of the Russian Federation in February 2015,” Yakov Volokitin, Petroleum Engineering Manager, explained. “For the first time since the license was issued to SPD in 1998, we revised its terms taking into account modern development principles. In particular, SPD separated exploration and production of hydrocarbon raw material from other types of economic activity. Subsequently, SPD can carry out geological studies of the subsoil within the boundaries of the entire license area, not just within the limits of mining allotment.”

The West Salym oilfield discovered in 1987 is located in the Nefteyugansk District of the Khanty-Mansiysk Autonomous Okrug. It was brought onstream in 2003. The main oil-bearing formations for commercial oil production lie in the Cherkashin and Akh deposits. SPD has drilled 22 exploration wells within the West Salym oilfield by now; the total well stock is 660 wells.

Source: salympetroleum.com