Yamal Megaproject 2 2 1 Yamal Megaproject The Yamal Peninsula is a strategic oil- and gas- of fields onshore and offshore Yamal is crucial for se- bearing region of Russia. Commercial development curing Russia’s gas production build-up beyond 2010. 3VTBOPWTLPZF KARA SEA -FOJOHSBETLPZF .BMZHJOTLPZF 5BTJZTLPZF 4FWFSP 5BNCFZTLPZF 4ZBEPSTLPZF ;BQBEOP 5BNCFZTLPZF ,IBSBTBWFZTLPZF :V[IOP GYDAN BAY 5BNCFZTLPZF 7FSIOF 5JVUFZTLPZF ,SV[FOTIUFSOPWTLPF ;BQBEOP 4FZBLIJOTLPZF #PWBOFOLPWTLPZF 7PTUPDIOP #PWBOFOLPWTLPZF /FSTUJOTLPZF /FZUJOTLPZF "SDUJDIFTLPZF 5PUB:BLIJOTLPZF BAIDARATA YAMAL PENINSULA "OUJQBZVUJOTLPZF BAY 4SFEOFZBNBMTLPZF 4FNBLPWTLPZF 5DIVHPSJBLIJOTLPZF 4FWFSP /VSNJOTLPZF ,BNFOOPNZTTLPZF ,IBNCBUFZTLPZF TAZ BAY 1BSVTPWPZF ,BNFOOPNZTTLPZF :BNCVSHTLPZF NPSF 0CTLPZF /PWPQPSUPWTLPZF 0QFSBUJOH $PNQSFIFOTJWFHBT :".#63( HBTQJQFMJOFT QSPDFTTJOHVOJU 1SPKFDUFEHBTQJQFMJOFT OB BAY 4FWFSP6SFOHPZTLPZF BOEHBTQJQFMFOFT 8FMMT XFMMDMVTUFST VOEFSDPOTUSVDUJPO 5";074,*: $POUJOFOUBM 4IFMG GJFMET GJFMET Field Pre-Development Scheme for the Ob & Taz Bays and the Yamal Peninsula 1 Yamal Megaproject 2 Reserves and Resources of Yamal tion, including the gas industry. This provoked 11 gas and 15 oil, gas and condensate fields with the necessity to introduce amendments into the approximately 16 tcm of explored and preliminary draft Program. estimated gas reserves (ABC1+C2) and nearly 22 In 2007 Gazprom jointly with the YaNAO Admi- tcm of in-place and forecast gas reserves (C3+D3) nistration amended the draft Program using the have been discovered on the Yamal Peninsula and results of long-lasting studies with regard to the in its adjacent offshore areas. Reserves of conden- creation of a scientific framework for engineering, sate (ABC1) are estimated at 230.7 mln t and those technological, environmental and technical solutions of oil – 291.8 mln t. aimed at developing fields and constructing gas Gazprom Group holds the development licenses pipelines on the Yamal Peninsula. for the Bovanenkovskoye, Kharasaveyskoye, Novo- The draft Program provides a detailed review of portovskoye, Kruzenshternskoye, Severo-Tambey- the Yamal feedstock base status and its develop- skoye, Zapadno-Tambeyskoye, Tasiyskoye and Maly- ment prospects, as well as technical and technolog- ginskoye fields. ical aspects of field development and hydrocarbon In terms of gas reserves (ABC1+C2) the Bovanen- transportation and production, social infrastructure kovskoye field is the most significant one on the Yamal development, industrial and environmental safety Peninsula (4.9 tcm). The initial gas reserves of the reinforcement. The Program also contains the Kharasaveyskoye, Kruzenshternskoye and Yuzhno- analysis of cost-effectiveness and the substantia- Tambeyskoye fields amount to about 3.3 tcm. tion of state support measures during the Program implementation. Comprehensive Yamal Development Program Yamal’s onshore fields are subject to integrated A draft Program for the Comprehensive Development development by means of creating three production of Fields on the Yamal Peninsula and in the Adjacent zones – Bovanenkovo, Tambey and Southern: Offshore Areas was developed by Gazprom in col- The Bovanenkovo production zone in- laboration with the Yamal-Nenets Autonomous Okrug cludes three basic fields: Bovanenkovskoye, (YaNAO) Administration in compliance with the as- Kharasaveyskoye and Kruzenshternskoye (the signment of the Russian Federation President and licenses are held by Gazprom Group). The to- Government in 2002. tal production is projected to reach up to 220 In the course of the Program consideration bcm of gas and up to 4 mln t of condensate by ministries and agencies there occurred per annum. considerable changes in the conditions of the The Tambey production zone involves six national energy sector development and opera- fields: Severo-Tambeyskoye, Zapadno-Tam- Gas Production Forecast for the Yamal Peninsula and Adjacent Offshore Areas (The development of promising areas offshore Yamal in the Kara Sea is projected to start after 2025) Year 2011* 2015 2020 2025 2030 Gas production 7.9 75–115 135–175 200–250 310–360 (bcm) * Production startup on Yamal 2 3 Yamal Megaproject beyskoye, Tasiyskoye, Malyginskoye (the The Company is exploring the possibility of con- licenses are held by Gazprom Group), Yuzh- structing an LNG plant on Yamal. no-Tambeyskoye and Syadorskoye. The total Thus, the maximum annual gas production on production is projected to reach up to 65 bcm Yamal is comparable to the volume of Gazprom’s cur- of gas and up to 2.8 mln t of condensate per rent gas supplies to the domestic market and exceeds annum. twofold the volume of gas exported to the countries The Southern production zone involves nine beyond FSU. fields: Novoportovskoye (the license is held by Gazprom Group), Nurminskoye, Malo- New Gas Transportation System Yamalskoye, Rostovtsevskoye, Arkticheskoye, In order to secure the conveyance of gas from Ya- Sredne-Yamalskoye, Khambateyskoye, Neyt- mal, a unique, unparalleled in Russia, new-gener- inskoye, Kamennomysskoye (located onshore). ation gas transportation system is planned to be The total production is projected to reach up to created before 2030. Gas from Yamal will be trans- 30 bcm of gas and up to 7 mln t of oil per ported via the 1,100 km long Yamal – Ukhta sec- annum. tion (5-6 lines) and further along the following di- Yamal Peninsula — a Region of Strategic Interest for Gazprom #PWBOFOLPWTLPZF BARENTS SEA /07: 63&/(0: NORWAY 5&3*#&3," /"%:. .63."/4, NADYM–PUR–TAZ REGION SWEDEN 1&3&(3&#/0:& 463(65 6,)5" :6(034, FINLAND RUSSIA 5:6.&/ )&-4*/,* 7:#03( /03% 4"*/51&5&34#63( 453&". 5"--*// 1&3. (3:";07&54 ESTONIA 3*(" 503;)0, ,";"/ 6'" LATVIA "45"/" .04$08 10$)*/,* LITHUANIA 704,3&4&/4, 7*-/*64 KAZAKHSTAN 56-" .*/4, BELORUSSIA 3 Yamal Megaproject 4 rection: Ukhta – Gryazovets, Gryazovets – Torzhok, Gryazovets – Yaroslavl and Ukhta – Pochinki. The overall distance of Yamal gas transportation by the new pipelines will be in excess of 2,500 km. To be a key element of the UGSS of Russia in the future, the new gas transmission system will convey over 300 bcmpa of gas from the Yamal Peninsula fields and include 27 modern com- pressor stations with the aggregate capacity of 8,600-11,600 MW. At the same time, the total length of linepipe will average 12,000-15,000 km. The creation of the gas transmission system from the Yamal Peninsula will contribute to a full-scale reconstruction of the existing Unified Gas Supply System of Russia. Implementation of Top-Priority Projects The Cenomanian-Aptian deposits of the Bovanen- kovskoye field rank as a top-priority development project on Yamal. Projected gas production from the field is estimated at 115 bcmpa to be in- Pre-Development of the Bovanenkovskoye field is creased to 140 bcmpa in the long term. To deliver progressing in full swing the produced gas to the UGSS, it is necessary to Shift Personnel Housing at the Bovanenkovskoye field 4 5 Yamal Megaproject construct the Bovanenkovo – Ukhta gas trunkline system. In October 2006 the Gazprom Management Com- mittee decided to initiate the investment stage of the Bovanenkovskoye field development and the gas transportation system construction. The first startup complexes rated at over 15 bcmpa for the Bovanen- kovskoye field development and the Bovanenkovo – Ukhta gas trunkline system are to be commissioned in the 3rd quarter of 2011. Between 2007 and 2008 the construction work progressed on paramount facilities of the Bovanen- kovskoye field, including the fire protection, sani- tation & epidemiology, environmental safety, life- support, production & transportation infrastructure, industrial bases. In 2008, 29 facilities – primary construction targets – are planned to be brought onstream (road management and well overhaul bases, operational services, a power plant for internal needs, power lines etc.). Construction of a drilling base, a geo- scientist station as well as of engineering support, «Yekaterina» Drilling Rig operational drilling and gas treatment facilities has been initiated. Additionally, in 2008 nearly 40 km of 1,219 mm Moreover, the first three out of nine drilling rigs concrete coated pipes designed for the operating have been delivered to the Bovanenkovskoye field; pressure of 11.8 MPa were laid during the sum- the preparation for the launch of operational wells mer navigation season at the most complicated drilling in the current year is ongoing. The first drill- system section – the submerged crossing via the ing rig, that will start drilling wells in the field, was Baidarata Bay. manufactured by the leading national machine-build- The Baidarata Bay is specific for its unique envi- ing enterprise URALMASH – Drilling Equipment and ronmental conditions: despite an insignificant depth was named Yekaterina. This is the fifth-generation rig, there are frequent spells of stormy weather, complex the product of the best and most advanced ideas of sea-floor sediments and frost penetration reaching the Russian engineers. the bottom in the winter. These conditions do not In 2008 Gazprom launched the construction of permit working activities in the Bay except for several the Bovanenkovo – Ukhta gas trunkline system. The months a year. pipeline is being constructed with the use of 1,420 The practice of laying a pipeline with such tech- mm high-resistant flow-coated pipes made of K65 nical parameters and in such complex environmental (X80) grade steel designed for the operating pres- conditions is the first of its kind not only in Russia, but sure of 11.8 MPa