Irkutsk hosted today a meeting of the Gazprom Gas Industry Commission for Field Development and Subsurface Use. The meeting was moderated by Alexander Ananenkov, Deputy Chairman of the Company's Management Committee.

Taking part in the meeting were Vsevolod Cherepanov, Member of the Gazprom Management Committee, Head of the Gas, Gas Condensate and Oil Production Department, heads and experts of the specialized structural units of Gazprom, Gazprom dobycha Irkutsk, Gazprom neft shelf, Gazprom razvitiye, Gazprom VNIIGAZ, Gazprom promgaz, VolgoUralNIPIgaz, VNIPIgazdobycha and TyumenNIIgiprogaz.

The meeting reviewed the proposals of Gazprom's research and design institutes on the fields development as part of the Irkutsk gas production center creation process. In particular, there were presented some conceptual approaches to the Kovyktinskoye field development in view of its geological and technological features as well as the main technical and technological solutions for the Kovyktinskoye and the Chikanskoye fields development.

It was highlighted that Gazprom planned to complete the development of the Kovyktinskoye field group, involving the organization of gas supplies to the Irkutsk Oblast consumers, creation of the gas processing facilities as well as the Irkutsk gas withdrawal from the region in the long term. In addition to the Kovyktinskoye and the Chikanskoye fields development, Gazprom plans to develop the productive deposits of the Khandinsky block. Gazprom has already submitted the application to Rosnedra for the right to use subsurface resources in the Khandinsky block.

In 2012 it is planned to elaborate a Feasibility Study of the Comprehensive Project for Gas Supply to Southern Irkutsk Oblast. The General Scheme for Gas Supply and Gasification of the region is expected to be updated once the document is reviewed.

The meeting participants paid special attention to processing of the multi-component gas of the Kovyktinskoye field, which is specific with high helium concentration. It was noted that Gazprom had successfully conducted the pilot tests of a domestically manufactured and membrane technology based helium separation facility at one of its fields in southern Russia. The facility is fairly compact and features a high performance. In fact, the results obtained by helium separation were better than estimated indicating the prospects of using membrane techniques for the Kovyktinskoye field and other helium fields in eastern Russia.

Following the meeting results, the specialized structural units of the Company and its subsidiaries were tasked to develop the most optimal technical and economic solutions for the resource base development in the Irkutsk gas production center.

Gazprom experts will make a business trip to the Irkutsk Oblast, including visits to the Kovyktinskoye and the Chikanskoye fields.

Background

The September 2007 Order by the Russian Federation Industry and Energy Ministry approved the Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Gas Program). Gazprom was appointed by the Russian Federation Government as the Program execution coordinator.

New gas production centers will be set up in eastern Russia, namely, the Krasnoyarsk, Irkutsk, Yakutia, Kamchatka and Sakhalin centers.

Geological exploration performed by Gazprom in the Yuzhno-Kovyktinskaya area led to the Chikanskoye gas and condensate field discovery. C1+C2 reserves of the field amount to 98.2 billion cubic meters of gas and 6.5 million tons of condensate. In 2008 the field was brought into pilot commercial operation.

In March 2011 Gazprom acquired the assets of RUSIA Petroleum via an auction procedure. This entitled the Company to receive the subsurface use license for the Kovyktinskoye gas and condensate field.

In October 2011 the license for hydrocarbon feedstock production and geological exploration in the Kovyktinskoye gas and condensate field was reissued to Gazprom pursuant to a decision by the Federal Subsurface Use Agency.

A+B+C1+C2 gas reserves of the field make up 1.5 trillion cubic meters, the recoverable gas condensate reserves – 77 million tons. Besides, the Kovyktinskoye gas and condensate field contains abundant reserves of helium.

The General Scheme for Gas Supply and Gasification of the Irkutsk Oblast was approved by the Directive of the Irkutsk Oblast Government in 2005 and updated in 2009.