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Oil
Four fields have been estimated as prospective and their raw material potential exceeds 7.5 mln tons. Moreover there are another 5 prospective structures with total raw material potential of 27.9 mln tons.
All of these objects are viewed as quite effective if the raw stuffs are extracted and delivered to the internal market.
Upon the whole exploration of existing oil fields is in need of investment in the amount of $416 mln; need of investment into exploration of new prospective structures is estimated at $902 mln.
Experts estimate total investment needed for search and development of new oil fields of mainland and water areas in the 12-mile zone at $1.318 bln.
Gas
If the price for gas goes up to $90 / thousand m3, exploration not only of West-Ozer, but also Upper-Telekai fields as well as South-Kuul, Uval and Ivanov fields becomes profitable from economic point of view.
Need of investment for further exploration of gas fields is estimated at $20 mln dollars, for geological study of prospective gas objects – $135 mln. Total amount of investment for exploration of the gas potential of the Okrug is estimated at $575 mln, $94 mln of which are needed for industrialization of the fields.
Taking this figure into consideration another 5 prospective objects of total resource capacity of 10 bln mi of gas can be also included into the list of profitable fields.
Why is it financially attractive?
Chukotka oil and gas industry is attractive for investment because:
1.There is high possibility of discovery of new big fields during the course of geological exploration.
2.Support by the administration of the Okrug of projects aimed at decreasing the volumes of imported hydrocarbon fuel and development of own refineries (mini refineries, light oil-processing plants).
3.There are small explored fields ready for profitable development in Anadyr District; they would be enough to meet the needs of CAO.
4.Potentially high volumes of resources on the shelf, profitability of exploration of which increases in connection with intensive development of infrastructure of the Okrug.
Table. Forecast of increase in resources and levels of extraction of oil and gas on the territory of the Chukotka Autonomous Okrug (Anadyr oil and gas basin)
The most prospective investment directions are the following:
1.working out an optimal system of servicing of seaways and Chukotka seaports approach;
2.provision of reliable navigation and hydrographic equipment for servicing seaways along the coastline;
3.reconstruction of Bering seaport and deepening its seabed, which will allow to carry out loading and unloading from the pier.
Development prospectives of the branch are connected with: 1. presence of a big company which has enough resources to be invested into geological exploration and extraction (“Gaspromneft”). 2. gradual decrease in hydrocarbon resources in the Okrug of its traditional extraction, which makes the biggest Russian oil companies master shelf extraction technologies; 3. expansion of geological exploration of oil and gas in the northern regions of the world (hydrocarbons are used for development of regional fuel and energy complex and for export). World experience (Alaska, North Canada, Norway, etc.) shows that extreme climate and weather conditions, lack of infrastructure and remoteness from the customer are not an obstacle for exploration of oil and gas fields. High cost of drilling and building of oilfields, high costs of building pipelines and creating transport communications can be coped with by big companies that have big financial resources behind them.
Most likely the volumes of extraction by exploration of oil and gas shelf fields will increase immensely.
Four fields have been estimated as prospective and their raw material potential exceeds 7.5 mln tons. Moreover there are another 5 prospective structures with total raw material potential of 27.9 mln tons.
All of these objects are viewed as quite effective if the raw stuffs are extracted and delivered to the internal market.
Upon the whole exploration of existing oil fields is in need of investment in the amount of $416 mln; need of investment into exploration of new prospective structures is estimated at $902 mln.
Experts estimate total investment needed for search and development of new oil fields of mainland and water areas in the 12-mile zone at $1.318 bln.
GasIf the price for gas goes up to $90 / thousand m3, exploration not only of West-Ozer, but also Upper-Telekai fields as well as South-Kuul, Uval and Ivanov fields becomes profitable from economic point of view.
Need of investment for further exploration of gas fields is estimated at $20 mln dollars, for geological study of prospective gas objects – $135 mln. Total amount of investment for exploration of the gas potential of the Okrug is estimated at $575 mln, $94 mln of which are needed for industrialization of the fields.
Taking this figure into consideration another 5 prospective objects of total resource capacity of 10 bln mi of gas can be also included into the list of profitable fields.
Why is it financially attractive?
Chukotka oil and gas industry is attractive for investment because:
1.There is high possibility of discovery of new big fields during the course of geological exploration.
2.Support by the administration of the Okrug of projects aimed at decreasing the volumes of imported hydrocarbon fuel and development of own refineries (mini refineries, light oil-processing plants).
3.There are small explored fields ready for profitable development in Anadyr District; they would be enough to meet the needs of CAO.
4.Potentially high volumes of resources on the shelf, profitability of exploration of which increases in connection with intensive development of infrastructure of the Okrug.
Table. Forecast of increase in resources and levels of extraction of oil and gas on the territory of the Chukotka Autonomous Okrug (Anadyr oil and gas basin)
| Year | ||||||
| 2007-2010 | 2011-2015 | 2016-2020 | 2021-2025 | 2025-2030 | ||
| Increase in resources, Million tons/year. | 1 | 0,8 | 0,8 | 0,7 | 0,6 | 18.5 mln tons |
| Extraction, Million tons/year | 0,2 | 0,5 | 0,5 | 0,5 | 0,4 | 10.3 mln tons |
| Increase in resources billion m3/year. | 0,5 | 1,5 | 1,5 | 1,4 | 1,4 | 28 bln m3 |
| Extraction, billion m /year | 0,3 | 0,5 | 0,6 | 0,5 | 0,5 | 11.7 bln m3 |
The most prospective investment directions are the following:
- Further exploration of open oil fields of the Anadyr basin – up to 5-7 mln tons; Organization of oil refining at modular mini-refineries;
- Active geological exploration for discovery of new hydrocarbon fields and average yearly increase in oil resources of 0.6-0.8 mln tons and gas resources of 1-1.4 bln mi.
- Studying oil and gas capacities of territorial waters of CAO and cooperation in exploration work in water areas.
1.working out an optimal system of servicing of seaways and Chukotka seaports approach;
2.provision of reliable navigation and hydrographic equipment for servicing seaways along the coastline;
3.reconstruction of Bering seaport and deepening its seabed, which will allow to carry out loading and unloading from the pier.
Development prospectives of the branch are connected with: 1. presence of a big company which has enough resources to be invested into geological exploration and extraction (“Gaspromneft”). 2. gradual decrease in hydrocarbon resources in the Okrug of its traditional extraction, which makes the biggest Russian oil companies master shelf extraction technologies; 3. expansion of geological exploration of oil and gas in the northern regions of the world (hydrocarbons are used for development of regional fuel and energy complex and for export). World experience (Alaska, North Canada, Norway, etc.) shows that extreme climate and weather conditions, lack of infrastructure and remoteness from the customer are not an obstacle for exploration of oil and gas fields. High cost of drilling and building of oilfields, high costs of building pipelines and creating transport communications can be coped with by big companies that have big financial resources behind them.
Most likely the volumes of extraction by exploration of oil and gas shelf fields will increase immensely.
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