Russia’s Gazprom Neft sees Bazhenov shale oil commercial output in 2025

Gazprom Neft, which estimates that it can potentially extract 400 million tons of oil equivalent from Bazhenov, currently produces 150 tons per day from the formation. (Reuters)
Updated 01 March 2018
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Russia’s Gazprom Neft sees Bazhenov shale oil commercial output in 2025

KHANTY-MANSIISK, Russia: Russia’s Gazprom Neft expects to start commercial production from Bazhenov formation, the world’s largest shale oil resource, in 2025 provided it can reduce lifting costs from current estimates for the project, company officials said.
The International Energy Agency describes Bazhenov as the world’s largest source rock, a bed of ancient organic matter dating back to the Jurassic period which has given rise to most of the crude oil pumped from the fields of West Siberia.
Production of such oil is more costly than the extraction of the oil from conventional reservoirs.
“We understand that this is a very serious technological challenge,” Alexei Vashkevich, head of geological exploration and resource base development at Gazprom Neft, told reporters.
For the project to be viable, lifting costs needed to fall to 8,500 roubles ($151) per ton, Vashkevich said, without disclosing current estimates.
Kirill Strizhnev, who oversees the Bazhenov project for Gazprom Neft, said commercial production might start in 2025.
Gazprom Neft, which estimates that it can potentially extract 400 million tons of oil equivalent (8 million barrels per day) from Bazhenov, currently produces 150 tons per day from the formation.
The company initially planned to tap Bazhenov jointly with Shell but the international major withdrew from the project in 2014 following international sanctions against Russia for its role in Ukrainian crisis.


OECD warns of global economic slowdown

Updated 21 November 2018
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OECD warns of global economic slowdown

  • ‘We urge policy-makers to help restore confidence in the international rules-based trading system’
  • Trade tensions have already shaved 0.1-0.2 percentage points off global GDP this year

PARIS: The global economy has peaked and faces a slowdown driven by international trade tensions and tighter monetary conditions, the Organization for Economic Cooperation and Development warned Wednesday.
The OECD, which groups the top developed economies, said it had trimmed its growth forecast for 2019 to 3.5 percent from the previous 3.7 percent.
The 2018 estimate was left unchanged at 3.7 percent.
For 2020, the global economy should grow 3.5 percent, it said in its latest Economic Outlook report.
“The shakier outlook in 2019 reflects deteriorating prospects, principally in emerging markets such as Turkey, Argentina and Brazil,” it said.
“The further slowdown in 2020 is more a reflection of developments in advanced economies as slower trade and lower fiscal and monetary support take their toll.”
OECD chief Angel Gurria highlighted problems caused by trade conflicts and political uncertainty — an apparent reference to US President Donald Trump’s stand-off with China which has roiled the markets.
“We urge policy-makers to help restore confidence in the international rules-based trading system,” Gurria said in a statement.
Trade tensions have already shaved 0.1-0.2 percentage points off global GDP this year, the Economic Outlook report said.
If Washington were to hike tariffs to 25 percent on all Chinese imports — as Trump has threatened to do — world economic growth could fall to close to three percent in 2020.
Growth rates would drop by an estimated 0.8 percent in the US and by 0.6 percent in China, it added.
For the moment, the OECD puts US economic growth at 2.9 percent this year and 2.7 percent in 2019, unchanged from previous estimates, but trimmed China by 0.1 percentage point each to 6.6 percent and 6.3 percent.
It warned that “a much sharper slowdown in Chinese growth would damage global growth significantly, particularly if it were to hit financial market confidence.”
Laurence Boone, OECD Chief Economist, said “There are few indications at present that the slowdown will be more severe than projected. But the risks are high enough to raise the alarm and prepare for any storms ahead.”