An exploration subsidiary of Russian state-controlled gas producer Gazprom is optimistic on the potential of its 11 offshore shallow and deep-water blocks in the Kara Sea and the Barents Sea, writes Vladimir Afanasiev.

Gazpromgeologorazvedka has plans to spud at least two exploration wells on its Arctic offshore acreage each year, with a total of 10 by the end of 2023, according to recently-appointed executive director Vselovod Cherepanov.

Following two discoveries in 2018 – Nyarmeyskoye and Dinkova in the Kara Sea - Cherepanov expects new drilling to confirm estimated in-place hydrocarbon resources of about 12 billion barrels of oil equivalent, most of which should be natural gas.

Gazprom’s blocks are located to the north-west of the Yamal Peninsula and are believed to lie in the same geological formations as the company’s core asset in the area, the Bovanenkovskoye gas field, as well as the nearby Kharasavey and Kruzenshternskoye gas fields.

Water depths at the blocks are understood to permit Gazpromgeologorazvedka to continue using jack-up rigs for the planned job. This would circumvent the need for semi-submersibles, the chartering of which could be restricted due to ongoing US and European sanctions against Russia.

Concurrent with offshore exploration, Gazpromgeologorazvedka is pressing ahead with a plan to continue exploration of three large onshore blocks in the northeastern part of the Yamal Peninsula, according to its tender documentation.

For next year, the company has pencilled in the start of drilling of exploration wells 163 and 165 at the Tasiysky block, wells 126 and 127 on the West Tambey block and well 211 at the East Tambey block, according to its recent tender disclosure notice.

Last year, Gazprom updated combined estimated recoverable reserves of these three blocks to almost 8 trillion cubic metres of gas and said that, geologically, they belong to a single gas formation.

The gas giant is understood to have no immediate plans to start working on development schemes for these assets because the three blocks are located in a remote area too far from existing trunk pipeline infrastructure.

According to industry analysts in Moscow, the most economical way of tapping their reserves is to build a liquefied natural gas export facility.

However, Gazprom has said earlier that the three Tambey blocks should be eventually linked to the Russian gas trunk pipeline network.

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Gazprom upbeat in Arctic