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Lukoil, ConocoPhillips Announce Oil Production at Yuzhno Khylchuyu Field

Posted on: Friday, 29 August 2008, 09:00 CDT

Lukoil, an oil and gas exploration and production company, and ConocoPhillips have announced the startup of oil production at Yuzhno Khylchuyu field located in the Nenets Autonomous District, Russia.

The Yuzhno Khylchuyu (YK) field is developed by Naryanmarneftegaz, a Lukoil and ConocoPhillips joint venture (70% and 30%, respectively). The first stage comprises 32 development wells, an oil treatment unit, an oil desulfurization unit, a tank farm with the total volume of 40,000 cubic meters, a power supply complex with the rated capacity of 125MW, and other units.

Startup of the second stage of the YK field is scheduled for December 2008, at which time an additional 32 wells will be put into operation and a high-pressure compressor station and sulfur disposal and storage facilities will be completed. The design oil production level in the field is expected to reach 7.5 million tons a year in 2009.

Oil produced at the field is transported by a 158km-long oil pipeline to the Varandey Oil Export Terminal located on the Barents Sea coast, with the capacity of 12 million tons per year, from where it is delivered, also through a floating storage facility in Kola Bay, by 70,000 ton deadweight tankers, for eventual sale to European and North American markets.

Vagit Alekperov, president of Lukoil, said: "Commercial production at YK and the link to the new Varandey transportation corridor will intensify the development of resources in the Timan-Pechora oil and gas bearing province, which will certainly contribute to increased oil production in Russia."

Source: Datamonitor

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