Rosneft discovers new oil, gas field at Russian Vostok Oil project

Moscow — Russia's largest crude producer Rosneft said July 23 that it has discovered a new field containing an estimated 20 million mt, or around 146 million barrels of oil, and 1 Bcm of gas, as part of its Vostok Oil project in Northern Russia.

Vostok Oil links some of the company's vast resources with the Northern Sea Route -- a development priority for Russia that ships to both European and Asian markets.

Russia is pushing for greater development of the Arctic despite high costs, difficult weather conditions, ecological concerns, and sanctions targeting some oil production there. Earlier this year Russian President Vladimir Putin approved tax exemptions to stimulate Arctic upstream oil and gas development.

Rosneft estimates Vostok Oil's resource base at around 5 billion mt of light, sweet oil. The project includes the Vankor cluster, the Zapadno-Irkinsky block, the Payakhskaya group of fields and the East Taimyr cluster. Rosneft said previously that the project may supply 25 million mt of oil to global markets in 2024. This may increase to 50 million mt in 2027, and 115 million mt by 2030. Rosneft has held talks with Indian and Western investors on joining the project.

The new field, named Novoogennoye, is on the border with the Krasnoyarsk Territory and the Yamal-Nenets autonomous region. Design documentation for additional exploration of the field and preparation for commercial development is currently being prepared, Rosneft said.

Rosneft Vankor, which discovered the field, is carrying out exploration work at 38 licensed blocks, and previously discovered the Baikalovskoye, Ichemminskoye and Gorchinskoye fields. It estimates that the resource potential of the Vankor cluster has more than doubled since commercial production began in 2009, including a 20% increase in oil reserves, and a 54% increase in gas.