Rustam Minnikhanov: “Hard-to-recover oil reserves is the future of Russian oil industry”

On September 3, at a plenary session of International research and practice conference “Hard-to-recover and non-conventional reserves of hydrocarbons” within the framework of Tatarstan oil, gas and petrochemicals forum, Tatarstan President Rustam Minnikhanov said that hard-to-recover and non-conventional reserves are potential reserves of Russian oil producing industry.

Russian Deputy Minister of Energy Kirill Molodtsov, Deputy Head of Federal Service for Environmental, Technological, and Nuclear Supervision Svetlana Radionova, Turkmenistan Deputy Prime Minister Baimyrat Khodzhamukhammedov, President of Russian Union of oil and gas industry workers Gennady Shmal took part in the plenary session.

Tatarstan President welcomed participants of the conference and wished them to find new approaches to solve problems in the industry.

“I think that the level of credibility reached by scientists, geologists, oil industry workers, opens new opportunities for implementation of joint business projects. The topic of the conference is very important for Russian and Tatarstan oil industry. For many decades oil and gas reserves have guaranteed economic and energy safety in our country,” Rustam Minnikhanov said.

It was noted that for the last six years oil production growth rates decreased to 1 per cent, and the quality of remaining reserves is getting worse. The share of hard-to-recover reserves makes 60 per cent, and their depletion degree – 25 per cent.

According to Rustam Minnikhanov, Tatarstan workers faced problems of development of fields with hard-to-recover reserves. Currently Tatneft and small oil companies are working in difficult geological conditions on the territory with 70-year history of commercial field development.

However, due to innovations and tax credits the production decline was stopped in 1993 at the level of 23.6 million tonnes per year, and today it makes 33 million tonnes per year.

“The future of Russian oil industry is hard-to-recover and non-conventional reserves,” Rustam Minnikhanov said.

The President noted that Tatarstan workers gained wide experience in working with hard-to-recover reserves and started exploring shale production.

Rustam Minnikhanov thanked guests and participants of the conference and wished success in their work.

Russian Deputy Minister of Energy Kirill Molodtsov, in his turn, said that results of work of all oil and gas companies point to production sustainability of 523 million tonnes per year. The reserves increment in Western Siberia and development of hard-to-recover reserves are primary goals of Russian oil industry now.

During the plenary session, Turkmenistan Deputy Prime Minister Baimyrat Khodzhamukhammedov made report on development of Turkmenistan oil and gas industry.

President of Russian Union of oil and gas industry workers Gennady Shmal told about prospects of oil and gas production in the country.