The three parties will share technologies and innovations to develop conventional oil reserves

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The Orenburg Oblast region in Russia. (Credit: Gazprom Neft PJSC)

Russian firms Lukoil, Gazprom Neft and Tatneft have signed an agreement to jointly explore and produce hard-to-recover hydrocarbons in the Orenburg Region.

Through a new joint venture, named New Oil Production Technologies, the three parties will share technologies and innovations to develop conventional oil reserves.

The joint venture will also work on developing economically viable technologies for commercial development of hard-to-recover reserves at the Savitsky and Zhuravlyovsky license areas in the Volga-Ural region.

Pilot development of Savitsky and Zhuravlevsky blocks to commence in 2024

Each party will hold one-third interest in the assets portfolio of the newly established joint venture, which plans to begin pilot development of the Savitsky and Zhuravlevsky blocks in 2024.

Gazprom Neft deputy CEO for exploration and production and management board deputy chairman Vadim Yakovlev said: “We are continuing to develop what is, for us, a key region for our business — the Orenburg Oblast.

“This new joint venture will be the first such example in Russia of three leading vertically integrated oil companies bringing together their resources and skills to address the complex technological challenges involved in developing hard-to-recover hydrocarbon reserves.”

Covering an area of 900km2, the Savitsky license area is located in Buzuluk and Grachyovka Districts, Orenburg Region.

At the area, the partners have drilled the first exploratory and appraisal well of six wildcat and exploratory wells with horizontal completion.

The geophysical survey is being carried out by the joint venture including sampling and analysis of cores and fluids, scientific researches and field non-seismic studies.

Located in Buzuluk District, the 123km2 Zhuravlyovsky license area borders with the Savitsky license area, and features the currently suspended Zhuravlyovskoye field.

Gazprom Neft expects the license area to contain deposits of hard-to-recover hydrocarbons.

In April 2020, Gazprom Neft and UAE-based Mubadala Petroleum have signed a memorandum of cooperation to jointly develop new technologies focused on oil production, and digitalisation of production processes.