Rosneft, ExxonMobil agree to joint Western Siberia tight oil pilot

Rosneft and ExxonMobil Corp. signed a pilot development agreement finalizing a previously announced joint project to assess the possibility of commercial production of tight oil at the Bazhenov and Achimov formations in Western Siberia.

The agreement supports implementation of the companies’ August 2011 long-term strategic cooperation agreement (OGJ Online, Aug. 30, 2011).

The joint venture will run a pilot program with Rosneft holding 51%. Work will be carried out at Rosneft’s 23 license blocks covering more than 10,000 sq km. Drilling is expected to begin in 2013.

Rosneft and its production subsidiaries will provide workers and access to existing infrastructure. ExxonMobil will provide up to $300 million in financing along with technologies and expertise. In addition, ExxonMobil will provide production management services for drilling complex horizontal wells.

The pilot program will include drilling new horizontal and vertical wells using the latest fracturing technologies, deepening existing wells, and redevelopment of idle wells.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...