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Russian firm starts Arctic field's first oil output

22nd August 2012

Russian energy giant invests in Arctic resources to balance production output as the oil fields of Western Siberia decline

Gazprom Neft's net profit for the first half of 2012 increased 0.4 per cent on last year to 78.7 billion Russian rubles (USD 2.47 billion), on the back of increased hydrocarbon production and higher oil-refining volumes

Gazprom’s oil export arm has begun first production in new Arctic field, one of the greenfield projects intended to help maintain Russia’s production as older fields decline.

Gazprom Neft plans to drill three new production wells and re-activate another before the end of 2012. Plans for hydraulic fracturing in several wells are also in the pipeline.

Novoportovskoye, north of Gazprom's main gas producing fields, is due to start commercial production in 2014 and hit its peak of 250,000 barrels per day in 2020.

Russian companies are increasing use of unconventional technologies to exploit oil out of the declining fields of Western Siberia as well as attempting to maximise output at new fields.

The new output should help Gazprom sustain production, which has levelled out at just over 10.3 million barrels per day this year.

Gazprom Neft earlier this month said net profit for the first half increased 0.4 per cent on last year to 78.7 billion Russian rubles (USD 2.47 billion), on the back of increased hydrocarbon production and higher oil-refining volumes.

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