North Uralian Petroleum Company (NUPCo)

The World-Class Opportunity in the Mature Basin

In the coming years, oil production in Russia will face a shortage of producing capacities caused by the long-lasting underfinancing of petroleum exploration.  As a result, we will see a surge of demand for new economical oil resources.  That is why we have developed a world-class oil exploration project in the Republic of Komi, one of the mature areas of oil production.  The resource potential of this project is the largest in the European part of Russia.  The project provides a unique opportunity to develop a new oil production hub with production capacity up to 70 Mbbls/d.  It is eligible for special tax terms and incentives, being included in the Arctic zone of Russia in July 2020 according to the Federal Law # 193.  We believe in the success of our business and wish to share it with a Partner. We are therefore offering 50% interest in the project in return for a staged investment in the project development including an exploration well and additional 3D seismic survey.

General info

North Uralian Petroleum Company (NUPCo) holds 100% interest in Kochmes 10 and Yuzhno-Povarnitskiy licences situated in the Inta region of the Republic of Komi. They cover an area of 550 km2 of the northeastern part of the Timan-Pechora Basin, one of well-established hydrocarbon producing areas of Russia. The acreage selection criteria include the presence of large conventional prospects and leads at drillable depths ranging from 1 to 4 km, the predominance of light sweet oil, the potential for high flow rates (from 1500 bopd), near-term pilot oil production potential, and robust economics. This region's hydrocarbon potential is proven by existing fields including the Nertseta field, the biggest oil discovery in Russia in 2016, which lies north of NUPCo's acreage.

Elevation map of northwestern Russia showing the distribution of oil and gas fields and location of NUPCo’s blocks (source: https://openmap.mineral.ru/).

 
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Operations

 
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NUPCo’s geophysical works, March 2019

Completed works

NUPCo's comprehensive work on the licence acreage has included the study of the vintage G&G data and acquisition of a new 3D seismic survey along with magnetotelluric, gravity and magnetic studies. Processing of the seismic data has been done with the use of state-of-the-art technologies, including the RTM migration conducted by CGG. The integrated interpretation of the geophysical data and vintage well logs has been instrumental in defining the area's prospectivity and accurately imaging optimal drilling sites. This allowed mapping of a large prospect, called Povarnitsa High, which was subsequently reviewed and approved by Kominedra (a local branch of Rosnedra State Agency). Several additional leads have been detected.

Prospect

 The Povarnitsa High features a regional 3-way dip closure juxtaposed against a squeezed salt wall formed by the Upper Ordovician evaporites. The areal footprint of this structure is 277 km2, its structural relief exceeds 1 km. It is the largest prospect in the highly prospective play fairway of the Uralian Foreland Basin. The structure involves stacked reservoir and seal pairs in the regionally productive Silurian-Permian deposits. Three deep wells drilled in the area in the 1980s based on a loose grid of low-fold seismic, 700-900m downdip from the crest of the prospect, show clear well log evidence for the presence of multiple hydrocarbon-saturated intervals. They range from the Lower Devonian to the Permian. One well followed light sweet oil (450 API) from the Upper Devonian carbonates, while other intervals were bypassed.

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A- Seismic profile across the Povarnitsa High, B- schematic geological section crossing the southern part of the Kosyu-Rogov Foredeep Basin showing known and expected oil and gas pools, C- top Lower Permian depth map of the Kosyu-Rogov Basin and the location of the geological section.

Resources

The officially approved recoverable oil recourse estimate of the identified prospect is 462 MMbbls. This estimate includes three of the most prospective intervals in the Upper Devonian-Lower Carboniferous section only. Several other prospective intervals of the structure are regarded as contingent resources. Up to 300m thick Upper Devonian reefs are mapped within the trap on 3D seismic data. They will likely provide production sweet spots. There are additional exploration opportunities related to 4-way closures mainly formed by the Lower Permian reefs and their drape layers at depths of about 2.0-2.5 km. The subsalt Ordovician deposits may host large gas accumulations.

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Combined view of seismic profile, wells, and a grid of the base Frasnian unconformity isochrones surface of the Povarnitsa High.

Petroleum systems

 Petroleum modelling shows that the Povarnitsa high features a principal migration focus for hydrocarbons expelled from the large oil kitchen situating in the adjacent vast foredeep basin. The presence of the light oil flow in the old well at the fringe of the prospect, geochemical studies, and oil deposits on the trend suggest that the area is dominantly oil-prone. The prolific source rocks of the Domanik Formation and Silurian-Lower Devonian shales are in the oil window. The outstanding generation potential of the foredeep oil kitchen is estimated capable of generating more than enough oil and gas to charge the stacked reservoirs of the Povarnitsa High prospect. The salt overlying the trap provides the sealing.

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Combined view of seismic profile, wells, projected geological map and a grid of the base Visean unconformity isochrones surface of the Povarnitsa High and adjacent areas.

Production capacity, logistics

 

The petroleum potential of the NUPCo licences provides an opportunity to develop a new oil production hub in the Timan-Pechora Basin in 4-5 years with a production capacity of about 70 Mbbls/d. The licences are situated between the cities of Inta and Usinsk. The latter is the major center of the Timan Pechora petroleum industry. Both of them have railroad stations and airports.  Material supply could be handled by winter roads or via the Usa river during summer navigation.  The closest producing oil field is the Sredne-Makarikha (Rosneft).  The nearest insertion point in the high-capacity oil pipeline operated by Transneft is located 120 km to the south-west.  The nearest compression station of the Bovanenkovo-Ukhta gas pipeline is 50 km to the south-east. There are no environmental issues restricting operations in the license areas.

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Media

NUPCo’s geophysical works, March 2019

Konstantin Sobornov: "Oil will be in demand at least until the middle of this century."

How to improve the efficiency of Russian exploration? Sobornov Konstantin Olegovich.

Papers

 

Investment proposal

We offer a partnership in a world-class onshore oil exploration project in NW Russia. Our acreage was selected with the use of in-depth knowledge.  To make our prospect drill-ready we worked with top service providers and employed state-of-the-art technologies of seismic and non-seismic data processing.  Integrated interpretation of vintage and new 3D data allowed the identification of a huge prospect, covering 277 km2 with a height of about 1km. It involves stacked regionally productive reservoirs which have clear log evidence of the hydrocarbon saturation in old wells drilled in the fringe of the prospect.  Officially approved recoverable oil recourse estimate of the identified prospect is 462 MMbbls, which makes it the largest in European Russia.  Geological data show the presence of a significant resource upside.  This provides a unique opportunity to develop a new oil production hub in the Timan-Pechora Basin in 4-5 years when the oil industry will face a shortage of new production capacities.  The project is eligible for special tax incentives, being included in the Arctic zone of Russia in July 2020.  This along with the material resource base provides robust economics even in low oil price scenarios.  We wish to engage with an experienced partner to accelerate the project and are therefore offering 50% interest in the project in return for a staged investment in the project development including an exploration well and additional 3D seismic.

Contacts