The Yuzhno-Khylchuyu will be a major breakthrough for the oil industry in the Nenets Autonomous Okrug. The field will produce an annual 7,5 million tons of oil, and thus increase regional oil production with 50 percent.
Operator Naryanmarneftegaz, a subsidiary of Lukoil and ConocoPhillips, is investing 90 billion USD (2,4 billion EUR) in the project, which is unfolding over a 90 hectare area in the middle of the Nenets tundra.
25 wells have been drilled in the area. In addition come several industrial facilities, among them a 125 megawatt gas turbine power station, which will fuel the installations with the necessary energy.
The Yuzhno-Khylchuyu is linked with pipelines to the port of Varandey on the coast of the Pechora Sea, a port with a 12 million ton capacity.
A small town has developed on the Yuzhno-Khylchuyu production site. For several years, about 3000 workers have been engaged in construction. As production gets online, the number of men will be significantly cut. Still, several hundred people will remain on the site to operate the installations.
The Yuzhno-Khylchuyu has been placed firmly on the Russian map. The field’s production life is 30 years.
Map: The Yuzhno-Khylchuyu field and pipelines to the Varandey port terminal
