Exploration and extraction

3% of the resources of the most explored Anadyr oil and gas basin have been well explored. Water area resources have scarcely been explored and almost all of them (99.6%) are related to category Di.

Table 1. Exploration of the Chukot Autonomous Okrug territories and neighbouring water areas by prospecting seismology and deep drilling (according to the Russian Institute of Geological Exploration):

 Deep drilling
Number of wellsvolumedensity
Anadyr
land18 14,740 0,85 59 139,439 7,4
Sea35 24925 0,71 1 2,785  
Hatyr
land 4 787 0,2 11 22,918 5,9
Sea 23 7,875 0,3 - - -
Other basins and interbasin areas
land 34 30,0 0,001 2 5,951 0,17
Sea 66 12,020 0,2 - - -

Oil and gas fields in Chukotka Autonomous Okrug have been so far discovered in two oil and gas basins, Anadyr and Hatyr. As of 01.01.2005 four open fields contain 40.9/9.6 tons of oil and 9.8 bln m3 of gas (A+B+Ci+Cg), which totally makes 8.3% of all resources of these basins.

At present exploration of hydrocarbon fields of CAO is undertaken by Gaspromneft-Chukotka Ltd, a subsidiary of Gaspromneft PJSC (formerly Sibneft).

1. The company has licenses for 30% (17.3 km) of prospective water area of Anadyr and Hatyr oil and gas basins and for the majority of known mainland fields.
2. In 2001 and 2005 upon orders of Gaspromneft-Chukotka on 3 spots of the Anadyr oil and gas basin detailed seismic explorations (total volume 8.7 thousand linear kilometres) were carried out.
3. In summer 2002 in Central Anticline, 180 km away from the shore, the first oil-well (2785 m deep) in the Russian sector of Bering Sea was built, but no oil fields have been discovered yet.
4. Now further exploration of Upper-Telekai field and Laguna caving is under way. In the first field they have already found promising resources but nothing explored in the Laguna caving yet.
5. Gaspromneft-Chukotka Ltd has been making preparations for geological works (seismic exploration, drilling) in another five prospective spots: in 3 spots of Anadyr oil and gas basins (2 in shelf area of the basin) and 2 of Hatyr basin.

Licenses valid for 25 years were given to the winner of the contest which was arranged by Chukot Geological Committee and administration of CAO in the middle of the 90s.

Oil and Gas Fields

4 oil and gas fields have been discovered in Upper-Telekai, Upper-Echin and Olhovoe (oil) and North-Ozer (gas). In Hatyr oil and gas basin only one oil field, Uglovoe, has been discovered.

Oil

Total explored and extracted oil resources of Anadyr basin are estimated at 2.3 mln tons. Productiveness of the wells did not exceed 177 m3 /day (on 14 mm connecting pipe). Light oil – 0.823-0.858 g/cm3, low-sulfur oil – 0.1% and paraffin oil – 25%.

At the beginning of the industrial extraction, volumes of extracted resourced should be not less than 5 mln tons. Increase in extracted volumes can be reached by exploration and discovery of new hydrocarbon gatherings and further exploration of existing fields. Particularly the results of exploration of well No. 10 of the Upper-Telekai field (in 2004) give grounds for re-estimation and increase in explores resources of the field.

In maximum rate of selection of already explored resources of 5%, yearly volume of extraction of oil can reach up to 500 mln tons, which at its processing in local oil refineries will provide the Okrug with half of oil needed.

Corner oil field of light (0.828 g/cm) low-paraffin oil. Within the bounds of Hatyr basin equal proportion of liquid and gaseous hydrocarbons is expected. But in the extracted bit there is 70% of gas. There is a possibility of discovery of single oil fields, class 3, 10 mln tons and gas, class 3, 10 bln m3.

Gas

In West-Ozer basin gas has been found in 13 bedded arcs and 3 litholic screen beds 356 – 942 metres deep underground. Maximum flow rate of gas reached 150 – 250 thousand mi a day on 28 washers 14-18 mm each. Nonsulfur methane (97-99%). In 2002 Sibneft-Chukotka Ltd drilled 4 wells on the field. The field is already being explored and gas is running in the 104,2 km-long pipeline to the Anadyr gas-run power station with the capacity of 30 Mwatt. The maximum annual volume of extraction from profitable explored gas fields can reach the figure of 600 mln cubic metres. This volume is enough for replacement of coal by gas of the customers attached to the pipeline.

Besides the fields that bring up to 3 mln tons of oil and 10 bln m3 of gas, they forecast a number of class-3 oil accumulations and medium size gas field of 10 – 30 bln m3 in the Anadyr basin.
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COMMENTS
First of all, the long-term program leans on resources of peninsula. Let’s begin that geological resources of Chukotka are explored today on 10 %-17 %. The next regions are explored much better. And even on these, tentative estimations resources here can be found. The proved resources of gas on the Priosernoe deposit - 7,3 billion cubic meters. Oil resources are estimated approximately in 10 million tons, the proved stocks make 4 million tons of them. They are dispersed on small Fields, such, as Hatirskoe, where extraction is conducted by "Sibneft" company. But it is not necessary to dismiss a shelf – it’s insufficiently studied yet, but there are data, that it’s resources can make up to 14 billion tons of conditional fuel. Exxon Mobile Company in similar ice conditions, in Baffin bay has constructed 7 platforms. What prevents to construct them here?
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There was a moratorium on an industrial slaughter of deers in district till 2006. But now it is removed, farms have allocated a contingent for commodity slaughter this year. It is planned to hand over in a trading network about 9 thousand deers this year. Within the limits of national project the agrarian and industrial complex have got slaughter area on terms of financial leasing which is assembled in Kanchalan. Basically its value is in that correctly cut production will receive a trade look and will answer all established norms. The livestock of deers for September, 1st - from above 183 thousand. It’s below the level of 1990 (490 thousand heads), nevertheless, in Chukotka a livestock grows on faster rates, than on Yamal, and it’s our main competitor. Potential market - not only Vladivostok, but also Japan, Korea, China. Reindeer breeding is, at least, preservation of a traditional way of life of native people and food safety of region and when sales volumes become great enough, branch can turn in profitable.
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