MINERAL AND RAW MATERIAL BASE DEVELOPMENT. GAS PRODUCTION. GAS TRANSMISSION SYSTEM DEVELOPMENT
Alexander Ananenkov Deputy Chairman of the Management Committee
PRESS CONFERENCE HELD ON JUNE 1, 2011 AS PART OF PREPARATIONS FOR GAZPROM’S ANNUAL GENERAL SHAREHOLDERS MEETING Gazprom’s Resource Base as of January 1, 2011
Gazprom holds:
some 18% of global gas reserves some 70% of domestic gas reserves
Non‐licensed feedstock 10%
Independent producers 20%
70%
Gazprom accounts for: 3 А В С ‐ 33.1 trillion m of + + 1 natural gas reserves 3 ‐ 8 trillion m of С2 natural gas reserves
‐ 5 billion t of liquid hydrocarbon reserves (categories А+В+С1‐2)
2 Gazprom Group’s Reserves: Development Complexity
As of January 1, 2011 the reserves feature various complexity:
trillion m3 Plateau production within the Unified Gas Supply System operation area (Zapolyarnoye, Pestsovoye, Yamburgskoye, 59. Yety-Purovskoye, Yuzhno-Russkoye, Komsomolskoye) •Declining production (European Russia, Cenomanian deposits in Nadym-Pur-Taz) 65.
•Deep and complex deposits (including Neocomian and Achimov deposits in Nadym-Pur-Taz, Eastern Siberia) 44.
•Remote from regions with well-developed infrastructure 139 (Yamal, continental shelf) .
•Hydrogen sulfide containing deposits 24.
Total reserves 331.
including 18 trillion m3 being developed
3 Gazprom Group’s Subsurface Use Licenses
As of January 1, 2011 Gazprom Group held 407 licenses in Russia and abroad. These are categorized as follows:
NE - 231
In 2010 Gazprom Group obtained licenses: NR - 88 - for the right to use the Kharasaveyskoye-Sea UGS - 35 NP - 53 field of federal significance;
- confirming the fact of the Chugoryakhinskoye field discovery;
- 7 licenses confirming the fact of the NE and NR – hydrocarbon feedstock production; Kutymskoye, Yuzhno-Kypakynskoye, Yuzhno- NP – prospecting; Lenskoye, Ninelskoye, Zapadno- UGS – exploration, crea tion and operation of Pechorokozhvinskoye, Karmalinovskoye and UGS facilities Akobinskoye fields discovery.
4 Gazprom’s Mineral and Raw Material Base Development Program until 2030
In 2002 the Gazprom Management Committee elaborated and approved the Company’s Mineral and Raw Material Base Development Program until 2030. The Program set forth the key areas of the Company’s prospecting and licensing work. The Program parameters are adjusted and implementation results are reviewed on an annual basis. The Company’s Management Committee resolved to develop an updated program until 2035.
Creation of a resource base Hydrocarbon reserves for new gas production Hydrocarbon reserves development in centers in eastern Russia as development on the Russian Gazprom’s licensed part of the Development Federation shelf blocks located within Program for an integrated Program for Hydrocarbon the Unified Gas Supply gas production, Resources Development on System operation area transportation and supply the Russian Federation Shelf in order to maintain system in Eastern Siberia until«Программа 2030 (updatedосвоения ресурсовby the production and the Far East, taking into углеводородов на шельфе РФ Management Committee account potential gas до 2030 г. « exports to China and other (коррективыResolutionутверждены No.7 Asia-Pacific countries Постановлениемdated March 3,Правления 2011) от 03.03.2011 №7)
5 Gazprom’s Key Prospecting Regions in Russia
Kara, Barents and Pechora Seas Yamal Peninsula Northern Taz Peninsula, Ob and Taz Bays, Nadym-Pur-Taz region, Gydan Peninsula Kamchatka Peninsula shelf Northwestern Federal Okrug
Northern European Russia Far Eastern Federal Okrug Urals Federal Okrug Volga Federal Okrug (Western Siberia)
Southern Volga-Urals, Republic of Sakha Astrakhan Oblast Siberian Federal Federal Okrug Okrug Sakhalin Island shelf Krasnoyarsk Krai, Irkutsk Oblast
6 Gazprom’s Key Regions of Offshore Operations in Far East
Vostochno‐Odoptinsky block
Zapadno-Kamchatsky block Ayashsky block
KirinskyКиринский blockблок
7 Results of Gazprom Group’s Domestic Prospecting Operations in 2010
As a result of the prospecting operations performed in 2010 the following new fields and deposits passed the expert evaluation by the State Reserves Committee and were accounted for in the state reserves balance:
Yuzhno-Kirinskoye gas and condensate field in the Sea of Okhotsk Abakanskoye gas field in the Krasnoyarsk Krai Severo-Vakunaiskoye oil field in the Irkutsk Oblast Twenty-six new deposits
Prospecting operations Results of Domestic Operations yielded the following results in 2010: Drilling, thousand m 204.9 Completed wells 82 2D seismic surveying, thousand linear m 18.5 2 3D seismic surveying, km 10.8 Disbursed cash, RUB billion 55.6
С1 reserves increment: 3 gas, billion m 547.7 condensate + oil, million t 115.5 Prospecting effectiveness, thousand t (fuel equivalent)/m 4.2
8 Regions and Results of Gazprom Group’s Prospecting Operations Abroad in 2010
Uzbekistan Turkmenia Tajikistan Algeria Kyrgyzia
Vietnam Venezuela Bay of Bengal Bolivia India
10 wells completed, 21.8 thousand meters drilled 11,400 linear km covered with 2D seismic surveying, and 2,621 km2 – with 3D seismic surveying RUB 14.9 billion disbursed Gas reserves incremented in the Dzhel fields (Uzbekistan), Bao Vang and Bao Den offshore fields (Socialist Republic of Vietnam) Al-Assel gas and oil field discovered in Algeria
9 Gas Produced by Gazprom Group in 2010
Gazprom dobycha Other companies Gazprom dobycha Noyabrsk Добыча газа по ОАО "Газпром" в 2007 году Urengoy
15.8% 12.0% 21.2%
11.0% 508.6 billion m3
40.0%
Gazprom dobycha Nadym Gazprom dobycha Yamburg
10 Liquid Hydrocarbons Produced by Gazprom Group in 2010
32 31.5 32
35
30
25 10.9 11 20 10.1 .3
15
10
5
0 2008 2009 2010
Condensate, million t Oil, million t
11 Production Facilities Commissioned in 2010
2 comprehensive gas treatment units (CGTU): CGTU-2C in Zapolyarnoye oil, gas and condensate field (Valanginian deposits) – 6.49 billion m3 per annum 3 CGTU in Kshukskoye gas and condensate field – 0.18 billion m per annum
128 production wells, including:
17 wells in Urengoyskoye oil, gas and condensate field 9 wells in Block 2 (Achimov deposits) of Urengoyskoye oil, gas and condensate field 57 wells in Zapolyarnoye oil, gas and condensate field (Valanginian deposits) 21 wells in Yamburgskoye oil, gas and condensate field 6 wells in Yareyskaya area of Yamsoveyskoye oil, gas and condensate field 7 wells in Orenburgskoye oil, gas and condensate field 9 wells in Eastern block of Orenburgskoye oil, gas and condensate field 1 well in Kshukskoye gas and condensate field 1 well in Pribrezhnoye gas and condensate field
12 Gas Production Forecast
Forecast gas production by Gazprom, billion m3 2011 2012 2013 2014 519.0 521.0 549.2 570.0
In order to meet the projected gas production levels, it is required to:
Bring to design capacity: Valanginian deposits of Zapolyarnoye field
Put into operation: Nydinskaya area of Medvezhye field in 2011; Bovanenkovskoye field in 2012.
13 Top-Priority Offshore Development Prospects
Pechora Sea Sea of Okhotsk (Prirazlomnoye oil field) (Kirinskoye gas and condensate field)
The Prirazlomnoye oil field is located in the Pechora Sea 60 km off the shore (Varandey settlement). The Kirinskoye field is located 28 km off the shore. Local water depths vary between 19 and 20 m. Local water depths vary between 85 and 95 m.
Projected Annual Production Asset Development Startup Level
Prirazlomnoye oil field 6.5 million t 2011
Kirinskoye gas and condensate field 4.2 billion m3 2012 14 Major Projects for Gas Transmission System Development
• Yamal Peninsula GTS construction (including Bovanenkovo ─ Ukhta)
• Urengoy gas transmission hub (expansion) • Zapolyarnoye ─ Urengoy gas pipeline (expansion) • SRTO ─ Torzhok gas pipeline (complete CS commissioning) • Pochinki ─ Gryazovets gas pipeline • Nord Stream gas pipeline • Sakhalin ─ Khabarovsk ─ Vladivostok gas pipeline • Gas supply to Kamchatka • Dzhubga ─ Lazarevskoye ─ Sochi gas pipeline • Altai project
2.215 Nord Stream Project Северо - Европейский газопровод
Projected capacity, billion m3
Total 55.0 Phase 1 27.5
Nord Stream string 1 commissioning – in 2011
Gas pipeline length, km 1,200 Diameter, mm 1,219 Working pressure, MPa 22.0
2.316 Gryazovets – Vyborg Gas Pipeline
210 MW The two-string gas pipeline system with the annual throughput September 2011 of 55 billion m3, 1,400-mm diameter and 9.8-MPa working Vyborg pressure is designed to supply Russian gas to Nord Stream. 64 MW September 2011
Elizavetinskaya CS
64 MW September 2011
80 MW Volkhovskaya CS September 2012 125 MW September 2011 Pikalevskaya CS 128 MW Babaevskaya CS September 2012
Sheksninskaya CS
75 MW April 2011 Gryazovets The 898.8-km first string was put into operation, including 300.4 km in 2010
17 Nord Stream: Portovaya CS Construction
CAPACITY COMMISSIONING: 210 MW – September 2011 18 156 MW – September 2012
BovanenkovoBovanenkovo –– UkhtaUkhta –– TorzhokTorzhok GasGas TrunklineTrunkline SystemSystem
Bovanenkovo – Ukhta Ukhta – Gryazovets Length 1,024 km 960 km
Number of strings 2 strings 2 strings
Working pressure 11.8 MPa 9.8 MPa Annual throughout 115 billion m3 107 billion m3 Number of compressor stations 7 7 Number of compressor shops 14 14 Compressor shops capacity (estimated) 125 MW 96 MW
192.4 Ukhta – Torzhok Gas Pipeline System (String 1)
Total length – 1,370.342 km (8 linepipe sections) – to be commissioned in 4Q 2012 Total CS capacity – 805 MW (8 compressor stations)
Novosindorskaya CS Sosnogorskaya CS 100 MW 100 MW Novomikunskaya CS 100 MW
Novourdomskaya CS 100 MW
Novoprivodinskaya CS 100 MW
Novonyuksenitskaya CS 100 MW
Novoyubileynaya CS 125 MW
Novogryazovetskaya CS 80 MW to be commissioned in 2017
L= L= L= L= L= L= L= L= Compressor stations 145.7 km 153.2 km 151.2 km 31.1 km 116.4 km 119.6 km 122.8 km 133.5 km Linepipe sections 20 FieldField Tie-InTie-In GasGas PipelinesPipelines inin ObOb andand TazTaz BaysBays
Gas supplies – up to 75 billion m3 per annum Total length of tie-in gas pipelines – over 500 km
212.8 SouthSouth StreamStream ProjectProject
South Stream gas pipeline consists of: Total length of offshore gas I – Russian onshore part (Unified Gas Supply System expansion for gas supply to South Stream) pipeline II – Offshore part – some 900 km III – Gas pipeline in Southern and Central Europe Maximum depth
– over 2,000 m I Projected throughput – 63 billion m3 III Offshore part layout II
2.922 AltaiAltai ProjectProject
The Altai gas pipeline system will be created to supply natural gas from Western Siberia to China within the existing gas transmission corridor with follow-up extension across the mountains to the western part of the Russian-Chinese border.
1,420-mm pipes will be used for the 2,622- km-long pipeline construction. The working pressure of 7.4/9.8 MPa will be supported by 10 compressor stations with the total capacity of 896 MW.
Gas deliveries will be possible in late 2015.
Full throughput – 30 billion m3 of gas per annum.
232.10 MurmanskMurmansk ––VolkhovVolkhov GasGas PipelinePipeline
Length – 1,365 km
Number of compressor stations – 10
Diameter – 1,420 mm
Working pressure – 9.8 MPa
Annual throughput (including gas supplies to consumers in Murmansk Oblast and Republic of Karelia) – 26 to 50 billion m3
242.11 Natural Gas Transmission Scheme: Eastern Siberia and Far East
25 2.725 Sakhalin – Khabarovsk – Vladivostok Gas Trunkline
KP 0 First startup complex will be First startup complex facilities First startup complex will be (length – 1,295.3 km; diameter – 1,220 mm; Sakhalin commissioned in Q3 2011 pressure – 9.8 MPa) GCS Sakhalin gas compressor station Linepipe Operation Control Point Amursk Linepipe Amursk Linepipe De-Castri CS 2 Operation Center Base KP 505.0 Komsomolsk-on- Existing gas pipeline Amur (Daltransgaz)
Khabarovsk Linepipe Operation Center Base KP 874.0 Khabarovsk
Linepipe Operation Control Point Primorie Primorie Dalnerechenskaya Linepipe CS 9 Operation Center Base
KP 1,597.3
Vladivostok GDS
26 Gas Supply to Kamchatka
Gazprom is pre-developing the Kshukskoye and Nizhne- Kvakchikskoye fields on the western coast of the Kamchatka Peninsula. In 2010 the Sobolevo – Petropavlovsk-Kamchatsky gas pipeline was constructed. Length – 392 km. Diameter – 530 mm. Working pressure – 6.37 MPa. Annual throughput – 755 million m3. The project contemplates construction of gas distribution grids in Petropavlovsk-Kamchatsky.
2.627 Current Status of Underground Gas Storage Facilities
As of January 1, 2011 there were 25 underground gas storage facilities under operation in the Russian Federation (in 13 federal constituents), 8 of which were created in aquifers and 17 – in depleted fields. The work is underway to construct 2 UGS facilities is salt caverns: Volgogradskoye and Kaliningradskoye.
The following results were achieved over the past period of operation: - maximum daily send-out as of the 2010-2011 withdrawal period startup – 620 million m3; - average daily send-out (between December and February) – 500 million m3; - working gas capacity potentially available for withdrawal – 64 billion m3.
-The actual share of UGS gas in daily supplies to consumers in Russia, CIS and Europe exceeds 25%.
28 Underground Gas Storage Outlook
Working gas capacity as of the withdrawal period startup, billion m 3 872 1 Daily send-out as of the withdrawal season, million m 3 . Average daily send-out in December-February, million m 3 801.2 671.1 674.1 647.7 727.8 620 629.1 579.6 535 9 522.1 . 500 76.6 72.9 Показатели развития69подземного.5 хранения 64.0 65.3 66.3 газа согласно Мероприятий …
2010/11 2011/ 12 2012/ 13 2013/14 2014/15 2015/16
29 2010 Investment Program and Major Outcomes
RUB billion
Percentage Planned Actual (As of April 1, 2011) completion
Total amount of investment 905.2 894.3 98.8% Показатели развития подземного хранения Capital constructionгаза plan согласно Мероприятий 740.5 …736.6 99.5%
Long-term financial investment plan 153.4 142.0 92.0%
30 2010 Capital Construction Plan (Parent Company’s Investments): Outcomes
Total capital investments – RUB 740.5 billion RUB billion Investments consumed as of April 1, 2011 – RUB 736.6 billion (99.47% versus plan)
740.5 736.6
477.0 476.1 Показатели развития подземного хранения газа согласно Мероприятий … 210.3 206.2
23.7 9.5 9.5 23.5 11.1 9.5
Total capital Gas production Transportation Gas processing Future design and Equipment not construction and underground exploration work included in storage construction costs calculation Planned Actual 31