Total started first phase Arctic Kharyaga field

French Total says it had started first phase work on the Kharyaga field in one of Russia's main oil producing regions inside the Arctic Circle. The programme, which will begin in the fall, includes the drilling and production start-up of two deviated wells and the construction of all the related institutions in the field located in the Nenets Autonomous Territory which lies in the Timan Pechora basin, 60 km North of the Arctic Circle.
Output during the first phase is expected to be around 10,000 bpd during the time required to set up additional transportation capacity between Kharyaga and Ussinsk. This capacity will allow start-up of the second phase which will raise production to nearly 30,000 bpd followed by a third phase increase to 70,000 bpd.
Development is being carried out under a 33-year production sharing contract signed with the Russian Federation in December 1995. Approval by local authorities is awaited to confirm the acquisition by Norwegian oil company Norsk Hydro of a 45 % interest in the project with Total remaining the operator with a 55 % stake.