Repsol and Alliance Oil have begun commercial gas production from the Syskonsyninskoye (SK) field in the Khanty-Mansiysk region of Russia, marking the first success of the A&R Oil and Gaz (AROG) joint venture created to explore for and produce hydrocarbons in Russia.
Initial daily gas production is 855,000 m3 (5,350 boe/d) and is being delivered to the Gazprom transportation network. To date, 5 production wells have been drilled and 3 of them have been put into operation. Further development of the field in the coming year envisages drilling 6 more wells from 5 locations by early 2014. AROG’s total output currently stands at 25,000 boe/d and its proven and probable reserves amount to 278 mboe.
Repsol is increasing production worldwide based on the successful exploration portfolio built up over the last decade. In the last year, the company has added output from new projects in Brazil, Bolivia, the United States and Spain, and expects to start up the Kinteroni field in Peru this year. The company’s 2012-2016 Strategic Plan envisages annual production growth of at least 7% to reach 500,000 boe/d in 2016.