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Vladimir Putin had a working meeting with Chairman of the Gazprom Management Board Alexei Miller. Mr Miller briefed the President on the situation with Russian gas exports to Europe and the company’s current activities, including work at the Tambey fields in the Yamal region and the state of progress on the Turkish Stream pipeline project.
President of Russia Vladimir Putin: Mr Miller, we wanted to discuss with you a number of big projects. You said that you have information on reserves, more precisely, on their substantial increase.
Gazprom CEO Alexei Miller: Yes.
On January 1, 2017, Gazprom’s explored gas reserves came to 36.4 trillion cubic metres. Since 2005, Gazprom has had an annual reserve replenishment to annual production ratio of more than 1.
Our main geological exploration regions are the Far East and Eastern Siberia, and the continental shelf of the Okhotsk, Barents and Kara seas. Of course, there is also our prime new production region – the Yamal Peninsula.
Gazprom has carried out comprehensive geological exploration work at the Tambey group of fields, conducted 3D seismic studies over an area of 2,650 kilometres, and drilled 14 exploratory wells. We have an increase in reserves of 4.1 trillion cubic metres of gas. The Tambey cluster’s reserves thus come to 6.7 trillion cubic metres.
Vladimir Putin: When did you reach this conclusion on the increase in reserves?
Alexei Miller: Mr President, this is a recent conclusion, based on the geological exploration results.
Vladimir Putin: But what was the timeframe for work in these fields?
Alexei Miller: The work began in 2008.
Vladimir Putin: And now you have the confirmation.
Alexei Miller: That’s right.
Vladimir Putin: I want to congratulate you. This is important news and a big event for our country’s energy sector. I think that this is very important news for us here in Russia and for our partners.
I ask you to present proposals on your plans for work with these new reserves, but I ask you to pay attention to at least two important circumstances.
First, when choosing your partners, work on the principle that they must be able to raise the needed financing for joint work independently, if you need such partners.
Second, make maximum use of the technological possibilities offered by Russian science and industry. The more independent we are in this area, the better. This should support our economy’s high-tech sectors, and Gazprom can play an important and prominent role here.
Alexei Miller: Mr President, without question, this substantial increase in reserves enables Gazprom to look at carrying out new liquefied natural gas, gas processing, and gas chemical projects.
This is all the more so as the Tambey group of fields contains what we call wet or rich gas, which has high ethane concentration. Deep processing of the wet gas components will certainly increase effectiveness of all reserves in the Tambey group.
Projects of this kind are capital intensive, of course, and technologically complex, and it is common international practice in carrying out such projects to bring in partner companies in order to reduce the risks.
Gazprom is ready to look at the possibilities for establishing joint ventures. Of course, we are looking primarily at Russian companies, which already have capability in liquefied gas and have experience working with reserves of wet gas.
Vladimir Putin: Good. You wanted to say a few words about your big projects.
Alexei Miller: Mr President, regarding our gas transportation projects for delivering gas to Europe, our supplies to the European market continue to grow.
Our supplies to the European market have increased 15 percent since the start of 2017, compared to the results for the same period last year. In absolute terms, this is 8.6 billion cubic metres more than last year.
This increase in demand confirms our plans to carry out new big gas transportation projects, in particular, the Turkish Stream project. We have already fully completed the preparatory and mobilisation work, and I can tell you that we are ready to start laying the marine section of the Turkish Stream pipeline within the next few days.
Vladimir Putin: Very good. We discussed this project with our Turkish colleagues yesterday. I am sure that our Turkish colleagues will offer effective support.
You need to begin this work and we will see how the project develops. Go ahead.
Alexei Miller: Yes, Mr President.
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May 4, 2017, The Kremlin, Moscow