Russian oil firm Rosneft has won an auction for the right to develop reserves of the Umotkinsky hydrocarbon area of Irkutsk oblast in Russia. Rosneft bid RUB1.12 billion for the concession against an initial starting bid price of RUB200 million.
Rosneft said that the area is located in the Katangsky district of the oblast, with poorly developed economy and infrastructure. Along the area’s east boundary flows the Lower Tunguska river, with the East Siberia-Pacific Ocean oil pipeline passing at a distance of 200km from the area.
The firm has been competing for the right to develop this area because the reserves are located close to those it already owns in Irkutsk oblast. The existing reserves belong to the East-Sugdinsk region with adjacent Preobrazhensky, Danilovsky, Mogdinsky and Sanarsky areas.
Rosneft is also a shareholder in Verkhnechonskneftegaz, which holds a license on the Upper-Chonsk field. Vostok Energy, a joint venture with the Chinese oil major CNPC, owns licenses for West-Chonsky and Upper-Chonsky areas.
Rosneft estimates Umotkinsky area recoverable reserves at 17.1 million tonnes of oil equivalent (toe), while total reserves in the area are estimated to be 102 million toe.