KEYFACT Energy
The Bazhenov Technology Centre (a Gazprom Neft subsidiary) has cut the costs of producing oil at the Bazhenov Formation, from RUB30,000 to RUB16,000 per tonne. A viable production cost, of RUB8,500 per tonne, is expected to be reached as soon as 2021.
Gazprom Neft’s 2019 year-end results show a 2.5-fold year-on-year increase in oil production at non-traditional reserves. Improvements in the technologies used in developing the Bazhenov Formation have allowed the company to almost halve the costs of producing Bazhenov oil, * from RUB30,000 per tonne at the start of the project in 2017, to RUB16,000 per tonne in 2019 — this figure itself reflecting a 20-percent reduction on 2018 levels.