Rosneft Announces Record Hydrofracturing at Urengoiskoe Field

Russia is trying to maintain its centrality in the gas markets through a mix of renewed efforts in the upstream and a stronger cooperation with China. 

Indeed, on Tuesday, Russian companies unveiled some new investments, while the Kremlin was holding talks with China’s Prime Minister Li Keqiang.

Rosneft said that its subsidiary Rospan International performed hydraulic fracturing at the Urengoiskoe field which resulted in a significant increase in production rate. 

‘Following the results of the well performance, gas flow rate increased from 70 to 600 thousand cubic meters daily, and condensate increased from 12 to 200 tons daily. Meanwhile, bottom hole pressure is close to dew point pressure, which provides optimal conditions for the deposit exploitation. New approach to hydrofracturing allowed to increase the efficiency of operated activities by 50%,’ Rosneft wrote on Tuesday. 

A few hours later, Gazprom Neft announced additional investment in the Orenburg region. 

‘Gazprom Neft Orenburg (a subsidiary of Gazprom Neft) has completed the 100% acquisition of OOO Yugra-Intek, which has a licence to search, explore and produce oil in the Kuvaisky licensing area in the Orenburg region,’ reads a note released by Gazprom Neft, adding that the company will continue the geological survey in the area close to the borders with Kazakhstan. 

The two announcements strengthened Russian strategy, which hinges on stronger ties with China.

On Monday, Russian and Chinese authorities signed 38 agreements, also covering the energy sector. According to Gazprom’s CEO Alexei Miller, the company could intensify its investments in infrastructures to China, to the detriment of its Vladivostok LNG project in Russia's Far East.