Rosneft Wins the Auction for Russia’s Erginskoye License Area

Rosneft, based on the results of the auction, obtained the right to develop Erginskoye license area of federal importance. Acquisition value amounted to 20.7 billion rubles, the Russian oil giant said in a press release on July 12.

Rosneft offered the best price at the auction having the maximal capabilities for the synergy and the most efficient scheme of the area’s development.

Erginskoye area located in the Khanty-Mansiysk Autonomous District, was the largest license area from unallocated fund of the Russian Federation with the reserves totaling 103 million tonnes under C1+C2 categories.

According to Rosneft, Erginskiy license area will become an integral part of one of the most prospective production clusters in the Russian oil and gas industry, the basis of which is RN-Yuganskneftegaz – the largest Rosneft’s production entity accounts for 26% of production in Khanty-Mansi Autonomous Area-Yugra and circa 12% of the total oil and gas production in Russia. In addition, starting from 2017, Rosneft has been implementing the Kondaneft project, under which Kondinsky, Zapadno-Erginsky, Chaprovsky and Novo-Endyrsky license areas in the Khanty-Mansiysk Autonomous District are being developed.

Rosnfet saud Erginskiy license area borders with Rosneft’s major fields – Priobskoye (RN-Yuganskneftegaz) and Zapadno-Erginskoye (Kondaneft) that have a developed infrastructure.

An integrated approach to the development of the Kondinskoye group of fields and the Erginskoye area will generate high synergy and accelerated development of the resource potential of the fields, considering the infrastructure already set up within the Kondaneft project, as well as RN-Yuganskneftegaz’ existing resources and the developed infrastructure.

Rosneft said the decision to acquire Erginskoye license area is in line with the strategy aimed at maximum efficiency in developing the resources of the main oil and gas region of Rosneft’s activity. The Company preliminarily prepared the area development plan that will allow implementation of unique synergetic capabilities at the territory of Khanty-Mansi Autonomous Area-Yugra.