Russia’s nonconventional reserves seen more promising than Arctic in next decade

Russian Gas Facility file photo

MOSCOW. Feb 26 (Interfax) – The development of nonconventional reserves of oil and gas in Russia in the next decade holds more promise than the Arctic, Gazprom Neft (RTS: SIBN) first deputy CEO Vadim Yakovlev told reporters.

He said nontraditional reserves will be developed before the Arctic. “They are no less important than Arctic reserves, but are now the priority compared to the Arctic,” Yakovlev said.

However, he said Russia does not yet have the technology for optimal extraction of nonconventional reserves. All companies are interested in this, but are at the stage of experimenting. “There are not yet any successful examples of these experiments in the development of nonconventional reserves in Russia,” Yakovlev said.

“If the technology can be acquired, on the horizon of the next ten years nonconventional reserves will make a more substantial contribution to production in Russia than production in the Arctic,” Yakovlev said.

He said Gazprom Neft is already working with nonconventional reserves at the Salym field with Shell, as well as independently at the Krasnoleninskoye field.

Gazprom Neft has a program to develop nonconventional reserves that projects that about 30 million tonnes of such reserves could be brought into production by 2020.