AMBITIOUS EXPLORATION, PIPELINE PROJECT TAP EASTERN C.I.S.

March 23, 1992
W.C. Krueger Jebco Seismic Ltd. London Project Vostok, a vastly ambitious project, will by the end of the century move gas from Eastern Siberia and the Sakhalin area through North and South Korea to Japan. This system will open one of the last available frontiers on earth for exploitation of many diverse natural resources. With the start of such a project, western oil companies can see a return on their investment possibly equal to investment in other more developed areas.

W.C. KruegerJebco Seismic Ltd. London

Project Vostok, a vastly ambitious project, will by the end of the century move gas from Eastern Siberia and the Sakhalin area through North and South Korea to Japan.

This system will open one of the last available frontiers on earth for exploitation of many diverse natural resources.

With the start of such a project, western oil companies can see a return on their investment possibly equal to investment in other more developed areas.

Eastern Siberia and the Far East of the former Soviet Union possess huge hydrocarbon and mineral reserves. Their areal extent is 3.2 million sq km, equal to more than 40% of the U.S. land area.

The conception of development of the Yakutsk, Irkutsk, and Sakhalin gas fields and mineral and timber resources of the Far East exemplifies a project that encompasses many different organizations and boundaries.

ORGANIZATION, LOCATION

Several organizations are responsible for preparation and implementation of the Vostok project (Table 1).

Hydrocarbon ministries and various subordinated institutions are represented from the Ministry of Geology, Oil & Gas Industry, and Gazprom.

The Academy of Science is represented by the Far East Branch and the Institutes of Energetics as well as the Technological Academy of Russia.

If the project is carried to completion, this group of organizations will be able to exhibit the type of cooperation needed.

The Vostok program consists of construction of a gas pipeline system from Yakutsk and Sakhalin through the Koreas to offshore Japan, a distance of more than 5,500 km (Fig. 1).

Gas, condensate, and oil are known to exist in the area.

Other known deposits in the region are iron ore, potassium, coal, titanium, copper, tantalum, niobium, lead, zinc, tin, tungsten, molybdenum, asbestos, fluoride, nepheline, graphite, gold, silver, and diamonds.

Due to the enormity of the area and innumerable resources, companies that form groups of differing interests or horizontally integrated natural resource companies are well positioned to take advantage of multiple types of exploration possibilities.

HYDROCARBON DEPOSITS

The known deposits of hydrocarbons occur in the Yakutsk Autonomous Region and Irkutsk oblast, Eastern Siberia, and the Sakhalin region (Table 2).

In Sakhalin deposits occur on and offshore.

East Siberia is divided into two areas, Yakutsk and Irkutsk. Yakutsk is further divided into two segments, Vilyui and Nepa Botuba.

Total A + B - C1 gas reserves are 1,600 billion cu m. Oil and condensate reserves are 530 million tons with possible total reserves of 2,250 billion cu m and 775 million tons (C2 reserves added). These figures are based on discoveries and projections to Jan. 1, 1991.

Gas content exhibits methane and ethane constituents of about 97% with low percentages above C5 components. In the Nepa-Botuba areas of Yakutsk and Irkutsk helium is a very minor percentage (

Predicted reserve increases are based from 1991 (Fig. 2). Gas production is prognosed to begin in 1995.

WESTERN ACTIVITIES

Sakhalin Island operations offshore have been stalled for many years.

Recently ministries in Sakhalin have chosen to operate independently of the Russian Federation. Companies have bid on operations there, and the bids are the subject of extended review (OGJ, Feb. 24, p. 38).

As of late 1991, OMV of Austria has agreed to a joint venture in Yakutsk, Eastern Siberia, with the Ministry of Geology, Lenaneftegazgeologiya. Two blocks are involved for a total of about 28,000 sq km (OGJ, July 8, 1991, p. 21).

The blocks contain estimated reserves of 290-400 billion cu m. Data packages from the Yakutsk and Irkutsk regions in the East Siberia basin have been available through Jebco Seismic. These range from data regional in scope to specific field deposits.

CONCLUSION

The pipeline construction timetable for Project Vostok is probably premature by at least 5 years given the difficulty in obtaining quality pipe and skilled workers.

Yet this type of project is needed to move the Russian Republic toward a more positive role in stabilizing world hydrocarbon operations. Technology and hard currency are still the ubiquitous needs.

With realistic lead time between exploration and production of 5-7 years, horizontally integrated oil companies and/or natural resource consortiums are positioned well for exploration plays within Eastern Siberia and Sakhalin Island.

ACKNOWLEDGMENTS

Ms. Lynda Robinson ably translated the original Vostok Project report. Mrs. M. Lindesay typed the manuscript. Claygate Services Ltd. drafted the figures. Jebco Seismic Ltd., London, granted permission to publish this article.

BIBLIOGRAPHY

Ministry of Geology U.S.S.R., Gazprom State Gas Committee, Ministry of Oil & Gas Industry U.S.S.R., Academy of Science U.S.S.R., The conception of development for Yakut and Sakhalin gas and mineral resources of Eastern Siberia and the Far East of the U.S.S.R. (Vostok Project), Moscow, 1991.

Clarke, J.W., Petroleum Geology of East Siberia, U.S. Geological Survey open file report 85-367, 1985.

Meyerhoff, A.A., Geology and Petroleum Fields in Proterozoic and Lower Cambrian Strata, Lena-Tunguska Petroleum Province, Eastern Siberia, U.S.S.R., AAPG Memoir 30, 1980, pp. 225-252.

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