According to the official information,
potential oil and gas resources in the Republic of Dagestan
are big enough: condensate oil – 509,3 Mln MT (incl. onshore -
169,3 Mln MT); natural gas – 877,2 billion cubic meters (incl. onshore - 337,2 billion
In the first half of 2013 in Dagestan oil and gas extraction was decreased, as the
Industry and Energy Ministry of Dagestan reported.
"Compared to the last year oil
extraction was declined by 11,8% - down to 84,7 thousand tones, gas extraction-
by 2,8% - down to 155,3 Mln cubic meters. The main problem to that is a high
rate of depletion and water cut of the both operated and new wells, due to the
ignored geological exploration works” –
as the Ministry stated.
As of 1 January 2008 industrial resources
of Rosneft – Dagestan OJSC were 4,152 mln mt of the oil (condensate) and 2,179 billion cubic meters of the gas.
As of 1 January 2009 (under SPE-PRMS,
DeGolyer & MacNaughton classifications) resources of Rosneft - Dagestan
OJSC and Dagneftegas had the following structure: proved oil recourse - 8 mln
bbl (1,09 mln mt), probable resources - 13 mln bbl (1,77 mln mt), possible
resources - 9 mln bbl (1,23 mln mt.), totally 4,09 mln mt.
The indicators difference is determined by
the significant distinction between the Russian inventory valuation system and the SPE-PRMS / SEC standards.
Under the SPE-PRMS classification resources
are divided in the next categories - «proved», «probable» and «possible» depending
on the chances rate for its extraction. Proved resources have 90% of the chance
rate, the probable ones – 50%, and possible resources – 10%.
In 1940 in the USSR
volume of the oil extraction was 31,1 mln Mt (incl. in Azerbaijan - 22,2 mln mt, in the Russian Soviet Federated
- 7 mln mt).
In 1940 in Dagestan it was extracted 0,145
mln mt of the oil (0,47% of the total extraction in the USSR or 2% in the RSFSR).
The planned figures of the Dagestan trust
were 0,15 mln mt (Grozny
specialists planned 2,77 mln mt). In 1942 “Makhachkala” and “Tarnair” deposits were
discovered which increased the oil extraction. Within 1943 the oil extraction
in Dagestan rose in 3 times, and by 1945 the volume of the oil extraction got 0,29
mln mt (1,49% of the total oil extraction in the USSR or 5 % in the RSFSR).
By the end of WW II the oil extraction
were decreased either in Dagestan or in the whole country from 33 mln mt in
1941 down to 19,4 mln mt in 1945 (incl. 11,5 mln mt. extracted in Azerbaijan
and 5,7 mln mt – in the RSFSR). During WW II the oil was extracting in a
coyoting way that was destroying richest oil layers. The oil was extracted,
driven through pipeline to the oil refinery plants, where they took light
fractions - gasoline, and the leftovers were sent back into the layer from
which it had been extracted earlier. Afterwards the degassed and oxidized oil
made the further filed exploration impossible. In the beginning of WW II more
than 60% of Azerbaijan oil were extracted in the flush way, but by the end of
the war flushed gave less than 5% of the extraction, the rest was taken out
with pumps and in the gas-lift way.
Dagestan oil is notable for its top quality which is
determined by its low sulphur content (down to 0,1 %), high content (up to 90%)
of the low-boiling fractions (down to
350oC), which provides a possibility to get top quality gasoline,
kerosene and diesel through simple oil refining. In 1945 a part of Dagestan oil in the total oil volume extracted in the
RSFSR was 5%. This is a significant figure enough to take the Republic as an
oil-producing region. But due to the adding new deposits into operation in
Privolzhskiy and West Siberian regions, the importance of the Dagestan
oil got de emphasis.
The Dagestan oil extraction industry
reached its maximum performance (2,2 mln mt) in 1970, what was 0,62 % of the total oil extraction in the USSR or
0,77% -in the RSFSR). I.e., even on its
peak of the oil extraction Dagestan was not an
important player in this sphere.
Since that times the oil extraction in Dagestan is steadily getting down: in 1990 – 636,1 thousand
MT, in 2000 – 326,3 thousand MT, in 2008 – 220 thousand MT, in 2012 – less than
200 thousand MT.
register of the mineral reserves in Dagestan
contains 53 onshore raw hydrocarbon (RH) deposits, including oil and condensate
reserves – 14,8 mln mt, gas reserves - 112,3 billion cubic meters, which form
a mineral resources base (MRB).
Within last 20 years the MRB of the raw
hydrocarbons has not been developing. Implemented geological exploration did not
lead it to the significant reproduction or to the reclamation extension by
means of undiscovered potential resources.
It is known that the condensate oil and
gas extraction in Dagestan reached its peak of
extracting in 1970 ( 2,2 mln Mt of the
oil and 1,6 mln Cubic meters of the gas (see slide and diagram).
After that the extraction has been
decreasing until discovering oil- and gas- deposits in Tersko-Kumskiy region in
In 1978-1992 it stabilized and holds on
the level of 600-500 thousand mt of condensate
oil and 1 Mln cubic meters of gas
In 1993-2005 the volume of condensate oil
extraction declined down to 350-300 thousand mt and of gas extraction down to 800-600
Mln cubic meters.
In 2006-2008 extraction reduction tendency
remained (331-220 thousand mt of the condensate oil and 613-298 Mln cubic meters of the gas).
In 2009 the condensate oil- and the gas-
extraction were 195,5 thousand mt and 316,0 Mln cubic meters respectively.
Consequently, the oil- and gas- extraction
NEGATIVE TENDENCIES IN THE
OIL AND GAS INDUSTRIES
Negative tendencies in the oil- and gas
industries in Dagestan have kept going on
Raw hydrocarbons production has been
reduced due to the following causes:
1. Some large and capacious deposits were
exhausted until the 70s.
2. Newly running deposits were small and
3. Limitation in 1993 and further
cessation of the oil acceptance by Chechenian oil refinery plants caused oil
4. Absence of the mineral resources base
reproduction due to the small capacity, and lack of geological exploration.
5. Functional depreciation and
obsolescence of the equipment.
Reduction of the geological exploration
works was caused by:
1. Cancellation of the MRB reproduction
2. Underfinancing of geological
exploration, particularly drilling works at the expense of the license holders
and the federal budgeting; permanent
lack of means in the federal budget.
PROSPECTS OF THE STABILIZATION
OF THE OIL- AND GAS EXTRACTION.
There is enough potential to improve and
stabilize the situation in the oil- and gas- industries in the Republic. With
the appropriate financing and proper geological exploration works (GEW) at the
sights of the distributed mineral reserve fund, chances to stabilize condensate
oil exploration within capacity of 300 thousand mt and gas – 600 mln cubic
meters annually are obvious:
1. There are three oil- and gas bearing
onshore areas in Dagestan: Tersko-Kumskiy,
Predgorniy, and Tersko-Sulakhskiy.
2. In part of the Russian sector of the
water area of the Caspian Sea adjacent to Dagestan
east terminations of known geological and structural elements of a land,
perspective on oil and gas are traced.
3. The size of areas perspective on oil
and gas is more than 28K kм2 onshore and 9K kм2 of the
water are of the Caspian sea within 12 mile
4. In the strategy reserve oil- and gas-
content identified down to 4000-5600 м in
5. In the Republic more than 2700 wells of
various depths were drilled for oil- and gas exploration. In 2003-2005 their
conditions were inventoried and determined that most wells of the distributed mineral
reserves are in an unsatisfactory technical condition. It is necessary to
repair them systematically.
6. Initial summarized resources are
estimated at up to 1,5 mln mt of the reference fuel.
All of these aspects points to favorable
prospects of the condensate oil- and gas exploration stabilization.
GEOLOGICAL EXPLORATION WORKS
GEW programs aim to provide regulate all
types of works on Russian RMB reproduction and protection. They also define
scales and terms of the works implementation considering the country’s social
and economic development forecasts. In the course of its realization and to
carry on its clause 2.13 «Complex of the
coordinated measures directed on settlement of a political situation and
improvement of socio-political situation in the Republic
of Dagestan», at Dagestan
territory GEW on oil- and gas exploration are carried on systematically. The
below table indicates figures and sources of the works financing:
FINANCING OF THE GEW
ON THE OIL- AND GAS EXPLORATION (data as on 2011)
Equity and attracted capital
Incl. Gasprom-t-M LTD.
GEW implementation increases the oil- and gas- content awareness; promotes
extension of raw hydrocarbons usage and induces MRB development. All of these
factors favor significant improvements in the Dagestan
MAIN TASKS OF THE
AND EXPENTION OF THE
DEVELOPMENT OF THE OIL- AND GAS- RESOURCES
1. Increase in financing of the
exploration works which are carried out at the expenses both of license holders
and the federal budget for the reproduction of oil and gas reserves.
prospecting works and estimation of the hydrocarbon deposits:
Triassic and lower Cretaceous -Jurassic deposits of Flat Dagestan;
in upper and lower
Cretaceous -Jurassic deposits of Foothill Dagestan.
3. Carrying out
geological and search works for the purpose of preparation of potentially
oil-and-gas structures for the drilling exploration:
within the Russian sector
of a shelf of the Caspian Sea adjacent to Dagestan;
on Tersko-Sulaksky and
Foothill Dagestan oil-and-gas areas.
4. Carrying out
thematic and research works for the purpose of preparation of new raw
hydrocarbons bearing sites for licensing.
5. Drilling of
parametrical and search-estimated wells for further studying of a geological
structure of oil-and-gas areas, the complex geologic-geophysical solutions of
regional tasks and revaluation of expected resources of hydrocarbons on the
basis of new data, and also ensuring high efficiency of detailed geological and
6. Specification of a quantitative,
geological, and economic assessment of resources of oil, gas and gas condensate
taking into account the new geological results received within recent years,
and also the established obvious discrepancy with earlier approved resources in
7. Involvement in repeated development of
earlier developed fields by restoration of the liquidated wells. On subsoil
sites repeatedly involved in development, first of all, it is necessary to give
an assessment of reserves (their quality and quantity), and also to carry out a
new mapping of oil-and-gas deposits. For this purpose carrying out modern types
of investigation that will allow to increase productivity of prospecting works
as a whole is necessary.
8. Stabilization of optimum volumes of
condensate oil and gas production.
of a new oil-producing enterprise in the Republic of Dagestan
Aiming to increase oil-producing in
Dagestan, there is a necessity to set up a company (in the future, government-private
partnership), which will have two main divisions: one division will work on
oil-producing stimulation applying advanced technologies on the oil-bearing sits,
where oil extraction was ceased 30-40 years ago; the other division
will carry on geological exploration using the high-end exploration
technologies to search and further operate new sits.
As it is stated in the Preamble, on the
territory of the Republic there are many deposits which were operated in the
50-70s of last century, and afterwards were preserved due to the water
intrusions and wells rate decline down to 3-5 mt per 24h. Nowadays these
deposits are privately owned, but only few of them are in operation.
We have offered our electromagnetic
prospecting services to some license holders, but it turned out that they have
not been able to finance such works even to learn if there are hydrocarbons on
the their sites.
Therefore, the oil business situation in
Dagestan looks like following: there are oil resources potentially contained up
to some million mt per each; there are oil-bearing site owners, who don’t have
enough funds to set up the operation of their sites; there are exploration
services providers (like our company), who are ready to explore the sites and
arrange technological process of
License holders are ready to sell their
stakes in the companies (from 30% to 100%) at the adequate amounts (from 10 to
50 mln rubles); our company is ready to carry on all required prospecting works
of the sites (services cost varies from 1 to 3 mln rubles), and then under
results of prospecting works it will be possible to begin repairing the wells
(3-5 mln rubles), which in whole will enable to start oil extraction in the
volumes of 3 -20 mt/24h from each well.
When prospecting works and a few wells
repair are done, it will be necessary to initiate oil-producing
intensification. Advanced technologies enable to increase oil extraction from 3-20
mt up to 20-200 mt per 24h.
Here is a calculation of the efficiency of
the funds, which are invested in oil extraction without advanced
technologies appliance on the abandoned oil fields:
Costs for oil fields purchasing (10 wells) 10-50 mln rub
Costs for electromagnetic prospecting 1
Wells repairing costs (per each) 4-5
Total costs for 1 well (incl. purchasing
30 mln rub, repair and prospecting costs) 8 mln rub
Wells rate after repair works, mt/24h 3,0
Annual revenue per each well, rub 13
mln rub (1095 mt)
Annual profit per each well, rub 10
Investment profitability (% per year) 125%
The efficiency of the funds, which are
invested in oil extraction applying advanced technologies on
the abandoned oil fields, is:
Costs for oil fields purchasing (10 wells) 10-50 mln
Costs for electromagnetic prospecting 1
Wells repairing costs (per each) 4-5
Intensification costs 150
Total costs for 1 well (incl. purchasing
30 mln rub, repair, prospecting and
intensification) 185 mln rub
Wells rate after repair works, mt/24h 100,0
Annual revenue per each well, rub 438
mln rub (36 500 mt)
Annual profit per each well, rub 12
Investment profitability(% per year) 236%
If wells rate after repair confirms hydrocarbons
deposits existence, which were identified by electromagnetic prospecting, there
will be next step to attract a service company (better American one) to carry
on oil-producing intensification, what cause the well rate increase in 30 times
minimum, and likely in 50 times.
Not all oil reserves can be extracted.
There is an oil recovery factor that calculated as a ratio of the volume of
recoverable oil reserves to the volume of oil geological reserves.
Nowadays average value of this factor in Russia is 29-30% (in the USSR times it
was 36-38%, according to world practice surveys it is - about 45 %, but on
sites where advanced technologies are applied, it reaches 80%).
Hereby, taking into account that in Dagestan within
last 110 years, 37 small oil deposits were discovered, from
which it was extracted 40 mln mt of oil, there is a high probability to
extract additionally minimum 40 mln mt
of oil (even supposing that 30% of oil reserves has been already
extracted). Really it was extracted not more than 20%
Advanced oil-producing technologies have never been
applied on any preserved deposits.
Natural layer energy
Appliance of the advanced technologies
Classification of the oil recovery increase methods
By type of working agents the
classification of known methods of the layers’ oil recovery looks like
1. Thermal methods:
• Steam-thermal impact on a layer;
• fire flooding;
• hot water drive;
• huff and puff treatment.
2. Gas methods:
• air injection;
• hydrocarbon gas effect;
• CO2 effect;
• Nitrogen, flue gas effects etc.
3. Chemical methods:
• drive by water solutions of SAA (incl. foam
• polymer drive;
• alkaline solutions drive;
• acid drive;
• chemical compositions drive (incl. mycelia solutions etc.);
• microbiological effect.
• integrated technologies;
• non-draining reserves involvement into operation;
• barrier flooding in gas-, oil-bearing deposits;
• cyclic water flooding;
• forced drainage;
• graded thermal flooding.
5. Group of combined
From the viewpoint of the effect
on the layers system, a combined impact principle is applied in the most
cases, which combines hydrodynamic methods with thermal ones, hydrodynamic
methods with physical-and-chemical ones, thermal methods with
physical-and-chemical ones etc.
6. Methods of well
Particularly it is
important to say about so called physical methods of the well
rate increase. It is incorrect to unite them with methods of oil
recovery increase, because appliance of the oil-recovery increase methods
are defined by increased potential of the driving agent, while in the
physical methods potential of the driving agent is implemented by appliance
of the natural layer energy.
Mostly applied physical methods are:
• horizontal wells;
• electromagnetic effect;
• waves actions;
• other similar methods.
Geological exploration works based on advanced technologies
Within some last years
for oil- and gas- exploration advanced technologies were created, that proved
its’ efficiency by drilling results:
Differential – normalized
electrical prospecting – DNEP
Various modifications of
the electrical transient method in the near-field of source with the in-loop
installation – PTF
ElectroMagnetic 3D – FTEM-3D, patent RF №2446417.
In some cases to study
geological environment and to forecast oil-bearing characteristics, vertical
electrical penetrating by induced polarization method (VEP IP) is used, however
the sphere of its appliance is limited by depths of 300-500 m.
The most important
condition of efficiency of the geophysical methods is reliability of the target
object model. All considered technologies to some extent lean on the diagnostic
signs received as a result of a wide range of researches of geoelectric
properties of hydrocarbons deposits, executed in Russia and abroad, including those
which are carried on under the program so-called "Direct searches".
Such diagnostic signs are
the abnormal effects connected with secondary (epigenetic) changes of a
section. First of all this is an increase in specific electric resistance in an
oil-saturated collector and the rocks which cover a deposit, as a result of
hydrocarbons migration and a secondary section carbonatization. The second
important sign is increase of polarizability of rocks in the near-surface
deposits, caused by education electronic carrying-out minerals during sulph-treduction
process at hydrocarbons migration up on a section.
Method PTF is widely used
to study geo-electrical characteristic of the sites in oil-and-gas- bearing
provinces, mainly on the regional-searching stage. The forecast is carried out
on the basis of increase in electric resistance, the parameter of
polarizability isn't defined and doesn't participate in the forecast.
FTEM-3D and DNEP
technologies use all the same basic geo-electrical parameters - polarizability–
and resistance of the geological environment. They use the standard fixed
assets of the analysis and interpretation of data – the solution of straight
lines and the return tasks, one-dimensional and three-dimensional modeling of
the geo-electric environment. The basic difference consists in the accepted geo-electric
models of object of researches.
technology leans on the model offered by Moiseyev V. S. on the basis of the
induced potential logging analysis of wells on fields of Western
Siberia. As it was stated earlier, by Pearson's researches, over
hydrocarbons deposits the rocks column with a recovery situation of the
environment which is replacing with oxidizing around 1st from a day surface of
a regional water emphasis is formed. Exactly here, in a zone of a geochemical
barrier, according to Moiseyev, in productive wells on induced potential logging
curve area of sharp increase in polarizability is fixed.
Pic. 4. Data of induced potential logging of wells (by
Based on this effect, the
DNEP method directed on studying of layer-by-layer distribution of polarizing
properties of the environment, allows mapping zones of diffusive auras of
dispersion over deposits of hydrocarbons". Thus, the forecast of
oil-bearing capacity is based on secondary changes of the environment in the
top part of a section which not always have unambiguous communication with a
deposit of hydrocarbons at a depth.
technology uses fuller model in which the major element is the abnormal induced
potential zone connected directly with a deposit of hydrocarbons.
of the data characterizing area of formation of a deposit, shows that, ware-oil
contact (WOC) is no other than transformed "border undressed" phases.
On "the edge of the section" of phases favorable conditions for
restoration of sulphates (sulph-treduction), and concentration on it polar
organic compounds of lipidic or other nature (air, fatty acids, alcohols),
being characterized by high superficial activity" are created. The WOC
area ("the border undressed" phases), possessing high polarizing properties,
is electrically active part of a deposit.
The geo-electric model
(pic. 5) on which the FTEM-3D technology leans, is based on results of the
analysis of samples of a core and data logging. The deposit of hydrocarbons can
be considered as abnormal on conductivity and polarizability local object
located in a normal horizontally layered section. Anomaly of electric
properties of rocks in the field of an arrangement of a deposit is caused by a
number of the reasons:
– change of petrophysical
properties of collectors;
– increase in a
mineralization of reservoir waters in
near-contact zones of deposits;
– influence of the
deposit, as a local high-resistance object;
– change of physical
properties of containing rocks under the influence of migrating fluids, in
particular, formation of auras of calcitation and pyritization;
– existence of "the
edge of the section" phases (WOC) which possesses high polarizing
properties and is electrically active part of a deposit.
Such approach is used in
FTEM-3D electromagnetic prospecting. Appliance of this technique allows localizing
object in the plan, and gives the chance to divide the deposits located at
different depths, and depth of research can reach 5-6 km.
Рис.5. Geo-electrical model of hydrocarbons deposit
Thus, FTEM-3D technology
provides the most full both resistance and polarization characteristics of the
geo-electric section from day surface down to crystal base, while PTF
technology specifies a section on resistance only, and DNEP gives data about
electrical parameters of the upper part of the section only.
difference between PTF, DNEP and FTEM3D is technological methods of works on
site. The technique of works of these technologies provides: creation of an
artificial electromagnetic field. For PTF (pic. 6) the field is created in
horizontal ungrounded loop, measurements of a derivative vertical component of
a magnetic field (dBz/dt) in a loop located in a feeding loop also are carried
DNEP technology (pic. 7.)
provides: creation of an artificial electromagnetic field of a source in a form
of the horizontal grounded feeding line and measurement of an electric
component of an electromagnetic field, and along with tension on each of reception
lines is registered also the differential signal which level is very low.
Pic. 7. DNEP installation.
In FTEM-3D (pic. 8, 8а) the
feeding source in a form of the grounded line is fixed on a site of works, and
reception installation in the form of the horizontal electric line (MN)
connected to multichannel station (24 channels), moves on a regular network of
Pic. 8. FTEM-3D installation
heaviest part of installations is the feeding source that demands low resistance
of grounding and a heavy low-impedance wire for providing good conditions of
measurements (big currents, high level of a signal).
Techniques of PTF and DNEP
demand movement on profiles of all installation, including feeding source that
depending on an orogydraphyc and economical - industrial situation of the area
of researches complicates creation of regular dense networks of measurements on
a site of works, reduces productivity of works and increases their cost.
In FTEM-3D technology the
source in a form of horizontal (for land works) or vertical (for borehole and
superficial works) grounded line is fixed on the area of works and remains
motionless, and measurements are carried out on a network of profiles. Such
scheme of measurements provides high efficiency of works and necessary density
of measurements, depending on shooting and research problem scale, in
particular, allows conducting works in a complex with 3D seismic exploration.
Higher noise immunity,
and, respectively, higher precision of measurements in frequency area in the
FTEM-3D technology are to be noted as well.
9а FTEM-3D technique.