08 June 2004 04:01
SPD plans $210-$215 mln investment in Salym deposits in 2004
The company plans to invest a bit more in 2005, Rollins said. By
the end of this year, SPD will have invested $300 million in the
KHANTY MANSIISK. June 8 (Interfax) - Salym Petroleum Development (SPD), which is developing the Salym group of oil
deposits in Russia's Khanty Mansiisk autonomous district, plans to invest $210-$215 million in the project in 2004,
SPD's general director Dale Rollins announced at a Tuesday press conference.
Plans call for much of the investment to be put into
infrastructure. SPD is looking to complete in November of 2005 the
project, and that will rise to $500 million in the coming year. SPD is a joint venture of Sibir Energy subsidiary
Evikhon and Shell.
building of a $60 million trunk pipeline joining the company's deposits to the Transneft system. SPD has a quota
for the system of 35%-40% of extraction, Rollins said.
The company will also begin building facilities for oil preparation on July 1 this year costing an estimated $80-$100
million and with 40,000 tonnes/day capacity. This should be completed by the end of next year.
SPD is currently working the Zapadno-Salym deposit and drilling its second production well. The first took 33 days to
drill and has already been mothballed; the second should take 21 days (plans call for cutting that to 15 days). All
told, there will be 244 wells drilled at this site before 2010.
SPD is extracting industrial volumes at the Verkhne-Salym deposit, where roughly 80% of the deposit group's
reserves are. Rollins said the company plans to begin test work at the Vadelyp deposit in 2006, industrial production a
year later. It estimates C1 and C2 reserves at the three licensed sites at 183-185 million hectares, and is hoping that
will increase after further seismographic work.
The region has great potential, Rollins said, estimating the cost of extraction at the Salym deposits at $2-$2.3 per
barrel, depending on the calculation parameters. [RU EUROPE EEU ASIA EMRG CRU TRD ENR ENQ GB NL] cf
[Interfax] |
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