NOVATEK aims to expand its resource base through geological exploration at fields and license areas not only in close proximity to existing transportation and production infrastructure, but also in new potentially prospective hydrocarbon areas. The Company ensures the efficiency of geological exploration work by deploying state-of-the-art technologies and relying on the experience and expertise of the specialists in its geology department, and the Company’s Scientific and Technical Center located in Tyumen.
The Company uses a systematic and comprehensive approach to exploration and development of its fields and license areas, beginning with the collection and interpretation of seismic data to the creation of dynamic field models for the placement of exploration and production wells. We employ modern geological and hydrodynamic modelling as well as new well drilling and completion techniques to maximize the ultimate recovery of hydrocarbons in a cost effective manner. With this approach, we are able to carry out prospecting, exploration and production in a cost effective and environmentally prudent manner.
In 2020, NOVATEK mostly conducted geological exploration in the Yamal and Gydan peninsulas to ensure timely and efficient preparation of the resource base for future LNG projects.
Following seismic surveys and exploration drilling, the Utrenneye field's reserves are now estimated to be higher. The upside was primarily due to successful exploration of deeper Jurassic deposits. It was demonstrated the field's southern dome stretches further below the Ob Bay offshore area at the Cenomanian and Aptian-Albian layers. Our PRMS reserves (2P) increased by 1,919 million boe and totaled 1,434.3 bcm of natural gas and 89.8 mmt of condensate.
Two onshore exploration wells drilled and tested at the Geofizicheskoye field demonstrated significant productivity of the Cenomanian and Aptian-Albian deposits. The Geofizicheskoye field's PRMS reserves (2P) increased by 109 million boe and totaled 314.2 bcm of natural gas and 4.5 mmt of condensate. Exploration activities continue at the field.
We have fully ramped up the exploration activities under the Obsky LNG Project at the Verkhnetiuteyskiy and West-Seyakhinskiy license areas. An exploration well and two exploration sidetracks in production wells were drilled and tested. These helped demonstrate the productivity of the Aptian-Albian and Neocomian deposits with high condensate content and allowed us to acquire data on fluid composition for the purposes of LNG plant design.
The Gydanskoye and Soletsko-Khanaveiskoye fields remain in the active development stage. The fields have been covered with 2,780 sq. km of 3D seismic surveys. Data processing and interpretation demonstrated high prospectivity of the Achimov deposits. Three wells were drilled and tested to demonstrate the prospectivity of the Gydanskoye field's Cretaceous deposits. Three new gas condensate Cretaceous deposits and two gas condensate Achimov deposits were discovered. A prospecting well was spudded at the Soletsko-Khanaveyskoye field with the testing results confirming the field’s resource potential.
Exploration of deeper Jurassic deposits and maturation of key development targets is ongoing at the South Tambeyskoye field. We commenced production for the first time from a Jurassic multi-frac horizontal exploration well with the initial gas flow rate of 453,000 cm/day and the initial condensate flow rate of 108 t/day.
In order to maintain the pipeline gas production level and the volumes sent to the Purovsky Plant, we carried out exploration within the fields and license areas located in the Purovskiy and Tazovskiy districts of Yamal Nenets Autonomous Region.
The Kharbeyskoye oil, gas and condensate field was prepared for development activities following the drilling and testing of two exploration wells. Production at the field is scheduled to start in 2021.
Further exploration is ongoing for target zones in the Yurkharovskiy cluster, including the Yurkharovskoye, West-Yurkharovskoye and Nyakhartinskoye fields. We ran 1,004 sq. km at these locations with 3D seismic surveys. The testing of an exploration well in the Nyakhartinskoye field demonstrated the productivity of the Neocomian and Cenomanian deposits.
Exploration is ongoing within the Samburgskiy and Osenniy license areas for the purposes of developing Achimov condensate-rich deposits. In 2020, two exploration wells were completed within the Samburgskiy LA and we also ran 504 sq. km of 3D seismic surveys within the Osenniy LA.