Russia's Gazprom Neft is hoping its two latest acquisitions on the Gydan Peninsula will become its next major oil and gas developments in the Yamal-Nenets region following the successful launch of two greenfield developments in the harsh Arctic environment, writes Vladimir Afanasiev.

In November 2018, the state-controlled oil producer agreed to pay almost 478 million rubles ($7.4 million) for an exploration and development licence for the onshore Leskinsky block at an auction, beating competing bids from gas producer Novatek and petrochemical company Novokhim.

The 3650 square-kilometre block stretches along the shore of Yenisey Bay from the north to the north-east of the Gydan Peninsula, in an area that lacks any permanent connections to support transportation infrastructure in the neighbouring Yamal-Nenets and Krasnoyarsk regions.

Following the Leskinsky acquisition, the company in January bought a similar-term licence for the Pukhutsayakhsky block for a significantly smaller amount of 20 million rubles.

The Pukhutsayakhsky block covers more than 1650 square kilometres along the south-west border of the Leskinsky acreage.

Gazprom Neft has already revealed plans to spud two exploration wells on Leskinsky in 2020 and 2021.

According to a company tender disclosure notice, it wants a single contractor to carry out drilling and testing of the two wells in succession, with overall logistical support from the oil producer.

The notice said the first well is initially planned to be located about three kilometres inland from the Yenisey Bay shore.

The location, not far from the shoreline, is expected to alleviate the mobilisation by sea of a drilling rig and a separate mobile rig for the flow test.

Gazprom Neft expects the mobilisation of the rig, supporting machinery, equipment and fuel to ports in the Yamal-Nenets region, to begin this year to enable drilling to start in May 2020.

Following testing of the first well, the drilling rig will move to a second location where drilling is scheduled to begin in March 2021, the company said.

According to Gazprom Neft, both wells are to be drilled to a depth of 4500 metres, penetrating at least four prospective oil layers located at depths between 1450 and 3200 metres.

According to official Russian preliminary estimates, the Leskinsky block may hold possible resources of just 73 million barrels of oil and 115 billion cubic metres of gas.

However, after gaining the acreage, Gazprom Neft declared that its geologists believe the block's hydrocarbon reserves may eventually exceed current estimates “many times” over.

Meanwhile, authorities have estimated Pukhutsayakhsky's in-place possible resources at just 9 million barrels of oil and about 20 Bcm of gas.

Gazprom Neft has yet to reveal when it is planning exploration activities at this block.

According to industry analysts, the remoteness of new onshore acreage is no longer a deterrent for Gazprom Neft after bringing online its remote Novoport field on the neighbouring Yamal Peninsula in 2015. Novoport required long-term planning for supplies and equipment that could be brought to the site only during winter via temporary roads.

Gazprom Neft built a unique ice-resistant Arctic marine loading terminal to enable year-round oil exports from the field and has also commissioned a fleet of special ice-strengthened oil tankers and dedicated icebreakers to carry oil from Yamal to a transshipment vessel near the port of Murmansk during the ice season.

Another project that expanded Gazprom Neft’s experience in developing fields in remote Arctic locations is the Messoyakha project.

The project consists of two fields, East and West Messoyakha, located south of the Gydan Peninsula.

Oil production at East Messoyakha started in 2016.

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Gazprom Neft has high hopes for Leskinsky and Pukhutsayakhsky