The field is operated by Sibir’s subsidiary, Magma, and holds 49 million barrels of C1 and 5.3 million barrels of C2 oil, under the Russian reserves classification system.
This first development well is expected to take 30 days to drill to a depth of 2,800m. Magma, together with Russian contractors, is managing drilling operations and expects to put this first well on stream in June 2008.
Nine new wells will be drilled in 2008, which together with existing exploration wells, will be completed and fractured to bring total production from the field to 500,000 barrels by the end of 2008, the company said. An additional 12 wells will be put on stream in 2009 resulting in further incremental production.
The first phase of development is expected to require $95 million of capital expenditure for infrastructure and drilling. Infrastructure development will include construction of two well pads, an infield road, a power substation, power lines to the pads and a 22km pipeline to the existing central processing facility at Yuzhnoye where the crude will be brought to Transneft specification for transport.
