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Dolginskoye drilling is a cash-burner

Gazprom Neft is using the Romanian GSP Saturn rig for drilling at the the Dolginskoye field.

Gazprom Neft is spending $230 million on the drilling of one well in the Pechora Sea. The Dolginskoye oil will have better quality than oil from the nearby Prirazlomnoye, the company says.

Location

The oil subsidiary of Gazprom has started drilling at the Dolginskoye field in the Pechora Sea, the company informs in a press release. The operation, strongly criticised by environmentalists, takes place on 35-55 meters water depts and is conducted in cooperation with U.S. energy and engineering majors Schlumberger and Weatherford.

According to Aleksandr Korobkov, head of GazpromNeft-Sakhalin, the Dolginskoye operation is estimated to cost $230 million. The drilling is due to be completed in early September he says to newspaper Rossiiskaya Gazeta. The quality of oil at the Dolginskoye is expected to be better than at the neighboring Prirazlomnoye, the company director adds.

As previously reported, the Romanian-owned drilling rig GSP Saturn was boarded by Greenpeace activists before it in early June left the Dutch port of JImuiden and headed towards the Arctic field.

The Dolginskoye stretches like a cord through the Pechora Sea. Total resources are estimated 200 million tons. From before, three exploration wells have been drilled at the field and a total of 11,000 km of 2D and 1600 square km of 3D seismic mapping has been conducted.