Russia’s largest oilfield may be about to gush cash once again

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https://www.bloomberg.com/news/articles/2017-02-15/siberian-oil-giant-that-bankrolled-soviets-may-gush-cash-again

Russia’s largest oil field, so far past its prime that it now pumps almost 20 times more water than crude, could be on the verge of gushing profits again for Rosneft PJSC.

Samotlor, the 25 billion-barrel giant that bankrolled the Soviet Union for decades, would be the biggest beneficiary of proposals to encourage investment in some of Russia’s oldest and largest reservoirs, where output is plunging. One idea being debated — cutting the extraction tax in half for fields producing a lot of water with the oil — could add as much as 90 billion rubles ($1.57 billion) a year to Rosneft’s earnings, said Alexander Kornilov, an analyst at Aton LLC in Moscow.

“It is a super giant field even today after almost 50 years of production, the elephant of elephant fields,” said Ildar Davletshin, an analyst at Renaissance Capital. “There is still a lot of oil left,” but production is costly because it takes 95 barrels of water to get 5 barrels of crude out of the ground, he said.

Samotlor changed the course of the Russian oil industry when it started production in 1969, moving its center of gravity to the swampy West Siberian plain from the Volga-Urals region. The field will never return to the glory days when it pumped a quarter of Soviet crude and funded foreign campaigns like the war in Afghanistan, but it still contains billions of barrels of oil.

Tax support for this and other aging reservoirs could help maintain near-record output from Russia — the world’s second-largest oil producer. It would also further cement the dominance of state-run giant Rosneft over the oil and gas industry, which provides about 40 percent of government revenue.

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“It is a super giant field even today after almost 50 years of production, the elephant of elephant fields,” said Ildar Davletshin, an analyst at Renaissance Capital. “There is still a lot of oil left,” but production is costly because it takes 95 barrels of water to get 5 barrels of crude out of the ground, he said.”

the super elephant amongst the herd..

“Samotlor changed the course of the Russian oil industry when it started production in 1969, moving its center of gravity to the swampy West Siberian plain from the Volga-Urals region. The field will never return to the glory days when it pumped a quarter of Soviet crude and funded foreign campaigns like the war in Afghanistan, but it still contains billions of barrels of oil.”

401

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~ by seeker401 on February 24, 2017.

6 Responses to “Russia’s largest oilfield may be about to gush cash once again”

  1. Reblogged this on World Peace Forum.

  2. Rosneft in Kurdistan:
    http://uk.mobile.reuters.com/article/amp/idUKKBN1600K4
    & Libia:
    https://www.bloomberg.com/news/articles/2017-02-21/rosneft-signs-libya-oil-deal-as-more-investors-return-to-country

    • Rosneft in India:

      http://af.reuters.com/article/energyOilNews/idAFL8N1G21U8

    • Rosneft PJSC, the state-run producer headed by a close adviser of Russian President Vladimir Putin, is expanding its footprint in the Middle East by striking new oil deals with Iraq’s Kurdish region and Libya.

      Russia’s largest oil producer agreed to buy crude from Libya’s National Oil Corp., the state-run NOC said Tuesday on its website, without specifying the amount. The deal also provides for Rosneft to invest in exploration and production in the North African country. The Russian company announced on the same day it will buy Kurdish oil until 2019 and will study exploration and production opportunities in Kurdish areas, it said in a statement.

      “These deals combine potentially good economics for Rosneft and good politics for the Kremlin,” Chris Weafer, a partner at Macro Advisory in Moscow, said Tuesday by e-mail. “Expect more deals from Rosneft in the Middle East and North Africa and across the developing world.”

      very interesting thanks..

  3. of course,
    Rosneft:
    – 19,75% BP,
    – 19% Glencore&Qatari Fund ,
    – 50%+ Russian state

    https://seeker401.wordpress.com/2016/12/14/19-5-of-russian-oil-giant-rosneft-sold-in-biggest-privatization-deal-of-2016/

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