Russia: Repsol, Alliance Oil Begin Gas Production

Repsol and Alliance Oil have commenced commercial gas production at the Syskonsyninskoye in the Khanty-Mansiysk region of Russia.

The field, which was developed by A&R Oil and Gaz (AROG), a joint venture between the two firms, is producing 855,000 cubic metres per day from three wells. This is only the first stage of production for the joint venture, which expects to have 11 wells functional and in operation by the end of next year. Two more production wells have already been drilled on the field with six more to be completed at five locations  by the end of 2014.

This is the first commercial success for the joint venture so far in Russia but adds to an already sizable portfolio of assets. With the addition of the 5,350 barrels of oil equivalent per day (boepd) being produced from the Syskonsyninskoye field, total output for AROG has grown to 25,000 boepd. The joint venture also has proven and probable reserves of 278 million boepd.

In a joint statement today, Repsol and Alliance Oil says the companies will continue to look for new hydrocarbon potential in Russia.

"This first successful start-up through AROG is especially satisfying for us as we contribute to unlock the great potential of an area which will continue to supply large volumes of gas to the domestic market in coming years," Generla Manager of Repsol Russia Fernando Martinez Fresneda said. 

The produced gas is now being fed into the Gazprom transportation network.