Economics

17:23, 24.03.2008 | Sakhalin Region

Rosneft has completed preparations for drilling at the Veninsky block in the Sakhalin-3 contract territory, Rosneft President Sergei Bogdanchikov said at a press conference in Yuzhno-Sakhalinsk on Friday.

The announcement came after Bogdanchikov met with CJSC Sakhalin Projects officials concerning drilling on the West Kamchatka shelf.

The actual drilling work will be carried out by Venineft LLC.



"The preparations for drilling an exploration well are normal. As always, the outlook for making a discovery is 50-50, based on the surveying. We will hope that the well is a success," he said.



Bogdanchikov recalled that the first exploration well under the Sakhalin-3 project was drilled in 2006. "I still can't say whether there are commercial reserves there. The data is being studied. We have had pretty good results. Analysis of the seismic data indicates that there will be an addition to the resource. We will wait until autumn and look

at the results of the work," he said.



Rosneft is ready to drill the first of two exploration wells on the West Kamchatka shelf in summer 2008. "Everything there is ready. The support base in the port of Magadan, where the components and supplies for the drilling platform will be stored, is being prepared. The contract on use of the platform has been signed. The equipment for the two wells will be

purchased and delivered to the port soon," he said.



"As for the results of the exploration, we will wait. The 3D seismic surveying we carried out (which significantly exceeded the license obligations) indicated a sufficient quantity of potential oil resource, and firmed up our views of the structures themselves," he said.



Claims against Kamchatneftegaz leveled by natural resource watchdog Rosprirodnadzor remain in force, Bogdanchikov said. "But Rosprirodnadzor has given us six months in which to make preparations for the start of the field and drilling season. The measures recommended by Rosprirodnadzor to eliminate the shortcomings uncovered are being carried out," he said.



Rosprirodnadzor charges that Kamchatneftegaz has materially violated the timetable for and volume of drilling work at the fields stipulated in the license.



One well will be drilled at the Veninsky block at the North Veninsky structure and two wells will be drilled at the West Kamchatka shelf at the West Sukhanovksy and North Krutogorovsky structures, he said. Each well will have a depth of more than 3 kilometers.



Rosneft has a 74.9 percent stake in the Sakhalin-3 project at the Veninsky block, while China's Sinopec has a 25.1 percent stake. Venineft is the operator of the project and the owner of licenses for the geological exploration of the Veninsky block's resources. Sinopec will finance 75 percent of exploration costs at the block. Rosneft will finance 25 percent of the costs out of its own resources. Investment in the project reached $69.8 million by Jan. 1, 2007.



The resources of the Veninsky block are tentatively estimated at 169.4 million tons of oil and 258.1 billion cubic meters of gas. The Veninsky license district covers some 5,300 square kilometers of the shelf of the Sea of Okhotsk at a depth from 25 to 150 meters. Six promising structures were identified at the block given the analysis of seismological materials.





Interfax