Complex Development of Gas Condensate and Hydromineral Resources of Eastern Siberia and Strategy of Gas Export to Asian-Pacific Regions (Apr) Countries

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COMPLEX DEVELOPMENT OF GAS CONDENSATE AND HYDROMINERAL RESOURCES OF EASTERN SIBERIA AND STRATEGY OF GAS EXPORT TO ASIAN-PACIFIC REGIONS (APR) COUNTRIES

V.F. Gorbachev, VNIIGAZ A.S. Antsiferov, VostSibNIIGGiMS, Irkutsk V.F. Mazanov, IGiRGI

World economy development in the last quarter of the 20th century and prediction of its development for the first quarter of the 21st century state that more than 60% of the world energy consumption will refer to the countries of Asian-Pacific region (APR). In the update situation on the world energy market demand of APR countries in the import of energy carriers continues to grow. This fact creates and provides for the potential possibilities for the export of Russian energy carriers and on the priority bases export of gas. If the necessary scope of energy consumption in developed and rapidly developing APR countries (up to 250-300·109 m3 by 2020 and no less than 300-400·109 m3 by 2030) is provided, than the internal regional annual deficit will constitute in terms of volume about 200-250·109 m3 and can be replenished only by means of external deliveries of natural gas. The major part of deficit of the necessary natural gas consumption in APR countries can be covered in case of arranging large scale gas deliveries from Eastern Siberia of the Russian Federation occupying the area of Siberian platform. Forming major oil and gas producing and oil-gas-processing complexes in Eastern Siberia and Sakha Republic (Yakutia) represents the constituent part of Federal Energy Program of Russia and OAO “Gazprom” will provide for economic, energy and ecological safety of eastern regions of Russia as a whole and separate subjects of its Federation. Gas demand in the regions of Eastern Siberia and Sakha Republic (Yakutia) amounting in expert assessments to 20-30·109 m3 by 2010-2020, will enable to implement the gasification projects of Irkutsk region and Sakha Republic (Yakutia). Initial summary resources (ISR) of hydrocarbons (HC) of Siberian platform (recovered) for the states of 01.01.2000 are assessed to equal 65.0·109 ton of oil equivalent including more than 47.0·1012 m3 of natural gas. The distribution of free gas over the subjects of the Russian Federation is shown on Figure 1.

Fig.1 – Pattern of HC resources of Siberian platform and over the subjects of the Russian Federation

Distribution of ISR of hydrocarbons on Siberian platform as for the oil and gas provinces shows that the majority of ISR is concentrated in the Central and Southern regions – Angaro-Lena oil and gas province (OGP), Nepsk-Botuobinsk OGP, Baikit OGP, Katanga OGP and Predpatom OGP. The ratio of oil and gas in the region as a whole constitutes approximately 1:3 and practically is preserved around the subjects of Federation. ISR of free gas of Siberian platform are distributed over the subjects of the Russian Federation in the following way: in Krasnoyarsk region is concentrated more than 50% of IS of free gas, in Irkutsk region more than 20% and in Sakha Republic (Yakutia) more than 25%. Dynamics of initial summary resources of gas of the explored fields in the Eastern Siberian region over the subjects of the Russian Federation is depicted on Figure 2. As is seen from this figure the peak (maximum) of ISR of the fields of the explored fields of gas as per the subjects of the Russian Federation refers to last but one decade of the 20th century. This is due to the fact that this period is characterized by significant volumes of deep prospecting exploration drilling. Annually within the territory of Eastern Siberian region there has been drilled no less than 300.0 thousand meters of deep drilling.

1000000 800000 600000 400000 200000 0 1955-1960 1961-1965 1966-1970 1971-1975 1976-1980 1981-1985 1986-1990 1991-1995

Krasnoyarsk region Taimyr region Evensky region Irkutsk region Sakha Republic ( Yakutia)

Fig. 2. Dynamics of gas fields reserves to be discovered in Eastern Siberian

Free gas industrial production in the region is implemented in Krasnoyarsk region since 1969 (Taimyr AO), in Sakha Republic (Yakutia) – since 1968. The accumulated production constitutes in Krasnoyarsk region more than 100·109 m3, in Sakha Republic (Yakutia) more than 30.0·109 m3. In the total amount of ISR the current explored reserves constitute about 3.0·1012 m3, 12 3 preliminarily assessed reserves also amount to about 3.0·10 m , free gas resources of category C3 are about 2.5·1012 m3, and the majority of ISR (more than 47.0·1012 m3) is related to the predicted resources of less investigated territories and complexes which refer to category D and at the same time justify significant reserve for industrial gas and oil resources increase. Maximum amount of ISR of free gas (53.7%) is concentrated in the depth interval 1-3 km., which is most accessible for drilling. The major part of free gas ISR is concentrated in Vendium deposits (36.9%), for the share of Cambrian refers 23.6%. In Mesozoic deposits is concentrated 19.5%, in Riphean 7.7% of all free gas ISR. These data constitute evident confirmation of the fact that the resource base of hydrocarbon feedstock prepared in Eastern Siberia is related mainly to the most ancient deposits of our planet and are unique for the present in the world. The established by the beginning of the 21st century situation with distribution of summary explored gas and condensate reserves on Siberian platform shows that major export deliveries of this hydrocarbon feed shall be provided (fig.3) first of all from the south-eastern regions of Irkutsk area and south-western regions of Sakha Republic (Yakutia) The summary explored gas reserves of south-eastern parts of Irkutsk area constitute more than 2.2·1012 m3 including about 1.9·1012 m3 from the unique Kovyktin gas condensate field which is now is in the stage of exploration. It shall be emphasized that from more than 30 already drilled exploration wells no well has shown boundaries of gas condensate deposit. In this respect according to our expert assessment reserves of Kovyktin gas condensate field can be increased minimum two times. Fig. 3 General map of oil-and-gas perspective fields and objects in Irkutsk region and adjoining regions of Sakha Republic (Yakutia)

The summary explored gas reserves of south-western parts of Sakha Republic (Yakutia) amount to more than 2.7·1012 m3 from which more than 1.2·1012 m3 are related to Chayandin gas condensate oil field. Thus as basic fields for forming the large-scale gas producing complex at this territory for the present should be considered unique Kovyktin GCF and Chayandin gas condensate oil field with their summary gas resources amounting to more than 30·1012 m3 . Producing capabilities of Kovyktin GCF development and Chayandin gas condensate oil field development in the view of cluster operation drilling of the productive part of the section by horizontal well bores shows that for Kovyktin GCF during optimal field drilling gas production can reach 60- 70·109 m3 per annum and will be preserved for more than 20 years. On the second – Chayandin gas condensate oil field gas production can amount to 25·109 m3 per annum preserving this level of production also as minimum for 20 years. And for this variant of the fields development the number of production wells is reduced two times as minimum, and wells location by clusters drastically decreases the environmental impact. Parameters of this variant of Kovyktin field development look more preferential as compared to Chayandin gas condensate oil field, as Kovyktin GCF is still in the stage of exploration and in our expert assessment the initial balance reserves of gas condensate feedstock can be increased as minimum two times, which fact will drastically increase the technical-economic parameters of the field development, in the view that this field is located in the region with the most well-developed infrastructure. The reviewed state of the gas feedstock base for south-western region of Sakha Republic (Yakutia) and south-eastern regions of Irkutsk area in the view of the stated producing capabilities of Kovyktin GCF development and Chayandin gas condensate oil field development demonstrate that during their intensive operation drilling by 2010-2012 gas production can amount to 60-70·109 m3, and by the year 2015 already 85-95·109 m3. It shall be noted that prospects of gas export deliveries from this region to APR countries is analyzed in the view of satisfying the stated demand in gas in the regions of Eastern Siberia and Far East. As stated above, by the year 2015 in case of complete necessary scope for the demand in gas in the regions of Eastern Siberia and Sakha Republic (Yakutia) amounting to 20-25·109 m3 per annum, potential export deliveries of gas to APR countries can reach 65-75·109 m3 per annum. Maintaining the specified possible levels of gas production in these volumes for the more long- term prospect will necessitate to implement into development new fields providing the annual gas recovery within the limits of 10-15·109 m3. For this purpose it is necessary to grow gas reserves in the volume of 1.5-2.0·1012 m3. This deficit, by the way, can be replenished as a result of contouring of only Kovyktin GCF. Moreover we shall once again emphasize that the major first-priority regions for forming the major gas producing complex at this territory at present are the south-western regions of Sakha Republic (Yakutia) and south-eastern regions of Irkutsk area. Analysis of geological-geophysical data demonstrates that in the direct vicinity to the basic fields there are observed some tectonic elements representing the objects for licensing. Summary prospective reserves of gas condensate resources are assessed to be 2.2-3.0·1012 m3 which amount can provide for the operability of complex within minimum 10-15 years. Therefore the annual gas recovery in this region of Siberian platform can be increased up to 100-150·109 m3 per annum. Thus the prospects of Russian gas export from the fields of Eastern Siberia to China, Korea and Japan, as set forth above, allow to significantly cover the internal regional annual deficit in these countries. In case of favorable investment climate enhancement of gas producing and transport complexes construction period and development of geological prospecting works these levels can be significantly increased. South of Eastern Siberia represents also a unique object for investment into the complex exploration of gas condensate, hydro-mineralogical feed. Formation collectors in salt and subsalt deposits of low Cambrian and Pre-Cambrian are saturated with unique strong and extremely strong chloride-calcium and magnesium-calcium brines. Their mineralization as a rule increases the boundary solubility of halite (320 gram per liter) and sometimes reaches 400-500-600 g/l and more (density respectively is 1.3-1.4 g/cm3 and higher). Content in them of bromine, lithium, rubidium, strontium and other valuable components many time exceeds the industrial conditions. Such brines rarely are encountered in other basins of the world and actually are the unique “liquid ore”. The predicted resources of hydromineralogical feed (HMF) at present are assessed for Angaro-Lena artesian basin only for two reservoirs (Osin and Nizhnemot) of the subsalt hydrogeological formation, and these resources are rather significant (Table 1).

Brines Macro-components (n·106 m) Reservoirs resources, 3 Mn K Na Mg Ca Cl SO HCO km 4 3 Osin 180 77890 2310 9440 2360 13610 48660 130 70 Nizhnemot 830 244810 3350 45320 6670 38850 146280 340 230 Total 1010 322700 5660 54760 9030 52460 194940 470 300

Brines Macro-components (n·106 m) Reservoirs resources, 3 Li Rb Na Mg Ca Cl SO HCO km 4 3 Osin 180 29.5 2.4 9440 2360 13610 48660 130 70 Nizhnemot 830 76.0 9.2 45320 6670 38850 146280 340 230 Total 1010 105.5 11.6 54760 9030 52460 194940 470 300

Table 1 – Predicted resources of hydro-mineralogical feed in Nizhnemot and Osin reservoirs of Angaro-Lena artesian basin.

In the area of Angaro-Lena artesian basin are clearly subdivided two hydrochemical brine zones. Brine zone with mineralization of more than 350 g/l covers central and all the southern part of Nepsk-Botuobinsk oil gas province at the territory of which is located Chayandin gas condensate oil field. The summary volume of brines in this area is 102400·106 m3, summary resources of hydromineralogical feed (total weight of water dissolved mineral components) – about 40.0·109 ton. Brine zones with mineralization less than 350 g/l are located on north-west and south-east edges of oil gas province. Summary scope of these brines at the assessed territory is 61852·106 m3, summary mineralization – about 20.0·109 ton. Totally for the assessed area the volume of brines in the permeable formations-collectors of Vendium megareservoir is more than 160.0·109 m3, the sum of hydromineralogical feed is 60.0·109 ton. (Table 2)

Minimal Brines with mineralization Brines with mineralization Total Main industrial less than 350 g/l more than 350 g/l resources chemical standards, Average Resources, Average Resources, of category components 3 3 3 ml/l content, g/l 10 ton content, g/l 10 ton P1, 10 ton Na 50.67 3134548 23.00 2355200 5489748 K 1000 4.19 259202 8.47 867328 1626530 Ca 48.80 3018866 91.67 9387008 12405874 Mg 100 5.3 327869 12.58 1288192 1616061 Sr 300 1.50 92793 2.73 279552 372345 Cl 197.35 12208466 237.58 24328192 36536658 Br 200 3.39 209712 5.71 584704 794416 SO4 0.471 29137 0.213 21811 50948 HCO3 0.096 5939 0.091 9318 15257 B 50 0.032 1980 0.13 13312 15292 I 10 0.016 990 0.007 717 1707 Li 10 0.028 1732 0.071 7270 9002 Rb 1 – 3 0.003 186 0.011 1126 1312 Mn 10 0.010 619 0.230 23552 24171

As a whole for the south of Eastern Siberia in the sum of all reservoirs of salt and subsalt deposits the predicted hydromineralogical resources have not yet been assessed. As per approximately rough assessments it can be presupposed that they are tremendous and most probably are the major in the world. In the process of complex no-waste processing of Siberian brines – “liquid ore” there can be obtained multiple various commercial products including chloride compounds of calcium, magnesium, sodium, potassium, manganese, lithium, rubidium, strontium, liquid bromine, calcium and sodium bromides, calcium and magnesium oxides, boric acid, technical iodine and other chemical commercial products. It shall be emphasized that during drilling for oil and gas in the brines were determined mainly those chemical components which have direct or indirect oil and gas prospecting significance and at present besides components, as set forth in Tables 1 and 2, in the brines there has been revealed several other valuable components (for instance, molybdenum, tungsten, zirconium and some others), but their resources due to insufficiency of chemical analyses has not yet been evaluated. The approximate complex geological-economic assessment of brines production and processing has been executed for gas and oil field located in the central part of Nepsk-Botuobinsk oil gas province. During putting into operation only one well giving during airlift the stable inflow of brine 280 m3/day (brine mineralization 398 g/l), the payback of expenditures can be reached during the third year of enterprise operation. In calculations were inserted costs of well construction, chemical enterprise equipment, operational costs, collection and transport of liquid, environmental protection and other expenditures, well operation factor has been assumed to equal 0.85. Industrial exploration of unique Siberian brines is feasible to be implemented simultaneously with exploration of hydrocarbon resources. At present in Eastern Siberia the most favorable territory for complex exploration of gas condensate and hydromineralogical feed is the south of Irkutsk area and south-west of Sakha Republic (Yakutia), where are explored and are prepared for development the gigantic Kovyktin gas condensate oil field, major Verkhnechonsk gas condensate field, Chayandin, Talakansk and other fields of oil and gas. To locate brine production and chemical production enterprises is feasible directly on the territory of gas and oil production objects or in the close vicinity of those. Inviting are also the options of their location in the town of Ust-Kut or the settlement Magistralnoye, which is connected to the European part and Pacific Ocean coast of Russia by the railway road (and Ust-Kut also is connected with the Northern Sea route), they are located in the close vicinity to Kovyktin field. Sales of the products of such enterprise will represent the source of investment in exploration of those unique Kovyktin and Chayandin fields and thus will drastically impact the terms of their putting into industrial operation, their payback period and, which is very important only in case of the complex exploration of those mineral resources. The chemical complex can be also built near such industrial towns as follows: Nizhne-Udinsk; Tulun; Zima; Sayansk; Cheremkhovo and Usolye-Sibirskoe. Explored but non-commercial gas fields located near the brine resources zone can be used for supplying the required energy. This scenario will allow to cut capital outlays needed for developing hydromineral resources. Irkutsk region has a relatively developed infrastructure. The Transiberian and Baikal-Amur railways cross its territory from the town of Taishet to Irkutsk and from Taishet to Ust-Kut and Magistralny. The south of the region where the main hydrominerals are accumulated has a sufficiently large motor road network that can be used for transportation of process equipment and chemical products.