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Achimgaz Partnership with vision

Achimgaz – a joint venture between the Russians and Germans. In Novy Urengoy in Siberia, no less, one of the most remote locations imaginable, that is where Wintershall and Gazprom produce natural gas and gas condensate together. Withstanding extreme climatic and geological challenges. AO Achimgaz was founded in 2003 as a 50:50 joint venture between Gazprom and Wintershall. The companies produce natural gas and condensate from the Achimov horizon in Block IA of the Siberian Urengoy reservoir. The field is situated about 3,500 kilometers north-east of Moscow.

Novy Urengoy City on the Arctic Circle

The town of Novy Urengoy lies 35 kilometers from the Arctic Circle in the sixth-largest region of Russia, the Jamal-Nenets Autonomous District. Although it is twice the size of Germany, there are just 500,000 people living there. Novy Urengoy itself has 100,000 residents. As well as rail and air links, today the city is also connected with the surrounding region by motorway.

However, traveling by car is a challenge because of the distance to the other economic centers and because of the severe weather conditions. Hence, the city provides its inhabitants with all the conveniences of daily living locally. As the unofficial capital of Russian gas production, Novy Urengoy also benefits financially. The relatively high salaries of the gas workers and the tax revenues ensure prosperity here.

Surface Area

357,121 m²
Surface area Germany

17,075,400 m²
Surface area Russia

Around 100,000 people are currently living in Novy Urengoy, and most of them are young. There are over 2,000 organizations and businesses. Revenues from the gas industry allow the city council to make large investments in education, culture and sport.

Population

81,858,000
Germany

142,905,200
Russia

Industry is the backbone of the regional economy in Novy Urengoy. And the Gazprom subsidiaries are among the biggest employers: Gazprom dobycha Urengoi and Gazprom dobycha Jamburg, which together produce 74% of Russia’s total natural gas production. The gas produced by GP dobycha Urengoi and GP dodycha Jamburg flows through pipelines into the standardized Russian network, and from there to Eastern and Western Europe.

Key project figures

  • Project duration: 40 years
  • Total production volume: Up to 200 billion cubic meters of natural gas and 40 million tons of condensate.
  • Total investment: over two billion euros.
2003 Formation of Achimgaz by
Wintershall and Gazprom
15 Mil. cubic meter of natural gas per day are
produced by 40 wells
200 bn cubic meter of gas will be produced
during the next 30 years
40 Mil. tons of condensate will be
produced during the next 30 years

Effective February 2015

Achimgaz Drilling under great pressure

Drilling under great pressure
The Achimgaz project is extremely challenging. The gas-bearing Achimov formation lies at a depth of around 4,000 meters. That means very dense rock with high prevailing pressures and temperatures. The infographic shows how and when development is carried out in Block 1A.

The Achimgaz wells in block 1A
Pilot phase

Around 3.2 million cubic Meters of natural gas and 1.400 tons of condensate were produced every day from the six pilot wells.

New start

Another 20 wells were completed in the initial phase of full field development. Achimgaz worked initially with two derricks, and later with four.

Full field development

Block 1A of the Achimov formation will enter full field development with up to 113 wells planned. 

The conditions at the derrick are extraordinary: the thermometer can fall to as low as minus 40 degrees.

The production facilities are designed to withstand minus temperatures of over 50 degrees and currently produce 15 million cubic meters of natural gas a day.

New Achimgaz-Film

Achimgaz - a joint venture between the Russians and Germans. And of all places it is in Siberia, one of the remotest locations imaginable where there are extreme climatic and geological challenges. ZAO Achimgaz was founded in 2003 as a 50:50 joint venture between Gazprom and Wintershall. The companies produce natural gas and condensate from the Achimov horizon in Block IA of the Siberian Urengoy reserve. The field is situated about 3,500 kilometers north-east of Moscow.

 

Impressions of Achimgaz

Investments by 2019

The partners plan to produce up to 200 billion cubic meters of natural gas and 40 million tons of condensate from the concession over a period of more than 40 years.  The joint venture produced around 3.4 billion cubic meters of gas from 40 wells in 2014. 113 wells are expected to increase the annual production to eight billion cubic meters in the coming years.

 

The history of the Joint Venture

2019 Expected completion of drilling
activities (113 wells overall)
2014 The project reaches an important milestone:
the joint venture has produced around ten
billion cubic meters since it was founded
2011-2013 Launch with another 20 wells and
beginning of commercial production
2008-2011 Six pilot wells
2006 Development of Achimov horizon
begins (building of roads, pipelines
and processing infrastructure)
2004-2005 Surveying work carried out
2003 Founding of the Achimgaz Joint Venture. Wintershall and Urengoy Gazprom
(today: Gazprom Dobycha Urengoy) agree to develop Block 1A of the
Achimov formation

Pooling know-how & competence

The know-how and expertise of both partners complement each other perfectly in the difficult-to-access Achimov formation in western Siberia. While Gazprom specializes in gas production in Arctic regions, Wintershall has technical expertise in drilling wells at a depth of 4,000 meters and in complex rock formations.

The project is an outstanding example of excellent cooperation among the staff, who come from various countries all over the world: at Achimgaz Russians, Ukrainians, Germans, Tatars, Argentineans, Americans and colleagues from many other nations all pull together.One of the Germans is 46-year-old Ingo Neubert, who has been  involved in various Wintershall projects over the last 20 years. He came to Novy Urengoy as the Deputy Managing Director of Achimgaz in 2011. He has been managing the joint venture together with his Russian colleagues ever since. The team endeavors to incorporate Wintershall’s experience into the local planning, such as the use of casing technologies for drilling or safety barriers.

Facts & Figures