Offshore projects are a strategic line of JSC Orenburgneft business activity. Geotekh Burenie is also part of the development of the Russian shelf. Most of the fields of the Sakhalin shelf have been discovered with the participation of the Company's specialists. The deposits of the Russian offshore projects "Sakhalin-1" and "Sakhalin-2", as well as the Kirinskoye field, were in course of geological prospecting works. Our specialists drilled part of Russia’s first horizontal well with an extended reach from the Sakhalin shore, in the Odoptu-Sea, the North Dome, therefore took part in the oil production at the continental shelf.
Today, the Company is the largest subsoil user on the Russian shelf: as of January 1, 2017, owns 15 licenses for the water areas of the Arctic, Far Eastern and Southern seas of Russia. The hydrocarbon resources in these areas are estimated at 41.5 billion tons of oil equivalent. The Company also implements the offshore project in the Black Sea. As of 01/04/2017, the Company conducts geological exploration of subsoil resources in 15 license blocks located on the Russian shelf and inland seas of Russia. 5 licenses were issued for the exploration and production of oil and gas, including the production of hydrocarbons at 3 sites. License obligations have been delivered in full.
In order to strengthen the Company’s position and to confirm the status of the strategic operator of offshore Arctic projects, in December 2015, JSC Orenburgneft initiated the signing of the Quadrilateral Declaration with key partners. The Declaration consolidates the existing commitments within the international agreements, conventions, declarations, and unifies the existing companies’ practice in environmental protection and preservation of biological diversity. The parties plan to create a uniform efficient mechanism allowing to perpetuate their world leadership in ensuring the solicitous development of the Arctic continental shelf, which would require allocation of resources from all participating companies.
A strategic line of JSC Orenburgneft offshore projects is the development of the continental shelf in the Arctic seas. In terms of their combined oil and gas potential, the sedimentary basins of the Russian Arctic shelf are comparable to the largest oil and gas productive regions of the world. Our experts estimate the Arctic shelf to cover 10 to 15 percent of all Russian oil production by 2040.