Power: Total suspended participation in the project on extraction of difficult reserves in Ugra


YEKATERINBURG, October 16. French oil company Total suspended its participation in the project on development of subsoil areas due to restrictions on the ability of its work with hard-to-recover reserves in Russia, said first Deputy Director of the Department of mineral resources of Khanty-Mansi Autonomous area-Yugra, Anatoly Protasov.

“At the present time the project on exploration of subsoil plots of total suspended because of restrictions on the ability of the company Total hard-to-recover reserves in Russia. In the future we plan to implement the project on the territory of Yugra together with NK “LUKOIL” – said Protasov.

Earlier, the Governor of the region Natalia Komarova said at the international investment forum in Sochi that Total because of the sanctions changed its plan to participate in the project in the field of exploration and exploitation of unconventional hydrocarbon reserves in KhMAD-Yugra.

“In 2014, we did not lose hope that they (Total – approx.) will be able to reach hard-to-recover reserves, they have good technology. We were looking forward to their participation in our projects, but because of the sanctions structure of relationships has changed. We expect that LUKOIL will manage these projects,” said Komarov.

About the project LUKOIL and Total

At SPIEF-2014, LUKOIL and Total signed an agreement on the General terms of participation of companies in joint project in the field of exploration and exploitation of unconventional hydrocarbon reserves in KhMAD-Yugra. In accordance with the agreement for the implementation of the project was planned to create a joint venture, the shares in which were to be distributed as follows: LUKOIL – 51%, total – 49%. In the pilot project, a joint venture, according to agreement, was to conduct seismic research, evaluation and surveys, including drilling of appraisal wells on the subsoil plots that contain carbonaceous layers of the Bazhenov formation and its underlying low-permeability sweet.

It was also intended that the pilot project will be implemented on Galyanovskoe license area, the rights to use subsoil which has JSC “RITEK” (part of LUKOIL group), and to the East of Kovno, Tushinskom and leninskom-3 license areas, the rights to use subsoil which has a group Total, combined area of 2.7 thousand sq. km.