Yamal Oil & Gas Archive

Post Show Report

Yamal Oil and Gas 2013. Yamal Oil and Gas Field and Arctic Waters Development: Attracting Advanced Technologies and Investments

On May 23-24, Salekhard, the capital of the Yamal-Nenets Autonomous District, hosted the 2nd International Conference Yamal Oil and Gas 2013, the only international level platform that brings together in Yamal senior managers of Russian and international oil and gas companies, top ranking officials from the Yamal-Nenets Autonomous District and adjacent regions, best world’s manufacturers of equipment and technologies, and specialists from leading research institutes and associations to discuss and make strategic decisions on the implementation of mega projects, attraction of investment and integrated development of the oil and gas sector in the region.

The Organizing Committee traditionally includes officials from the Administration of the Yamal-Nenets Autonomous District and Vostock Capital.

Official sponsors of Yamal Oil and Gas 2013: Total, Baker Hughes, OJSC Russian Helicopters and Bluewater.

Partners: INSTOK, Project Delta, and Russian Gas Society.

Media partners: Rogtec, Thomson Reuters, Oil & Gas Journal, Oil & Capital, Neftegaz.ru, Sfera Neftegaz, Investcafe, The Oil & Gas Exposition magazine, Prime, Geoengineering, Expert-Urals, and Upstream.

The conference was ceremonially opened on May 23 by Igor Kholmanskikh, Presidential Plenipotentiary Envoy to the Urals Federal District who came to Salekhard for the occasion. He stressed that “it’s no coincidence that the forum is held in Salekhard: Yamal produces up to 90% of Russian gas. The volume of production here in 2012 was 527 billion cub. m.” He also said that the importance of issues dealing with the development of Russian northern regions was due to the fight for Arctic resources currently underway in the world. In addition, Igor Kholmanskikh referred to specialists’ data according to which 20% of the global hydrocarbon resources account specifically for the Arctic offshore areas.[1]

The opening of the conference was also attended by Governor of the Yamal-Nenets Autonomous District Dmitry Kobylkin, Governor of the Khanty-Mansi Autonomous District Natalya Komarova, Governor of the Tyumen Oblast Vladimir Yakushev, and Deputy to the State Duma, President of the Association of Indigenous Peoples of the Russian North, Siberia and Far East Grigory Ledkov. It was decided to recommend that the public authorities of RF constituent entities forming part of the Urals Federal District should carry out an integrated evaluation of oil service development in the constituent territories, and prepare their proposals on industry’s development. The results of the work to be done should be reported to Igor Kholmanskikh by 28 June 2013.

The conference was also attended by a delegation of the Nenets Autonomous District which included Deputy Head of the Nenets Autonomous Area Igor Kuznetsov, and Head of Department of Natural Resources and Environmental Protection of the Nenets Autonomous Area Vladimir Tsybin. The Nenets Autonomous District shared its experience in the implementation of oil and gas projects with the adjacent region. Vladimir Tsybin delivered a report, “Implementation of Core Oil and Gas Projects in the Nenets Autonomous District and Adjacent Offshore Areas: Challenges and Solutions.” According to Governor of the Nenets Autonomous District Igor Fyodorov, Yamal Oil and Gas 2013 provides a unique platform for developing international cooperation, sharing experience in the development of deposits under harsh climatic conditions, designing an environmental strategy and discussing the legal aspects of subsoil resources management.

“Integrated development of oil and gas fields is extremely important for High North regions,” said Igor Fyodorov. – “For a second year running, the Yamal Oil and Gas conference is shaping a platform for constructive dialogue between business executives, government officials and scientists, which will help to address the development challenges faced not only by the Yamal-Nenets Autonomous District but also by other oil producing regions in Russia including the Nenets Autonomous District.”

The Yamal Oil and Gas 2013 conference focused on the development strategy of the fuel and energy complex, boosting of the resource base, exploitation of the Russian continental shelf, and industrial and environmental safety. Experts provided an evaluation of the oil and gas sector both at the regional and federal levels, and various concepts for the development of the oil, gas, and gas processing sectors, and discussed the key components of project investment attractiveness for domestic and foreign investors. The conference participants and the media showed particular interest in the plenary session and a special session devoted to the implementation of the Yamal LNG project.

The plenary session focused on various aspects of the establishment of a modern, global scale oil and gas province in the Yamal-Nenets Autonomous District. The speakers at the session were Sergey Menshikov, CEO, OOO Gazprom Dobycha Nadym, Oleg Andreev, CEO, OOO Gazprom Dobycha Yamburg, Alexey Davydov, CEO, OOO Gazprom Geologorazvedka, Dmitry Monakov, First Deputy Project Director, OJSC Yamal LNG, Sergey Soloviyov, CEO, OOO Novatek-Yurkharovneftegaz, and also Alexander Zhagrin, Deputy CEO (Corporate Projects Planning and Development), OOO Gazpromneft-Razvitiye.

The first day encompassed four major themes related to regional development and was completed with a technical session devoted to Dutch best practices in the development of fields as well as their applicability to the Yamal projects. During the session the floor was given to the world’s leading manufacturers of equipment and technologies for developing Arctic onshore and offshore fields: Project Delta Group, Royal Haskoning DHV, Fugro Engineers B.V., Van Oord, IMARES Wageningen UR, and Bluewater Energy Services.

Then all the participants set out for dinner at the Gornoknyazevsk Ethnographic and Nature Complex where they were introduced to the culture and traditions of the local population.

The second day of the conference started with an exclusive session devoted to the implementation of the Yamal LNG mega project. The Yamal LNG project had never before been presented to any conference or forum by so many of its senior leaders. The list of presenters included Gleb Luxemburg, CEO of OJSC Yamal LNG, Dmitry Monakov, First Deputy Project Director, Alexey Pashinsky, Chief Geologist, Leonid Shwartz, Director of Airport Project, Sergey Shumovsky, Chief Project Specialist, and Artur Kranke, Head of Labour Safety Department.

According to a statement by Gleb Luxemburg, CEO of OJSC Yamal LNG, this year the company is planning to start prospecting and appraisal drilling in the Yamal fields sections owned by it. He was referring to the hydrocarbon deposits at 3-km deep Jurassic sediments. It followed from his report that at the end of last year the State Commission for Reserves confirmed that the proven reserves of the Yuzhno-Tombeyskoye field stood at 1.226 trillion cub. m of gas and 60 million tons of condensate.“ Moreover, the field reserves were confirmed not only based on the Russian classification but also by international experts. These data are very much alike,” Gleb Luxemburg remarked. He also informed a correspondent of Sever-Press news agency that once the construction of the LNG plant is completed, the Sea Port of Sabetta may be used as multi-product ports i.e. receive and dispatch vessels loaded not only with hydrocarbons but also with other most diverse products. “It is expected that in 2016 the new sea port will be handling a total of 5 million tons per year, and by 2018 – 16 million tons while the port’s potential capacity is estimated at 50 million tons per year,” he said. The RF Ministry of Transport is planning that as early as by 2020 the transshipment via the new Arctic port will reach 30 million tons per year because by then Sabetta is to turn not only into a specialized LNG port but one of the support points for the Northern Sea Route.[4]

During Day 2, detailed sessions were conducted concurrently on the development of Yamal’s transport infrastructure and environmental issues of regional development, and also a special session on state-of-the-art technologies ensuring environmental safety and efficient exploitation of Yamal.

During the conference wrap-up session, proposals and conclusions were prepared to reflect the Forum’s proceedings, and following last year’s model, Forum Memorandum was drawn up. It was also decided to prepare and send to the Office of the Presidential Plenipotentiary Envoy to the Urals Federal District proposals on providing incentives at the federal level for increased investment by oil and gas companies in the modernization of their production processes; encouraging oil and gas companies to introduce innovative hydrocarbon production technologies aiming at increased oil yield; expanding the powers to monitor and oversee hydrocarbon production including joint coordination of actions with the Federal Agency for Administering Subsoil Resources Fund. Plenipotentiary Igor Kholmanskikh is also waiting for amendments to the draft Law on Key Guidelines of the Tax Policy related to the cancellation of the companies’ obligation to maintain direct separate accounting for oil extracted from deposits containing reserves difficult to recover; and the preparation of an Integrated Programme for the Exploitation of Hydrocarbon Resources of the Urals Federal District and the Adjacent Shelf of the Central Arctic Region.

The Office of the Presidential Plenipotentiary Envoy to the Urals Federal District will summarize and evaluate the materials submitted by the executive authorities of Russian constituent entities and territorial departments of federal authorities. The finalized proposals on enhancing the performance of the fuel and energy complex of the Urals Federal District will be sent to the relevant federal ministries and departments by 10 July 2013. Follow-up control is to be effected by Assistant to Presidential Plenipotentiary Envoy to the Urals Federal District, Boris Kirillov.[5]

The final gala reception was given at the Yuribey Hotel with the support of FMC Technologies, Project Delta Group, Fugro, Royal Haskoning DHV, and Van Oord.
For further details please contact

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