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. Therefore, most reserves within those regions are now being developed, and involvement of the remaining reserves in development operations does not require significant capital expenditures.
Western Siberia is the Company’s key oil production region (43.9% of the LUKOIL Group’s oil production), and its key resource base (50.0% 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 which, in combination with the well developed infrastructure, reduces the related development costs.
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).
Twelve of the Company’s nineteen major Russian oil fields (producing more than a million tons in 2015) are located in Western Siberia. The largest of them in terms of the reserves is Vat-Yeganskoye field (whose proved oil reserves as of the end of 2015 were 861 million bbl.).
Western Siberia accounts for 32.5% 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 key projects are also being implemented on a regional scale:
A number of key projects are also 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.
- V. Vinogradov field
The field is located within the boundaries of two license blocks — Bolshoi and Olkhovskiy.
- Bolshekhetskaya Depression
The basis of LUKOIL Group’s gas production operations in Russia is represented by the Bolshekhetskaya Depression fields, whose designed production comes to 20 bcm.
The Timan-Pechora oil and gas province prospects for production growth. The production prospects are connected with development of the Denisovskaya Depression and high-viscosity oil fields. The Company is expecting that the use of cutting-edge field development technologies will help speed up the commencement of heavy oil development operations, heavy oil reserves accounting for 4.7% of all the Company’s proved hydrocarbon reserves as of 2015. The Company’s proved heavy oil reserves are concentrated in two Timan-Pechora fields, Yaregskoye and Usinskoye fields.
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 18.2% of the Groups proved oil reserves, and 17.2% of oil production.
The southern Timan-Pechora (the Komi Republic) is a region with well developed infrastructure whose reserves are very well explored and almost entirely involved in development operations. At the same time, the area’s northern part (Nenets autonomous okrug) offers a significant resource potential but needs major investments into field exploration and development activities due to poor infrastructure.
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.
In 2015, the Company demonstrated impressive performance in Timan-Pechora: its oil production grew by 8.6%. The total production in Timan-Pechora came to 17.3 million tons. The Company is actively developing its priority projects in this region: Denisovskaya depression fields and the high-viscosity oil of Yaregskoye and Usinskoye fields. Also, in 2015 the Company increased oil production by more than 2.5 times (within its interest) in its joint venture with PJSC ANC Bashneft called Bashneft-Polyus LLC that manages the development of Trebs and Titov oil fields.
- Denisovskaya Depression
Includes Eastern-Laybeshorskaya and Bayandyrskaya field groups.
- 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%. The expected production plateau of the project is 4.8 mln t per year.
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. Due to the long development period the region now has well developed infrastructure, and development of new fields requires very little expenditures. 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. Due to the long development period the region now has well developed infrastructure, and development of new fields requires very little expenditures.
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 6.2% of the Group’s proved oil reserves, and 7.0% of the Company’s oil production. Over the last 5 years Volga Region’s share in the Group’s total oil production increased from 3.8% to 7.0% mostly due to the growth in the Northern Caspian Sea and acquisition of Samara-Nafta assets.
The Company’s largest field in this region with production operations is Pamiatno-Sasovskoye field. It produces high quality oil.
- Filanovsky field
V. Filanovsky field is one of Russia’s largest offshore oil fields. Commencement of production there is scheduled on 2016.
- Korchagin Field
Korchagin Field is located in the Russian Caspian Sea at depths between 11 and 13 m. The distance to the nearest shore (the Volga delta) is about 120 km. The nearest sea ports are Astrakhan (175 km) and Makhachkala (250 km), the closest railway stations are in Astrakhan, Makhachkala, Kizlyar and Derbent.
The Northern Caspian Sea in the mid-term perspective will become one of the key oil and gas production growth regions for the Group. As a result of successful geologic and prospective drilling in the region, growth of the proved hydrocarbon reserves compliant with international standards over the last five years reached 40%.
LUKOIL commenced its operations in the Northern Caspian region in 1995 when shares in a number of the joint-stock companies that held licenses to the Region’s reserve exploration, were transferred to its authorized capital. The Northern Caspian waters were then poorly explored, however, the estimated probability of major hydrocarbon reserve discovery was considered high.
As a result of the geologic exploration conducted by the LUKOIL Group between 1995 and 2007, six major fields were discovered, namely Yu. Korchagin field (2000), Khvalynskoye field (2000), the 170-km field (2001), Rakushechnoye field (2001), Yu. Kuvykin field (2002), and V. Filanovsky field (2005).Yu. Korchagin and V. Filanovsky fields that will be commissioned on a first-priority basis will account for the main oil production increment. The V. Filanovsky field is the Region’s largest field, besides, unlike the previously discovered fields it is mostly an oil field.
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 2015, the region accounted for 16.4% of the Company’s provedproved reserves and 15.0% 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 2015, oil production in Urals region grew by 3.0% to achieve the figure of 15.1 million tons. The region accounts for 15.0% of the Company’s total production. The region’s oil production has been constantly growing for 14 consecutive years with the average growth rate of 3.7% including due to production drilling and geotechnical activities with the existing and idle stock of producing and injection wells.
Kaliningrad Oblast is considered a promising region. Offshore prospecting activities in the Baltic Sea resulted in 3 oil field discoveries in 2015, including D41, D33, D6-southern.
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.
In 2004 the Company started commercial operation of the first Russian oil field Kravtsovskoye (D-6) at the Baltic shelf. The “zero-charge” based drilling and oil lifting operations are conducted from the OIRP that was constructed at the LUKOIL-Kaliningradmorneft steelwork plant. This is the first production platform at the Russian shelf designed and constructed by the Russian design and manufacturing enterprises.
- West Qurna-2 field
The target oil production output is 1.2 million bbl/day. In terms of this parameter, the field is in the world’s top five largest projects that are yet to achieve their peak production. The launch of production at this field confirmed that the Company is capable of independently dealing with management of mega projects and strengthened its positions as a global energy company.
- South-Western Gissar