Rosneft Commissions New Oil and Gas Production Cluster in Western Siberia

Rosneft started delivery of the first commercial crude oil from new Erginsky cluster to Transneft pipeline system. The Erginsky startup complex commissioning ceremony was attended by the the Prime Minister of the Russian Government Dmitry Medvedev and Rosneft Chief Executive Officer Igor Sechin.

Erginsky cluster comprises Erginskoe, Zapadno Erginskoe, Kondinskoe, Chaprovskoe and Novo—Endyrskoe fields located in Khanty-Mansi Autonomous District-Yugra. Their total reserves (AВС1+С2) amount to 259 mmt of oil. This is light, low sulfur oil conforming to Siberian Light export blend.

The cluster is created based on the integration of the infrastructure of Erginsky License Area with 103 mln t purchased at the auction in July 2017 and Kondinskoe group of fields. The total area of the licenses is over 5,000 sq. km. Exploration is continued in all license areas for development of the resource base.

Advanced methods of hard-to-recover reserves extraction will be applied for development of Erginsky project including real-time controlled horizontal drilling, multistage fracturing with ultrastrong polymer proppant, “smart waterflooding” and other enhanced oil recovery technologies. Hard-to-recover reserves production technologies which are already used by Rosneft at Priobskoe field will maximize the efficiency of development of the fields of Erginsky cluster.

The first startup complex comprises the main oil and gas production and oil transport facilities. Central processing facility (CPF) with the annual capacity of 2.3 mmt of oil and over 120 mmcm of gas at the first stage, 27 pads, 42 MW gas turbine power plant and HV power lines, camp and 68 km pipeline for delivery of oil to the Transneft oil pipeline system. All field equipment is made in Russia. 133 wells with total length of up to 4,500 meters have been already commissioned.

2,420 production wells will be drilled with 93% of horizontal production wells (23 drilling rigs will be used to drill them), over 100 pads will be built with required support infrastructure. The maximum annual production of Erginsky cluster will amount to 8.8 mmt. Around 5,000 new jobs will be created.

Erginsky cluster will be developed taking into account modern environmental requirements: by 2020 the efficient utilization of the associated oil gas will no less than 95%.

The startup of Erginsky cluster will maximize the efficiency of development of the resources of the main oil and gas production region of Rosneft presence with a developed infrastructure. The integral approach to development of Erginsky area purchased by the Company at the auction and Kondinskoe group of fields with integration of transport, power supply, and reservoir management systems will generate high synergy accelerating the development of the resource potential of the cluster. Well developed infrastructures of the Company's largest production asset RN-Yuganskneftegaz will be also used for development of greenfields in Khanty-Mansi Autonomous District.

Khanty-Mansi Autonomous District -Yugra is a key region for Rosneft where the following major assets of the Company are located: RN-Yuganskneftegaz, Samotlorneftegaz, Varyoganneftegaz, Nyaganneftegaz. The annual hydrocarbon production in the region totals to 137 mmt. Creation of a new oil and gas production hub in Western Siberia is one of top priority projects for Rosneft.

Rosneft Information Division
November 21, 2017