Shell to start seismic explorations at Barun-Yustinsk section in Kalmykia in 2011
ELISTA. Jan 28 (Interfax) - Anglo-Dutch company Shell plans to start seismic exploration at the Barun-Yustinsk section in Kalmykia by midyear, Yevgeny Boyarshin, general director of Shell Exploration and Production Services (RF) B.V., said at a meeting between Kalmykia's authorities and oil and gas producers.
"The section is not simple. It is located at subsoil layers at depth of seven kilometers. We expect to encounter very high temperatures and pressure and heightened hydrogen disulfide content. We will prepare ourselves for this," Boyarshin said, adding that the subcontractor for this operation would be determined in the next two weeks.
To date, 10 companies have submitted applications for the section. The main requirement in the selection progress is a high level of technical safety and readiness to halve the period for seismic exploration.
Boyarshin added that Shell plans to meet its license obligations to the fullest extend. This includes monetary payments, implementing social programs and background surveys of the region's environment. "We are starting work with Russia's Union of Ornithologists since many rare birds can be found in our territory. Additional archeological research has been carried out, which identified memorial sites and all existing shafts in this section. We are now ready to move on to seismic exploration," Boyarshin said.
Shell paid 12 million rubles for the licenses to the Barun-Yustinsk section. The company plans to hold seismic research at the section over 1,400 kilometers in length over a three-year period. Shell is obliged to start drilling operations through one exploration well in the fourth year.
The section's C3 gas resources come to 2.172 billion cubic meters and D1 - 15.62 bcm. The section's total territory covers 2,597.4 square kilometers. The Shadzhinskoye and Mokitinskoye gas fields are not included in the Barun-Yustinsk section.
