OREANDA-NEWS. On 19 May 2008 was announced, that a tender for the right to exploit the subsoil resources aimed at geological study, exploration and hydrocarbons extraction on "Central Khorovey Uplift (CKU) blocks №1, 2, 3 and 4", located in Nenets Autonomous Area, took place on 7th of May 2008 in St. Petersburg.

Six Russian companies bided for this tender but only two made it to the final round: JSC "Zarubezhneft" and JSC "NK" Rosneft". After the Tender Committee examined the technical economic offers produced by the two companies, JSC "Zarubezhneft" was almost unanimously declared the winner for all four blocks (upon voting for one of the blocks one of the Committee members abstained). The Tender Committee pointed out the JSC "Zarubezhneft"’s high level of elaboration of technical economic offers that were prepared on the basis of digital geological and hydrodynamic models. The integrated innovative approaches to field development using thermal-gas treatment and integrated oil rate enhancement technologies that were offered provide high level of hydrocarbons extraction upon minimal impact on the ecosystems of Far North, which is undoubtedly crucial for the region.

Besides that, JSC "Zarubezhneft" undertakes certain responsibility for the social economic development of the Nenets Autonomous Area.

In view of the results the Company received 13 oil fields of CKU with oil deposits in upper Frasnian and Famennian sediments of upper Devonian, which are deposited at depth of 3000 to 3400m: North Sekhoreiskoe, Visovoe, Verkhnekolvinskoe, West-Khosedayuskoe, Sikhoreyskoe, East-Sikhoreyskoe, North-Sikhoreyskoe, North-Oshkotynskoe, Syurkharatinskoe, Urernyrdskoe and East- Yanemdeyskoe, South-Syurkharatinskoe, Pyuseyskoe.

Exploration drilling and prospecting works program with be completed within fife years following the license obtainment.

Oil production will commence on the fourth year of project efficacy (in 2011) and will reach its maximum on the tenth year of its implementation – 6,44 million tons per annum. The production for all the blocks mentioned is planned for 57 years. The accumulated volume of production for this period will amount to 112,6 million tons of oil, and the technological level of oil extraction ratio will amount to 0,461.

From the very first year of development the utilization of 95% of accompanying gas is contemplated; it will be used for power and heat production on Hydro Thermal Electric Stations.

JSC "Zarubezhneft" guarantees the abeyance of all environmental standards upon development of the area – environmental protection activities are budgeted at the amount of 8,7 billion rubles. The ecological monitoring of environment state will be carried out from the moment of works commencement, complex activities for organization of safety at work are planned, subsoil protection, reduction of industrial impact on landscapes, avoidance of negative impact on environment as well as restoration of disturbed areas.

The assignment of the right to JSC "Zarubezhneft" to exploit the subsoil resources aimed at geological study, exploration and hydrocarbons extraction on "Central Khorovey Uplift (CKU) blocks №1, 2, 3 and 4" will allow the Company to implement the program of exercisng the national technologies and further improvement of oil extraction rate enhancement, which was defined by the Decree of the President of the Russian Federation № 137 dated February 3rd 2004.

This project will be carried out with participation of the Vietnamese National Corporation of Oil and Gas "Petrovietnam". A joint company is established for these purposes, in which JSC "Zarubezhneft" will hold 51% and "Petrovietnam" - 49%.

The experience obtained in project by JSC "Zarubezhneft" and "Petrovietnam" will be further used in development of hydrocarbon fields in third countries.