Gazprom Neft to develop Russia’s first ever integrated fracking-equipment system

Gazprom Neft to develop Russia’s first ever integrated fracking-equipment system

Gazprom Neft, together with its partners, is to develop Russia’s first ever integrated fracking-equipment system (the key enhanced oil recovery (EOR) technique used in developing hard-to-recover oil reserves), under a Cooperation Agreement signed at the 2021 St Petersburg International Economic Forum by Vadim Yakovlev (Deputy CEO for Upstream, Gazprom Neft), Yuri Solomonov (General Director and Chief Designer, Moscow Institute of Thermal Technology), and Andrey Efremov (General Director, ZAO SP MeKaMineft).*

This cutting-edge, Russian-manufactured fracking-equipment fleet will include special vehicles for transporting the system, reagent well-injection units, mobile data-collection and analysis monitoring and control stations, field laboratories, and other equipment. Serial production is planned once the system has been fully tested.

The system will be produced by the Moscow Institute of Thermal Technology, with field testing by ZAO SP MeKaMineft at Gazprom Neft’s fields in the Khanty-Mansi Autonomous Okrug-Yugra.

“Bringing new hard-to-recover reserves into development is a strategic objective not just for Gazprom Neft, but for Russia’s entire oil industry. This is mainly being addressed through the use of cutting-edge EOR technologies — predominantly hydraulic fracturing. Creating the first full-scale domestic fracking-equipment system will diversify both the service-company and the components markets, increasing competition and improving the quality and efficiency of services provided. This is a project of national — federal — significance, the implementation of which will not only enhance Russian companies’ global market positioning, but also give additional impetus to developing related industries.” – Deputy Chairman of the Management Board, Gazprom Neft Vadim Yakovlev.

“Developing and establishing a fracking fleet is a complex scientific, technological and production-oriented task. Addressing this is the logical next step in terms of MIT’s potential capabilities and appropriate experience. Creating such a fleet is a matter of direct relevance for Russian companies not just in terms of diversifying their activities, but also in terms of import substitution.” – General Director and Chief Designer, Moscow Institute of Thermal Technology Yuri Solomonov.

“Increasing the role of domestically manufactured products is not just a process of developing Russian technologies and production facilities, but also of localising production technologies within the Russian Federation, successfully testing these, and subsequently rolling them out. As part of import substitution policy and reducing technological dependence on foreign manufacturers in the oil and gas industry, and also in order to expand domestic oil and gas machinery production, ZAO SP MeKaMineft is demonstrating how scope for producing specific fracking and well-finishing equipment is being developed — not just within the Russian Federation, but also for promotion on the international market. Domestic products are not only capable of replacing imported alternatives, but can also compete with them. ZAO SP MeKaMineft, having 30 years’ experience in the oil and gas industry, stands ready to offer an effective technological—production partnership in field-testing high-tech fracking equipment to replace foreign alternatives.” – General Director, ZAO SP MeKaMineft Andrey Efremov.

Reference

* Hydraulic fracturing (fracking) is one of the main technologies in enhanced oil recovery (EOR) today. It is based on creating a fracture network in oil-bearing strata by means of high-speed, high-pressure fluid injection into a well. Oil flows into the well through the fissures created, which are kept open using a substance known as a “proppant”.

Gazprom Neft is a vertically integrated oil company primarily engaged in oil and gas exploration and production, refining, and the production and sale of petroleum products. In terms of production and refining volumes it stands among the top three largest companies in Russia. Gazprom Neft’s corporate structure encompasses more than 70 exploration and production, refining, and retailing enterprises throughout Russia, the CIS and worldwide. The company operates across 110 countries, worldwide. Gazprom Neft’s filling station network currently totals more than 2,000 outlets throughout Russia, the CIS and Europe. Gazprom Neft is one of the Russian oil industry’s leading companies in terms of efficiency. Company revenues in 2020 were ₽2 trillion, adjusted EBITDA ₽485 billion, and net profit ₽117.7 billion. Gazprom Neft’s largest shareholder is Gazprom PJSC, which holds a 95.68 % interest. The company’s remaining shares are floated on the world’s leading international stock markets.

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