Rosneft appoints new Shatsky Ridge chief
MOSCOW. Aug 22 (Interfax) - Rosneft has appointed a new chief for its Shatsky Ridge LLC (Val Shatsky) subsidiary, the holder of the license to the Western Chernomorsky section in the Black Sea, which the company plans to develop in conjunction with Italy's Eni.
Rosneft told Interfax that Igor Vinarsky replaced Alexander Nevsky. The company's press office did not disclose the reasons for the change.
Rosneft says in information that the change took effect on August 14.
The licensed block has 10 fields, the biggest of which are North Chernomorskaya, Mariya and Sklonovaya. The sea depth is 1.2-2 km. The Western Chernomorsky section borders on Rosneft's Tuapse section. Overall resources are estimated at 6.3 billion barrels of oil. Projected D2 hydrocarbon reserves at Shatsky Ridge have been estimated at 1.456 billion tonnes of oil and 433 billion cubic meters of gas.
Rosneft and Chevron agreed to work together at Shatsky Ridge in June 2010. However, in March of the following year, Chevron withdrew from the project because of differences over the geology and estimates of reserves. Rosneft and Chevron drilled a dry well which detected magnetic anomalies at the section, evidence of volcanic formations in the rocks. Volcanic rocks have low permeability, and organic matter does not accumulate in them, which complicates reservoir formation.
Rosneft and Eni in April this year signed an agreement on strategic partnership and an agreement on the creation of a joint venture for the development of the Fedynsky and Central-Barents sections in the Barents Sea and the Western Chernomorsky section in the Black Sea. Eni's stake in this JV will be 33.33%. Eni will provide all funding for exploration as per the license agreement, and the companies will fund exploration over and above that stipulated by the license on a pro-rata basis.
Rosneft and Eni estimate investment in Shatsky Ridge at $50 billion-$55 billion. Drilling should begin in 2015-2016.
