Total has signed an agreement with Lukoil creating a joint venture (JV) to explore and develop the tight oil potential of the Bazhenov play in Western Siberia.
Total will hold 49% of the JV and Lukoil 51%. This agreement finalises the memorandum of understanding signed between the two companies in December 2013.
The JV will assess the technical feasibility of developing the tight oil potential of the Bazhenov formation initially on 4 licenses covering an area of 2700 km2 in Khanty-Mansi Autonomous District. Seismic acquisition will start in 2014 and exploration drilling will follow in 2015. Total will contribute its Lyaminskiy 3, Vostochno-Kovenskiy and Tashinskiy licences to the JV while Lukoil will add the Galyanovsky license.
Total CEO, Christophe de Margerie, commented: “Total’s entry into the Bazhenov play, one of the world’s largest shale oil formations, reinforces our position in non-conventional hydrocarbons where the Group has developed significant experience with its numerous projects.
“Our international expertise leveraged with Lukoil’s experience in the region provides a balanced partnership and an excellent basis from which to appraise the huge potential of this Western Siberian play.”
Adapted from press release by Katie Woodward
Read the article online at: https://www.oilfieldtechnology.com/exploration/23052014/total_lukoil_explore_western_siberia_oil_potential_180/