Company News
BP And Rosneft Announce Partnership On Arctic Gas
Wednesday 3rd January 2018
Ravid
Rosneft and BP have announced that they are going to work together to develop subsoil resources in the area of Yamalo-Nenets Autonomous Okrug (YaNAO) in northern Russia.
This falls under the Kharampurskoe and Festivalnoye licence blocks of this region, where there are total geological reserves of over 880 bcm of gas.
The two companies will focus on two deposits - the Cenomanian deposit and the Turonian deposit. The former hosts traditional gas reserves and will be developed, while the latter will require pilot production before full-scale production can begin.
In addition, Rosneft and BP will work to optimise oil production and improve its efficiency.
Rosneft CEO Igor Sechin commented: "Our companies have all the necessary competencies and experience to effectively implement such complicated projects."
The Russian firm will have a 51 per cent share in the joint venture, with BP taking a 49 per cent share. The organisations are now awaiting the relevant regulatory approval before they can proceed.
Oil Price noted that, despite US sanctions against Russia relating to shale gas deposits, the partnership should still go ahead. This is because the US sanctions are very specific in that they cover shale deposits that require hydraulic fracturing.
Although the Rosneft/BP partnership will be targeting unconventional gas deposits, the news provider explained that the ones in question are in limestone, a rock that's deeper than shale, but that also requires hydraulic fracturing in order to release the gas held there.
You need the best-quality equipment for ventures of this nature, which is why you should invest in Hy Lok fittings for such projects.
