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A joint venture between Shell and Russia’s Gazprom Neft has begun drilling in a Siberian shale formation that is believed to hold one of the world’s largest shale oil deposits.

The joint venture, Salym Petroleum Development (SPD), is eying the Bazhenov shale as a play potentially similar to the highly prolific Bakken shale in the US.

[...]

Russia looks to shale. Russia is starting to look at its shale potential, and large reserves are thought to be located in the Bazhenov shale in Western Siberia. In fact, it is thought to be the largest shale formation in the world. Up until now, Russia has relied on conventional sources, but Russian companies are starting to move into shale. “The Bazhenov is a huge prize,” says Alexei Vashkevich, Gazprom Neft’s exploration director, according to the WSJ. Output from Russia’s shale is not expected before the mid-2020s, but it could be crucial to offsetting declines from mature oil fields.

coffeeguyzz wrote:That article from Gazprom had some pretty interesting info.
IP of almost 1,400 bo from a 20 stage frac on an initial well bodes very well for future development.
Using closable sleeves was particularly noteworthy as only Crescent Point has utilized them, AFIK.
About 2 years back, Bazenhov had at least 4 horizontal wells being drilled with no multistage fracturing planned at that time.
The primary purpose was to test actual conditions regarding operational challenges and obtaining formation data along the way.

There should be no doubt that, despite a great deal of heterogeneity - especially faulting - throughout the vastness of the Bazenhov, it WILL be successfully developed, probably sooner rather than later.

On a somewhat related note, the $27 billion that the Russians invested in developing LNG infrastructure on Yamal - an absolutely stunning achievement, all the more so as sanctions hampered the project - is GREATLY threatened by future US LNG.
This, like the Australian Gladstone projects, cost WAY more than proposed US LNG operations.

Numbers ... Yamal - $27 billion, 16 million tonnes per year (mpta)
Gladstone (all 3 companies) - $60 billion, 26 mpta
Telurian's project - $16 billion, 27 mpta in incremental (modular) stages
Newest proposal by Delfin and Golar - $4/5 billion, 13 mpta using FLNGs

The rapid development in technology in the hydrocarbon world is not only at a dizzying pace, it is accelerating.

The doomers and Ra/Zephyr worshipers aside, serious students of these matters would be well advised that - 5 years out - we will be in a different world.

coffeeguyzz wrote:Sub
Your question just prompted me to go to the absolute best - overall - source of data on these matters, the EIA site.
Just downloaded and speed read the 74 page pdf on the Bazenhov that, released in 2015, used research from earlier years.
Somewhat dated, in other words.

Still, they pegged 75 billion barrel TRR.
TOC content in the center area is 10% which is exceptionally high.
I have no idea regarding future recoveries, but the clay content might prove problematic.
However, there are numerous alternatives to water based frac'ing (supercritical gas being only one), so the Russians may very well surprise to the upside in future development.

There is NO doubt that there is a vast resource there.

I remember reading years ago that the USSR pioneered using artillery shell sized atomic bombs to frack gas formations in Siberia. Something about the massive heat shock crystallizing and shattering the clay? I dunno, but it seems like clay has answers even if it is a complicating factor.

KHANTY-MANSIISK, Russia, March 1 (Reuters) - Russia’s Gazprom Neft expects to start commercial production from Bazhenov formation, the world’s largest shale oil resource, in 2025 provided it can reduce lifting costs from current estimates for the project, company officials said.

The International Energy Agency describes Bazhenov as the world’s largest source rock, a bed of ancient organic matter dating back to the Jurassic period which has given rise to most of the crude oil pumped from the fields of West Siberia.

Production of such oil is more costly than the extraction of the oil from conventional reservoirs.

“We understand that this is a very serious technological challenge,” Alexei Vashkevich, head of geological exploration and resource base development at Gazprom Neft, told reporters.

For the project to be viable, lifting costs needed to fall to 8,500 roubles ($151) per tonne, Vashkevich said, without disclosing current estimates.

Kirill Strizhnev, who oversees the Bazhenov project for Gazprom Neft, said commercial production might start in 2025.

Gazprom Neft, which estimates that it can potentially extract 400 million tonnes of oil equivalent (8 million barrels per day) from Bazhenov, currently produces 150 tonnes per day from the formation.

The company initially planned to tap Bazhenov jointly with Shell but the international major withdrew from the project in 2014 following international sanctions against Russia for its role in Ukrainian crisis.

$1 = 56.2600 roubles Reporting by Oksana Kobzeva Writing by Vladimir Soldatkin Editing by Edmund Blair

Tanada wrote:

Production of such oil is more costly than the extraction of the oil from conventional reservoirs.

“We understand that this is a very serious technological challenge,” Alexei Vashkevich, head of geological exploration and resource base development at Gazprom Neft, told reporters.

For the project to be viable, lifting costs needed to fall to 8,500 roubles ($151) per tonne, Vashkevich said, without disclosing current estimates.

...

$1 = 56.2600 roubles Reporting by Oksana Kobzeva Writing by Vladimir Soldatkin Editing by Edmund Blair

Reuters

We understand that this is a very serious technological challenge

StarvingLion wrote:

We understand that this is a very serious technological challenge

Well, then why haven't they consulted the Failed Physicists of Wall Street...OR

The "Smartest Guys in the Room" at Google.

Answer: They're frauds. You know, Internet Scams Rulz!

coffeeguyzz wrote:The Russians have a demonstrated history of unparalleled innovation coupled with extreme determination when circumstances warrant.

Should they continue to overcome operational and technical hurdles in developing the Baz, that will unleash an enormous amount of oil onto the global stage.
Furthermore, should this anticipated evolution spread, other areas, notably - but not exclusively EasternEurope - will adopt and implement these extractive procedures.

StarvingLion wrote:

coffeeguyzz wrote:The Russians have a demonstrated history of unparalleled innovation coupled with extreme determination when circumstances warrant.

Should they continue to overcome operational and technical hurdles in developing the Baz, that will unleash an enormous amount of oil onto the global stage.
Furthermore, should this anticipated evolution spread, other areas, notably - but not exclusively EasternEurope - will adopt and implement these extractive procedures.

More mindless hype from coffeegrinds...

Here is the truth: Not self-financing...and probably never will be. The big manufacturing based coal burners will own this because oil states like Russia, Saudi and Scamerica cannot finance it.

"To make Bazhenov work, Gazprom Neft is also banking on tax concessions and partial financing from the government, which have yet to be forthcoming—and may not appear in the near future either."