Alliance Oil Starts Gas Production in Tomsk Region (Russia)

Alliance Oil Starts Gas Production in Tomsk Region

Alliance Oil Company has completed infrastructure development and launched gas production at the Ust-Silginskiy field in the Tomsk region. The Company has started delivering gas via a 43-kilometer pipeline from the field to the Gazprom trunk pipeline. A gas sales contract has been signed with Gazprom’s subsidiary.

A gas treatment unit, a 43-kilometer pipeline, a custody metering station and a number of supplemental units such as a power station, a helicopter pad, a water inlet system and residential blocks have been constructed. To date, 5 production wells have been drilled and 3 of them have been put into operation with gas flowing into the pipeline. Initial daily gas production amounts to approximately 700 thousand cubic metres (about 4,500 barrels of oil equivalent).

In October 2012, Alliance Oil Company announced the agreement to acquire 100% of the shares in LLC “SN-Gazdobycha” (SNGD). SNGD holds the Ust-Silginskiy and Kargasokskiy-2 license blocks covering an area of about 1,323 square kilometers located approximately 55 kilometers west of the town of Kargasok, in the Tomsk region in Russia. The Ust-Silginskiy license block consists of the Ust-Silginskiy, Middle-Silginskiy and North-Silginskiy gas fields while the Kargasokskiy-2 block consists of the Beloyarskiy, Silgniskiy and West-Silginskiy gas fields.

In 2013 the Company plans to drill additional wells to increase the production from the license blocks.

“We are pleased to announce the successful launch of Alliance Oil’s first commercial gas production, following the recent acquisition. Gas will increasingly contribute to the Company’s production, revenue and results in coming years and with the Ust-Silginskiy field on stream, Alliance Oil has taken an important step towards its double digit growth targets”, said Arsen Idrisov, Alliance Oil Company’s Managing Director.

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LNG World News Staff, February 13, 2013; Image: Alliance Oil