Anglo-Russian TNK-BP and oilfield services giant Schlumberger have signed a contract to jointly implement a pilot project to develop hard-to-recover hydrocarbon reserves in the Severo-Khokhryakovskoe field in the West Siberia, TNK-BP said Thursday.
The companies agreed to jointly prepare and implement a comprehensive production program, which will be based on the understanding of the project's cost efficiency at each of the development stages with a target to increase the oil recovery factor, TNK-BP said.
TNK-BP, Russia's third-biggest oil company, expects to launch the pilot project at the Severo-Khokhryakovskoe, or North Khokhryakovskoe field, by the end of the year, a source in the company told Platts.
The first stage envisages drilling of eight wells, including six horizontal wells with multistage hydraulic fracturing, the source said.
TNK-BP expects the first stage to be completed by the end of 2013.
If the first stage brings positive results, the program will be expanded twofold, the source said.
Under the terms of the contract, Schlumberger will coordinate all operations and provide the entire range of oilfield services within the framework of the project, apart from directional drilling, TNK-BP said in a statement.
The contract includes a provision on the correlation between the contractor's remuneration and production efficiency, it said.
"The new format of cooperation serves to enhance the field production efficiency by increasing production per well and formulating the optimal asset development scenario involving the technology of multistage fracturing in horizontal wells," it said.
"Developing hard-to-recover reserves is cost efficient only subject to use of advanced technologies and an integrated approach to the development of the entire asset," TNK-BP Executive Vice President, Strategy and New Business Development, Mikhail Slobodin, said in a statement.
"Our pilot project with Schlumberger in the Severo-Khokhryakovskoe field is a new interaction system for the company under which an oilfield services contractor not only provides the entire range of high-tech services and unique solutions controlling the whole suite of operations but is also economically engaged in getting the best result," he said.
The Severo-Khokhryakovskoe field is characterized by tight formations with a high heterogeneity of reservoir properties, with proven reserves estimated at 55 million mt (1.1 million barrels) of crude under Russian classification.
On Monday Russian state-controlled Rosneft agreed to buy TNK-BP, for some $54 billion worth of deals set to cement its role as the country's biggest oil producer.
Rosneft and BP announced an agreement in principle for the Russian company to buy BP's 50% stake in TNK-BP in exchange for $17.1 billion in cash and a 12.84% stake in Rosneft from shares currently held in treasury.
Separately, Rosneft said it has agreed the terms of a deal to acquire the other half of TNK-BP from its Russian shareholders -- Alfa, Access, Renova (AAR group)-- for $28 billion.
