The Yuzhno-Russkoye field is a Russia

Russia

Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...

n oil and gas field located in the Krasnoselkupsky District

Krasnoselkupsky District

Krasnoselkupsky District is an administrative and municipal district , one of the 7 in Yamalo-Nenets Autonomous Okrug, Russia....

, Yamal-Nenets Autonomous Okrug, Tyumen Oblast

Tyumen Oblast

Tyumen Oblast is a federal subject of Russia . Its administrative center is the city of Tyumen. The oblast has administrative jurisdiction over two autonomous okrugs—Khanty-Mansi Autonomous Okrug and Yamalo-Nenets Autonomous Okrug. Tyumen is the largest city, with over half a million inhabitants...

.

History

The Yuzhno-Russkoye field was discovered in 1969. Preparation for the development of the field started in 1997. American oil company Moncrief Oil International claims that in 1997, Gazprom's subsidiary Zapsibgazprom and Moncrief signed a contract according to which Moncrief acquired 40% of stake in the field, a claim that Gazprom does not recognize. According to the contract Severneftegazprom was established as operating company. In the following years control over Severneftegazprom was gained by Itera and later regained by Gazprom. In 2004, Gazprom started negotiations with BASF and E.ON over development the Yuzhno-Russkoye field. The inauguration ceremony launching work on the field was held on 18 December 2007.

Technical features

The gas field lies about one kilometer below the surface. The proven gas reserves of Yuzhno-Russkoye are 805.3 bcm (billion cubic meters) and estimated reserves are more than 1000 bcm of natural gas. The proven oil reserves are 5.7 million tons. The planned capacity of Yuzhno-Russkoye field is about 25 bcm of gas per year. Currently there are 26 gas wells in operation producing 15 million cubic meters of natural gas per day. It is designated to become the main natural gas supply for the Nord Stream pipeline.

Operating company

The licence for the Yuzhno-Russkoye field is owned by Severneftegazprom, the subsidiary of Russian gas company Gazprom

Gazprom

Open Joint Stock Company Gazprom is the largest extractor of natural gas in the world and the largest Russian company. Its headquarters are in Cheryomushki District, South-Western Administrative Okrug, Moscow...

. German energy company Wintershall

Wintershall

Wintershall AG is the largest crude oil and natural gas producer in Germany. The company is based in Kassel, Germany. Wintershall is a wholly owned subsidiary of BASF, based in Ludwigshafen. The name Wintershall is derived from the surname of the enterprise co-founder Carl Julius Winter and the...

, a subsidiary of BASF

BASF

BASF SE is the largest chemical company in the world and is headquartered in Germany. BASF originally stood for Badische Anilin- und Soda-Fabrik . Today, the four letters are a registered trademark and the company is listed on the Frankfurt Stock Exchange, London Stock Exchange, and Zurich Stock...

, owns 35% minus one share (25% of voting shares minus one share) in Severneftegazprom. According to agreements between Gazprom and German company E.ON

E.ON

E.ON AG, marketed with an interpunct as E•ON, is the holding company of the world's largest investor-owned energy service provider based in Düsseldorf, Germany. The name comes from the Greek word aeon which means eternity....

, E.ON Ruhrgas will get a 25% share of Severneftegazprom minus one share.

External links

• Results of meeting on Yuzhno-Russkoye field project, by Gazprom 11 June 2004
• E.ON and Gazprom Reach Understanding on Participation in Gas Field, by E.ON 13 July 2006
• Gazprom and E.ON to swap assets, by Andrew E. Kramer, The New York Times 13 July 2006
• Gazprom grows in Europe, by Andrew E. Kramer, The New York Times 28 April 2006