The major part of the Company's proved oil reserves is concentrated in the traditional hydrocarbon production regions (Western Siberia, Urals, Volga) that offer well developed infrastructure.
Western Siberia is the Company’s key oil production region (44.6% of the LUKOIL Group’s oil production), and its key resource base (49.3% of the LUKOIL Group’s proved oil reserves).
The first oil field in Western Siberia was discovered back in 1960, and as early as in 1964 commercial oil production commenced in the region. As of today, Western Siberia is Russia’s major oil production region. Most fields within the region are extra large and located close to each other.
The Company has had operations in Western Siberia since its establishment, when LangepasUrayKogalymneft state-owned corporate group was created on the basis of Western Siberian enterprises.
LUKOIL has operations in in two Western Siberian autonomous okrugs: Khanty-Mansi (mostly oil fields) and Yamal-Nenets (mostly gas fields).
Western Siberia accounts for 52.4% of LUKOIL Group’s exploratory drilling footage. Most prospecting operations here are conditioned by the need for replenishment of the resource base
Despite the highly explored Western Siberian reserves, prospecting activities that are under way here demonstrate high performance and efficiency. Enhanced oil recovery, fracturing, sidetracking, horizontal drilling and other techniques are actively deployed in this region. The multi-level field development monitoring system that uses geotechnical models helps LUKOIL to constantly optimize its field development operations.
A number of growth projects are being implemented on a regional scale:
- Imilorsko-Istochny License Area
Imilorsko-Istochny License Area includes two fields — Imilor + Western-Imilor field, and Istochnoye field. It offers a significant potential, while availability of the Group’s well developed infrastructure close to the block helps reduce costs and development period.
- Bolshekhetskaya Depression
The basis of LUKOIL Group’s gas production operations in Russia is represented by the Bolshekhetskaya Depression fields.
The Timan-Pechora oil and gas province prospects for significant high-viscosity oil production growth.
Mainly deposited at the Yaregskoye and Usinskoye fields, heavy crude oil accounts for approximately 5% of the Group's proved hydrocarbon reserves. The development of these reserves is stimulated through special tax rates.
The Company began its operations in the region in 1999 following the acquisition of the controlling interests in OJSC KomiTEK. In 2001, controlling interests were acquired in Kharyaganeft LLC, OJSC Bitran, CJSC Baitek-Silur, and AmKomi LLC. Timan-Pechora accounts for 18% of the Groups proved oil reserves, and 19.3% of oil production.
In 2000s, an export terminal was constructed near the settlement of Varandei in the Barents Sea due to the growth in production and the region’s poor infrastructure. The terminal enables year-round shipment of oil from Timan-Pechora province to supply to to the international market including the USA. In mid 2008 the terminal was commissioned following the expansion of its capacity up to 12 mln tmln t per year.
The Company is activety developing its growth projects in this region: Yaregskoye and Usinskoye high-viscosity oil fields as well as Trebs and Titov joint venture.
- Yaregskoye field (high-viscosity oil)
It is the largest high-viscosity oil field of the Group.
- Usinskoye field (high-viscosity oil)
The field’s Permian-Carboniferous deposit contains crude that is anomalously viscous, therefore thermal recovery methods are required for development.
- Trebs and Titov fields
In 2011, OJSC LUKOIL and OJSC Bashneft established a joint venture to develop Trebs and Titov fields. LUKOIL’s share in the project totals 25.1%.
R. Trebs and A. Titov fields are the largest onshore oil fields in Russia situated in the north-east of the Nenets Autonomous Okrug. Both fields are on the Sadayaginskaya bench of the Khoreiver depression.
Volga Region’s oil production commenced in the 1930s and up until the late 1970s it was the country’s largest region in terms of proved reserves and oil production.
Volga Region is the Company’s traditional oil and gas production region. LUKOIL commenced its operations here in 1995 when the region’s producing enterprises were transferred into its authorized capital by the Russian Government’s order.
The region accounts for 5.9% of the Group’s proved oil reserves, and 7.9% of the Company’s oil production. Over the last 5 years Volga Region’s share in the Group’s total oil production increased from 4.3% to 7.9% mostly due to the growth in the Northern Caspian Sea.
LUKOIL has pioneered the development of the Russian sector of the Caspian Sea bed and set the ground for nine field discoveries with combined recoverable reserves of 1.1 billion tonnes of reference fuel in this region.
The Urals region is the Company’s traditional oil and gas production region. LUKOIL commenced its operations here in 1995 when shares in a number of the region’s producing joint-stock companies were transfered into its authorized capital by order of the Russian Government.
The Urals fields are relatively small in terms of reserves and are geographically dispersed. However, the very well developed transportation infrastructure that is available in this region, as well as the Company-owned refinery and gas processing facilities significantly improve performance of field development operations. The use of cutting-edge technologies helps improve the oil recovery and increase the region’s production.
In 2016, the region accounted for 16.6% of the Company’s provedproved reserves and 16.7% of oil production. The specifics of prospecting activities in Perm Krai are that there are numerous natural protection and water protection zones here within the areas of occurrence of potassium and magnesium salts. In order to comply with the environmental law and its corporate environmental policy, the Company developed and implemented special energy saving technologies, as well as seismic and drilling techniques.
In 2016, oil production in Urals region grew by 1.5% to achieve the figure of 15.4 million tons. The region accounts for 16.7% of the Company’s total production. The region’s oil production constantly growing due to production drilling and geotechnical activities with the existing and idle stock of producing and injection wells.
LUKOIL commenced its operations here in 1995 when shares in a number of the region’s producing joint-stock companies were transferred to its authorized capital by order of the Russian Government.
The main prospects in
the region are related to the development of shelf fields in the Baltic Sea.