The Soviet Union reports the first well in giant Tengiz oil field near the northeast coast of the Caspian Sea in Kazakhstan is on production.
The Moscow newspaper Trud said oil is flowing from No. 8 well. It did not disclose the volume.
Trud said Tengiz production can rise to 700,000 b/d "in the very near future," but said nothing about progress on drilling and completion of other wells.
Trud disclosed that 2.5 billion rubles were spent in Tengiz field before the first oil was produced from No. 8 well. It quoted the head of the "expert equipment installation workers" of Canada's Lavalin firm as giving "high praise" to specialists or the "Tengizneftegaz" production association for completing the well.
"I never before saw such a technically coordinated job of putting a highly complex and unique well on production," a Lavalin representative told Trud. Trud noted that Tengiz was placed on production at a very opportune time--"when the strain on our nation's fuel/energy complex had reached its limit." If, as the newspaper claimed, Tengiz production can be hiked to 700,000 b/d "in the very near future," the field could be instrumental in halting the plunge in overall Soviet crude/condensate flow during the past 3 years.
The U.S.S.R.'s oil production fell from more than 12.5 million b/d in first half 1988 to about 10.65 million b/d early this spring. During the late 1980s, Soviet officials predicted Tengiz oil flow would reach 240,000 b/d by the end of 1990 and possibly peak at close to 1 million b/d.
Trud also said U.S. interests are prepared to invest "about $10 billion" in Tengiz development. It said a protocol has been signed regarding plans to include Tengiz field as part of the joint venture "SovChevroil" in Kazakhstan's Guryev Province.
Chevron Overseas Petroleum Inc. and the Soviet government are partners in SovChevroil.
With the movement toward autonomy by most of the U.S.S.R.'s 15 union republics, Kazakhstan is likely to obtain from Moscow an increasing role in SovChevroil operations and future joint ventures with foreign firms.
RESERVES, CHARACTERISTICS
"Commercial" reserves in Tengiz field were placed at 1 billion metric tons (7.3 billion bbl) in the Trud report. Potential Tengiz reserves in place were earlier estimated by some Soviet authorities at more than 25 billion bbl (OGJ, June 11, 1990, p. 18).
Based on incomplete data, other Soviet sources said the field is believed to contain as much as 35-40 billion bbl of oil and 46 tcf of gas in place. At 25 billion bbl of oil in place, recoverable reserves could be 10-11 billion bbl, considerably higher than the figure cited by Trud.
The Moscow daily conceded that the Tengiz complex in a barren desert area with an extremely harsh climate, is "a tough nut" and is still plagued by many problems.
"This is true with respect to the construction and operational phases of the (Tengiz) project," Trud said. "Cooperation with Chevron Overseas must provide a great deal of assistance here."
L. Churilov, first deputy minister of the U.S.S.R.'s Oil and Gas Ministry, was quoted by Trud as saying, "The world's best and most modern technology is being employed in Tengiz field. It provides safety not only for personnel but for the environment.
"Attention is given to the smallest leak. The system has been designed to immediately shut down a faulty well, pipeline, or installation."
Trud emphasized the very high reservoir pressure in Tengiz--as much as 900 atm (13,221 psi).
"Then there is the problem of the great depths at which the pay is found," the article said. One Tengiz well Went to 17,759 ft but did not reach the bottom of the Carboniferous reservoir. Last year, No. 54 well in the salt dome sector of Tengiz was in the planning stage and projected to 22,966 ft.
"Moreover," Trud declared, "we encountered extremely high temperatures in Tengiz. And the main thing is the large hydrogen sulfide content in the dissolved gas, which is dangerous for all living things."
Soviet reports place the hydrogen sulfide content of Tengiz gas at as much as 17.7%. Methane is as high as 70%, ethane up to 10.5%, propane as much as 7.5%, carbon dioxide as high as 2.2%, and nitrogen a maximum of 1.4%.
A recently published Soviet geological handbook says Tengiz oil is about 44 gravity, and the gas:oil ratio is 603 cu m/metric ton of crude. Sulfur content is up to 0.5% and paraffin 2.2%. Tengiz exploration began in 1978, and oil was found in 1979. The structure is reef massif.
Copyright 1991 Oil & Gas Journal. All Rights Reserved.