The Power Of Natural Energy
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Khotugu Sulus is among the largest liquid Hydrocarbons and natural gas producer in Russia. The Company is principally engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons and have many years of operational experience in the Russian oil and natural gas sector through its association with other companies.
We carry commercial production of natural gas, gas condensate and crude oil at 20 fields. We stabilize gas condensate and we process stable gas condensate at our refinery Complex.
The Company processed 2,823 thousand tons of unstable gas condensate representing an increase of 4.8% as compared with the corresponding volumes processed in the prior reporting period. We processed 1,787 thousand tons of stable gas condensate at the Ust-Luga Complex, representing an increase of 1.2% in volumes processed at the facility in the first quarter 2020.
Preliminary natural gas sales volumes, including volumes of LNG sold, aggregated 20.69 bcm, representing a decrease of 6.8% as compared with the prior year period. Natural gas volumes sold in the Russian Federation in the first quarter 2020 were 18.24 bcm, whereas LNG volumes sold on international markets amounted to 2.45 bcm. The decrease in sales volumes on international markets was due to the decrease of Yamal LNG shareholders’ share, including KHOTUGU SULUS share, of LNG sales on the spot market, and a corresponding increase of Yamal LNG direct sales under long-term contracts.
The use of special hydrocarbon-based drilling mud allows to increase drilling speed and results in the high-precision penetration of production horizons. Geosteering technology enables to maximize the length of productive horizontal sections of our wells. Application of these technologies allows to materially increase flow rates.
DRILLING CUTTINGS AND PROCESSING PLAN
A unique drilling cuttings processing plant at the Yurkharovskoye field enables us to efficiently resolve the drilling cuttings utilization problem, while drilling at the coast of the Gulf of Ob, resulting in material environmental benefits and cost savings due to efficient recycling of hydrocarbon-based drilling mud.
A typical well casing at the Yurkharovskoye field is up to 245 mm in diameter with the length of horizontal part of the borehole exceeding 1,000 meters, which results in flow rate of up to 4.5 mmcm of gas per day. The use of large diameter and multilateral horizontal wells reduces the total number of wells required to develop the field, thereby minimizing the field’s overall capital expenditures.
Turbo-expanders operating at our Yurkharovskoye field allow to materially increase the efficiency of gas treatment operations due to much lower electricity consumption and full compliance with quality requirements to marketable gas.
METHANOL PRODUCTION FACILITY
Methanol is an integral element of natural gas and gas condensate production process allowing to avoid hydrate formation. A unique methanol production facility at our Yurkharovskoye field eliminated the need to purchase and transport methanol to the field, thus decreasing our lifting costs and minimizing potential environmental risks.
ALTERNATIVE ENERGY SOURCE
Solar panels and wind generators provide the necessary electricity to operate the telemechanic system and valves of the condensate pipeline connecting our exploration field with the production Plant therefore eliminating the need to build a costly high voltage power transmission line along the entire pipeline route and reducing pipeline construction time.
LPG DEHYDRATION UNIT
The LPG dehydration unit at our Purovsky Plant is the first of its kind to be constructed and utilized in Russia, which allows us to produce LPG to the highest quality requirements, including international standards for export purposes.
ON SPOT LOADING SYSTEM
was the first in Russia to introduce “On Spot” loading system at its Purovsky Plant to load stable gas condensate into rail tank cars. This loading system ensures the fastest loading possible (compared with gallery-type loading systems) while minimizing environmental risks.