Novoportovskoye Oil and Gas Condensate Field – Development Strategy and Transport Logistics

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Novoportovskoye Oil and Gas Condensate Field – Development Strategy and Transport Logistics Novoportovskoye oil and gas condensate field – development strategy and transport logistics Gazpromneft Yamal LLC July 2017 Geography and history of field development Geography and climate History of development Gulf ofGulfOb Located on the Yamal Peninsula, Stage I 1964–1970 Yamalo-Nenets Autonomous Okrug . 31 exploratory wells drilled License block size 659.6 km2 . Reserves appraisal Nearest population centres: Stage II 1979–1987 Bovanenkovo . pos. Novy Port (20 km SE) . 86 exploratory wells drilled . pos. Cape Kamenny (89 km NE) . Re-evaluation of reserves . Salekhard (293 km SW) Stage III 2000–2012 Gazprom Dobycha Nadym LLC Northern climatic zone: . Pilot production – 20 wells, 3D . winter – 60°С, summer +20°С seismic YAMAL Peninsula . 86 days of snowstorms per year . Reserves appraisal and assessment of . 245 days undr snow cover oil recovery Stage IV from 2012 Gazpromneft Novy Port LLC . Gazpromneft Novy Port LLC p. Cape Kamenny . 42 production wells drilled . Production development plan Novoportovskoye Reserves, 2 P, PRMS endorsed NGKM p. Novy Port Liquid hydrocarbons, mt Gas, bcm 21 56 p. Yar-Sale 80 46 Salekhard Proven Probable Proven Probable Gazprom Neft 2 The complex geological structure of the Novoportovskoye field 90% of recoverable reserves are located in five strata mt, bcm 0 100 200 300 400 500 NP1 PK1 KhM1 Oil KhM3 Dry gas NP TP0 2-3 TP 1-4 Gas-cap gas with condensate BYa22 NP4 BYa23 BYa24 NP51 NP1 NP2-3 NP4 NP51 2 2 NP5 NP5 NP7 NP NP8 7 Yu2-6 NP8 1 Yu11 2 Yu11 Yu2-6 3 Yu11 Gazprom Neft 3 The Novoportovskoye field – winter 2012 Gazprom Neft 4 Oil, gas and condensate transportation options Oil transportation Pipeline to Cape Kamenny sea terminal and then on to Murmansk by sea transport Gas transportation Condensate transportation Pipeline to Sabetta sea terminal and then by sea transport to Murmansk for commercialisation Gas pipeline Sea transportation Pipeline to Kharasavey sea terminal and then by sea transport to Murmansk for commercialsation Rail station Pipeline to sea terminal near Baydaratskaya CS and then by sea transport to Murmansk for Compressor station (CS) commercialisation Kharasavey Sabetta Pipeline to Usa OPS for commercialisation Pipeline to Krasnoleninskaya OPS for commercialisation Bovanenkovskoye Oil NGKM Pipeline to Purpe OPS for commercialisation Pipeline to Payuta rail station and then by existing rail line Obskaya–Bovanenkovo for commercialisation Pipeline to Payuta rail station, and then by rail line Obskaya–Bovanenkovo to Kharasavey station, then by sea transport to Murmansk for commercialisation Baydaratskaya CS Rail transport to Payuta station and then by Obskaya–Bovanenkovo rail line for commercialisation Integrated option - Cape Kamenny sea terminal and pipeline to Payuta rail station Pipeline to Baydaratskaya CS Cape Kamenny Pipeline to Nydinskaya CS Yamburgskaya CS Payuta rail station Gas Pipeline to Yamburgskaya CS crossing Gulf of Ob near Cape Kamenny Pipeline to Yamburgskaya CS crossing Gulf of Ob near pos. Novy Port To Usa OPS Rail transport with oil to Payuta station Novoportovskoye NGKM Novy Port and then by Obskaya–Bovanenkovo rail line for commercialisation Pipeline to Payuta rail station and then by existing rail line Obskaya–Bovanenkovo for commercialisation Integrated transportation of condensate and oil for commercialisation Nydinskaya CS To Krasnoleninskaya Transportation by existing pipeline (219) to Cape Kamenny with construction of oil shipment terminal OPS To Purpe OPS Condensate Pipeline to Cape Kamenny with construction of oil shipment terminal Gazprom Neft 5 Pilot voyage of the Vaygach icebreaker Objectives . Check navigability of the Gulf of Ob during challenging ice conditions Port Sabetta . Confirm possibility of transporting oil from the Novoportovskoye field by sea Yamal Peninsula ~ 400 km Climatic conditions of the Gulf of Ob Cape Kamenny . -25°C February: absolute Novoportovskoye lowest -56°C field . Ice depth: Up to 2.35 m . Ice-free navigation: approx. 85 days per year Outcomes . Goal achieved – the ice-breaker successfully traversed the challenging ice conditions of the Gulf of Ob* . Possibility of organising oil transportation via the Gulf of Ob confirmed . Specialists from the Krylov Shipbuilding Institute invited to take part in the voyage. Objectives: to research ice conditions in the Gulf of Ob . First positive experience of working with Atomflot confirmed * Pilot voyage undertaken in 2011 Gazprom Neft 6 First oil shipments by road – winter 2013 Payuta Novy Port Transportation on winter ice roads Transportation by rail to the Enisey refinery More than 10,000 tonnes shipped during this period Gazprom Neft 7 The Novoportovskoye field – winter 2013 Gazprom Neft 8 Infrastructure solutions during pilot development Oil is transported by ice-class tankers via the Northern Sea Route to countries in North– Central West Europe Gathering Plant (CGP) Gulf of Ob Temporary transportation system Crude oil delivery and acceptance point (CODAP) Well clusters Pressure pipeline Following treatment at the CGP oil is transported via pressure pipeline to the CODAP at Cape Kamenny Gazprom Neft 9 Pro tem summer oil shipments – 2014 CODAP Oil transportation Offloading hose River tanker Sea-going tanker Offloading of oil from the Transportation to sea-going 'Berth-to-berth' offloading of oil from CODAP to the river tanker tanker river to sea-going tanker by hose First oil shipment (2014): 101,000 tonnes Second oil shipment (2015): 180,000 tonnes Gazprom Neft 10 Photo reportage – summer oil shipments, 2014 Gazprom Neft 11 Pro tem winter shipments, 2015 Transportation to countries in North–West Europe CODAP ARC5 ice-class tanker Gulf of ObofGulf 105км Fuel-delivery hose Yamal Peninsula 219 mm diameter Cape Kamenny p. Novy Port CGP Muravlenko Noyabrsk Icebreaker support from FGUP Atomflot Total oil shipped (2015): 112,000 tonnes Gazprom Neft 12 Photo reportage – winter oil shipments, 2015 Gazprom Neft 13 Layout of production facilities at the Novoportovskoye oil and gas condensate field under full production Arctic terminal 6 tankers Oil pipeline CODAP 219 mm-diameter oil pipeline Gulf of ObofGulf PBS with Yamal Peninsula 110 kW HV line PWSU Gas pipeline Oil pipeline Gas pipeline CGP Cape Kamenny Yamburg CS p. Novy Port GTPP CS with GTP Phase 1 Phase 1 12 clusters/289 wells Phase 2 + Phase 3 Gas Phase Muravlenko Noyabrsk Gazprom Neft 14 Year-round Arctic loading terminal Tower-type Arctic loading terminal (ALT) Remote mooring device Onshore oil pipeline Underwater oil pipeline Total length 3.1 km Total length 7.6 km Diameter 720 mm Diameter 720 mm 61 m Loading capacity up to 40,000 tonnes per day Winter temperatures as low as -50⁰С 78 m Ice depth up to 2.5 metres. Fresh water 2016: Test oil offloading July 2016: Specialist tankers ready Gazprom Neft 15 Photo reportage – installation of the Arctic terminal, September 2015 Gazprom Neft 16 Tanker fleet and icebreaking support vessels Tanker fleet Tanker type: Arctic Shuttle Tanker RMRS class: Arc 7 Deadweight: 42,000 tonnes Maximum draught: 9.5 metres Main-engine capacity: 2х11000 kW Icebreaking support vessels Designer/developer: Aker Arctic Ice class: Icebreaker8 Navigation area: unlimited Maximum draught: up to 8 metres Main-engine capacity: at least 22 MW Gazprom Neft 17 Oil transportation Legend The length of the route from Cape Kamenny to Tanker routes Murmansk totals approximately 2,500 km, with tankers completing round-trips in two and a half Icebreaker support weeks Icebreaker support Alternative route Transportation by specially equipped tankers with a deadweight of up to 40,000 tonnes Icebreaker support from FGUP Atomflot Oil transported to ports in Western Europe from Murmansk Port Sabetta Kara Strait Murmansk Murmansk identified as the optimum point Oil is transported from the field via a for intermediate transhipments under 105-km pressure-pipeline to a CGP pos. Cape transportation by standard bulk-fleet due near Cape Kammeny and then Kamenny to tankers not being impacted by ice, shipped by tanker from the CODAP. customs clearance taking place at the accruing port, and the high draft at the port. Gazprom Neft 18 Oil production over the course of the project May 2012 May 2015 July 2017 Well drilling begins First winter sea May 2014 shipments completed May 2016 Independent power August 2018 generation begins Dec 2012 Endorsement of field Full testing of Phase I handed over to development plan ALT begins Production Directorate Field moves into pilot production 2012 2013 2014 2015 2016 2017 2018 2019 Export duty First oil at the concessions secured Novoportovskoye NGKM Aug 2015 Aug 2012 Full testing of oil Gas injection (gas First winter-road pipeline initiated shipments completed flooding) initiated First fracking on June 2016 May 2013 Full testing of CGP Aug 2017 the Yamal Peninsula First summer sea Year-round oil initiated shipments initiated shipments initiated May 2013 Aug 2016 Aug 2014 Dec 2015 Oil production, t/d ∑ 16 ∑ 148 ∑ 342 ∑ 2,922 ∑ ~ 5.5 ∑ ~ 6.5 ∑ ~ 7.4 thousand thousand thousand thousand mn mn mn tonnes tonnes tonnes tonnes tonnes tonnes tonnes Gazprom Neft 19 Restoration of aquatic biological resources Appropriate restoration of aquatic biological resources – in the order of 20 million muksun (white fish) fry or the equivalent – undertaken throughout the development of the Novoportovskoye oil and gas condensate field. In 2015 3.6 million muksun fry and 270,000 peled fry (both fish of the salmon family) released into the Ob River and the Ob-Irtysh basin. Gazprom Neft 20 Technical and design solutions for environmental protection Temperature stabilization of Thermal-insulated casings Above-ground laying of oil pipelines permafrost soil Applying environmentally-friendly technologies in the permafrost conditions and fragile ecosystem of Yamal . Use of natural-flow horizontal pipeline . Overground pipeline laying systems (“GET”) . Construction of overland throughways for deer . Thermo-regulators used migrations Thermal-insulated . Leak-detection systems used casing . Skin-effect heat tracing systems used Objectives . Fully test and ensure the load-bearing . Significant improvements to pressure- .
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