24 Nov 2009 17:14

Salym Petroleum to open two new deposits at Vadelyp field in 2011

MOSCOW. Nov 24 (Interfax) - Salym Petroleum Development (SPD, a joint venture of Shell and Sibir Energy) plans in 2011 to start development of two new deposits at the Vadelyp field, the company's head geologist, Vladimir Chernyakov, told Interfax.

"Unfortunately, too much time is passing for preparing and defending project documents and receiving all authorization. In March 2008, we discovered two new deposits at the Vadelyp licensed section and plan to introduce their development only in 2011. The deposits' reserves have been confirmed by the State Commission on Reserves," he said.

According to the commission's estimates total reserves at the deposits come to around 3 million tonnes of oil.

Chernyakov added that the company had already prepared project documentation for developing the deposits. Agreement on the main documentation will be complete in 2010.

SPD's CEO, Simon Durkin, was quoted as saying that production at the Salym fields had reached 150,000-160,000 barrels of oil a day. The company plans to maintain this production rate over the next two to three years.

In 2009, SPD also drilled two wells at the Bazhenovskoye layer but these deposits are very difficult for development. According to the company's management, developing them would not be advisable given current oil prices.

In 2008, the company's production increased by 50% to 6.3 million tonnes of oil.

SPD is developing the West Salym, Upper Salym and Vadelyp fields.