Zarubezhneft-Dobycha Kharyaga commenced gas sales ahead of schedule

Zarubezhneft-Dobycha Kharyaga commenced gas sales ahead of schedule

The first cubic meters of associated petroleum gas (APG) of Kharyaga PSA have passed the commercial metering point and were received at the Usinsk gas refinery operated by LUKOIL-Komi LLC for further processing. The gas supply commenced ahead of schedule, in accordance with the business plan the sales were planned for 2022.

The estimated volume of marketable gas sales is 18 MM nm3/year for the amount of 15 MM RUB. With the establishment of commercial relations with LUKOIL-Komi LLC the level of beneficial use of APG will reach 44%. Further increase to 74% will be possible after the commissioning of the amine gas treatment unit. It is planned to reach 95% by the end of 2021 after completion of the CPF modernization Stage VI.

Comment from the Russian Ministry of Energy: Kharyaga PSA has once again proved itself as an efficient and profitable project ensuring sustainable profit for the state and the investor. Early fulfillment of the gas delivery plans speaks highly of duly arranged work and accurately set priorities within the project team.

Comment from Total: We have many times said that participation in the Kharyaga PSA is important for Total. The achieved result is the indicator of concerted effort and professionalism of all the project participants. Total congratulates the colleagues with yet another achieved milestone and hopes for further mutually beneficial cooperation.

For reference:
In 2007 the gas sale and purchase agreement № 7У1928 dated 19.09.2007 with LUKOIL-Komi LLC contemplating deliveries of marketable gas in the amount of 260 000 m3/day was approved by decision of the United committee of Kharyaga № ОК/22/2. Until 2019 there were no gas deliveries under this agreement.

Kharyaga PSA is one of the three projects operating in Russia being implemented under production sharing terms (PSA). The Agreement came into effect in January 1999 and was made for 20 years with possible extension by 13 years. The production volume of Kharyaga PSA amounts to 1.5 million tons annually, and since 1999 the accumulated production has exceeded 21 million tons of oil. In July 2018 the participant singed the Addendums to the Kharyaga field development and oil production agreement on production sharing terms, according to which the term of the Agreement was extended till December 31, 2031.

The parties of the agreement are the Russian Federation represented by its Government and the Administration of the Nenets Autonomous Area as well as the Investor. Starting 2016 the shares of the participants were distributed as follows: Zarubezhneft Group of Companies (operator) – 40%, Statoil Kharyaga AS – 30%, Total E&P Rusie – 20%, Nenets Oil Company JSC – 10%. Zarubezhneft JSC is a Russian oil and gas company of strategic importance having rich history and unique 50-years of experience of external economic activities. The projects include operation offshore Vietnam in the framework of the joint venture “Vietsovpetro”, fields development in the Nenets Autonomous Area in the framework of the joint company “RUSVIETPETRO” and Kharyaga field PSA, application of technologies for the development of Cuban fields and downstream activities in the Republic of Srpska (Bosnia and Herzegovina).