ENERGY FOR PEOPLE - JSC Gazprom Neft

JSC GAZPROM NEFTANNUAL REPORT2009INNOVATIVE ACTIVITIESThe main objective in the area ofscience and technology is acceleratedimplementing of new technologies,introducing new technical equipmentto ensure dynamic development ofproduction.The priority science and technologyaspects for Gazprom Neft are thefollowing:AAUsing geographic methods todiscover potential gas and oildeposits;AAConducting production log testsin pioneer, exploration, anddevelopment wells in order to dissectthe geological cross-section, findpay horizons, assess technicalconditions of the well and monitorfield development;AAConducting research, experimentaland methodological, pilot-plan works,to increase geological and economicefficiency of the geophysicalresearch, improving its methods andtechniques;AADevelopment, testing andimplementation of new technicalequipment and technologies forstudying the subsurface, naturalcompletion, lowering expenses perton of produced oil;AACreating science and technologyproducts: design and technologicaldocuments, plans for developingfields and producing oil, technicaleconomicproposals and justifications(TEP, TEJ), including geologicaland hydrodynamic models, otherdocuments needed for developingnew fields of hydrocarbons;AAFurther improvement of designmethods and control over fielddevelopment at later stages,creating permanent geological andmathematical models.EXPLORATION AND PRODUCTIONTECHNOLOGIESinnovations. This concept defines themain goals, objectives and principlesof the Company’s policy on managingprotection of intellectual property.In 2009, Gazprom Neft-NTC LLC spentthe following amounts on science andtechnology:AAgeology and exploration — 698.7 mlnrub. (179% increase compared to2008);AAdesign and control over development— 812.9 mln rub. (184% increase);AAplanning and surveying — 109.5 mlnrub.The main purpose of innovations inexploration is developing efficientsurvey complexes, improving reservesestimation methods, lowering geologicalrisks and reaching precision inidentifying exploration targets.In 2009, JSC Gazprom Neft conductedgeotechnical operations (GTO) at 1,088wells, this resulting in extra productionof 4,705.8 th. tons of oil.One of the most important results of theCompany’s technology improvementis extensive use of oil productionintensification and enhanced oilrecovery (EOR) methods. In 2009 totalproduction from the EOR operationsconducted in the reporting year (withoutthe carryover effect) was 1.13 mln tonsor 2.3% of the Company’s total output.These methods allow Gazprom Neftto substantially increase recoverablereserves and bring into productionlow quality reserves (high viscosity, inimpermeable reservoirs).The Company uses physical, chemical,hydrodynamic and thermal recoverystimulation methods. The bulk ofadditional production was attributableto physical methods, first and foremost,to hydraulic fracturing (HF) — 378 th.t. Hydrodynamic and chemical fielddevelopment methods that were used indifficult geological conditions to achievefuller reserve recovery yielded additionaloil production of 119.4 th. tons and158.1 th. tons respectively. 656 newwells were launched in 2009, 172 HFwere created (without HF at the newwells), 45 wells were sidetracked and 47deepened into lower formations.The key factor for innovationaldevelopment of any industry is anability to create and use new technicalsolutions, technologies and techniques.Application of the latest technologiesbecomes the most important criteria fora company’s competitive abilities:AAIn 2009 Gazprom Neft continued toapply latest technologies in drillingand casingAAA dimensional visualization centeropened up at the Gazprom NeftResearch and Technology Centerin St.-Petersburg. It uses the latesttechnologies in the area of geologicaland hydrodynamic simulation. Thegoal of the new division is to designtrajectories for new wells, createa 3D seismological simulation inorder to enhance field development.The visualization center will improvethe joint efforts of the researchers,geoscientists, geologists, and drillingspecialists working at the center. It willalso help to analyze the structure andcharacteristics of the fields in moredetail.AAGazprom Neft-Khantos implementeda new technology “dual completionarrangement” (DC), which providessolutions to several problems: controlover field development, better qualityof reserve recovery, shortens thewells’ down time: now specialists getdata on the flow from each reservoironline in real time.AAUpon Gazprom Neft’s request,specialists from the Oil and GasResearch Center in Sarov are workingon developing the Iskender Programand Industrial Complex, which isan instrument for hydrocarbonsBy the end of 2007 the Company’sanalytical department was turnedinto Gazprom Neft-NTC LLC, anindependent corporate scienceproductioncenter in the area ofgeological exploration, design,control and oil and gas production. InSeptember 2009, Gazprom Neft-NTCLLC adopted a Concept for protectingthe Company’s intellectual property andGeoteLOGICAL AND ENGINEERING Operations in 2007–20092007 2008 2009Number of wells 1 003 1 194 1 088Extra production, th. t 4 919,3 4 649,3 4 705,8Source: Company Data119