In order to prevent a decline in oil production in KhMAO–Yugra (and to increase it in the future), new technologies and intensification of business efforts to develop hard-to-recover reserves (HTR) are needed, Semyon Garagul, CEO of Oil Resource, is sure.

Khanty-Mansi Autonomous Okrug–Yugra has been Russia's leading oil producing region for decades. The country's largest fields are concentrated here, and currently about 40% of all Russian oil is produced in KhMAO–Yugra. However, the situation in the industry is gradually changing: traditional reserves are being depleted, and production from mature deposits is becoming less profitable.

If in 2019 the region produced 236 million tons of oil, in 2023 this figure fell to 216 million tons. The forecast for 2024 is 205 million tons, and this is not the limit of the decline.

The most important fields in the region are Samotlor, Priobskoye, Fyodorovskoye, Mamontovskoye and a number of other large deposits. Samotlor is one of the largest deposits in the world, initially containing over 7 billion tons of oil, but most of these reserves are now considered hard to recover. In recent years, production has been based mainly on waterflooding and multi-stage fracking (MSF) technologies.

Hard-to-recover reserves: the hidden potential of the region

Despite the decline in conventional production, Yugra's oil potential is far from being exhausted. The region has colossal reserves of hard-to-recover oil, primarily in the Bazhenov suite, a geological layer formed about 140 million years ago. Oil Resource plans to focus its efforts and scientific support on its fuller development through the use of HTR in the suite.

Total oil resources of the Bazhenov suite in KhMAO–Yugra amount to 18 billion tons, of which 2 to 5 billion tons are considered recoverable at the current level of technology according to various estimates. In addition, the Tyumen suite and dolomites of Achimov deposits, which contain tens of billions of tons of oil but require unique recovery techniques, are considered promising for development.

Today, production of HTR in KhMAO–Yugra is already underway, but its volume is still small - about 7 million tons per year. By 2025 this figure may increase to 10 million tons, and by 2030 - up to 30 million tons, if the planned technological projects are implemented.

But the potential could be even higher. Oil Resource is developing a new technology for producing HTR, which, according to preliminary data, will allow additional recovery of up to 25-30 million tons of oil per year. This will be a serious step towards stabilizing production in the region and ensuring the country's energy security.

Economic effect: how much money will new technologies bring?

The HTR development will not only help maintain production at a stable level, but will also bring serious tax revenues to budgets at all levels.

Tax revenues from the oil industry amount to more than 1.2 trillion rubles a year, and most of these funds go to the federal budget at present. The regional budget of KhMAO–Yugra receives a significant part of its revenues precisely due to oil production, and the decline in production is already affecting its revenues.

If the production of HTR grows to 10 million tons per year, it can bring the region up to 50 billion rubles of additional tax revenues. If the production of hard-to-recover reserves increases by 25-30 million tons, additional revenues to budgets of different levels may amount to 150-200 billion rubles annually,

— says Semyon Garagul, CEO of Oil Resource oil company.

However, possible tax incentives and changes in legislation may adjust this figure. The state may provide tax preferences to oil companies to encourage them to develop complex fields. In this case, part of the taxes will be redistributed to the federal budget, but the economic effect for the region will still remain significant.

Investment and technology: what is needed to develop HTR?

Development of hard-to-recover reserves requires significant investments. Oil Resource estimates that the development of the Bazhenov suite alone will require at least 900 billion rubles over the next 10 years. These funds will be spent on construction of new wells, introduction of advanced production methods and infrastructure development.

The most promising technologies:

• Multi-stage fracking (MSF), a method that allows oil production from tight reservoirs, used at the Samotlor and Priobskoye fields.
• • Multifluid thermal technology (MTT) is an innovative method that helps increase oil recovery by changing rock properties, intraformational generation of synthetic oil from kerogen and molecular modification of bituminous oil into lighter oils. This is the method that Oil Resource plans to use.
• Multistage hydraulic fracturing in horizontal wells is a technology actively used in the USA and Canada and adapted for Russian conditions.

A special role in this process is played by Oil Resource, which is introducing a new technology for producing HTR, which, according to preliminary data, will increase technologically recoverable oil reserves by tens of billions of tons through commercial development of the Bazhenov suite and effective reworking (increasing the oil recovery factor) of mature fields.

Experts note that without active implementation of innovations and significant investments, hard-to-recover reserves will remain inaccessible. However, with a comprehensive approach to their development Russia will be able not only to maintain its position in the global oil market, but also to significantly improve the efficiency of the industry.

What is in store for the oil industry in Yugra?

The future of oil production in KhMAO–Yugra largely depends on the speed of introduction of new technologies. Conventional fields are gradually depleting, and the only way to maintain production volumes is to actively develop hard-to-recover reserves.

For the region, this means new jobs, investment growth and stable tax revenues. For Russia as a whole, it means the opportunity to remain a leading player in the global oil market.

If companies operating in Yugra are able to promptly implement advanced technologies, and the government supports them in this process, KhMAO–Yugra will retain its status as the country's main oil center, ensuring Russia's energy security for decades to come

— says Semyon Garagul, CEO of Oil Resource oil company.

Socio-economic impact of HTR development: new jobs and regional development

The development of hard-to-recover oil reserves in Yugra is not only a way to support hydrocarbon production, but also a serious stimulus for the region's economy. Large-scale investments in the development of the Bazhenov suite and Achimov deposits will create new jobs, develop infrastructure and increase tax revenues.

The implementation of large-scale projects for the production of HTR will require the involvement of tens of thousands of specialists of various professions according to experts' estimates. Oil companies are already actively cooperating with universities and colleges to train personnel to work at new types of fields.

In addition, the development of new fields will require the expansion of transportation and energy infrastructure. Projects are already underway to modernize oil pipelines and build new power plants, which will not only ensure reliable power supply to production facilities, but will also improve living conditions in neighboring communities.

Support for small and medium-sized businesses will be an additional growth factor. The development of hard-to-recover reserves will require the supply of equipment, specialized machinery, logistics and services for specialists working in the fields. This will create additional opportunities for Yugra entrepreneurs who will be able to participate in major oil projects and receive stable orders.

Thus, the HTR development becomes not just a technological process, but an important driver of the region's economic growth. If oil companies and the state continue to actively invest in the production of hard-to-recover oil, Yugra will be able not only to maintain its leading role in the industry, but also to create new business opportunities.

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