PRESS: Neftegazkholding to start drilling at Payakha soon

MOSCOW, Jun 3 (PRIME) -- Neftegazkholding, previously known as NNK-Aktiv – a subsidiary of Independent Petroleum Company of tycoon Eduard Khudainatov, plans to start drilling at its largest oilfield – Payakha – this week, Vedomosti business daily reported on Monday quoting sources.

“Drilling will start in the next two to three days,” an acquaintance of Khudainatov told the business daily.

One source said that the company had already invested 35 billion rubles in exploration, preparation of a geologic model, and booking of 420.2 million tonnes of reserves with the Federal Mineral Resources Agency. Another source confirmed the amount of booked reserves, but was unable to name the initial investment.

One of the sources said that the planned initial production plateau of the field is 26 million tonnes a year with the prospect of raising it to 50 million tonnes, which means the lifespan of the field should amount to more than 50 years, Vedomosti reported.

Khudainatov told investors two years ago that the Payakha project would need U.S. $5 billion in initial investment, and total spending on the project should reach $20.6 billion. An acquaintance of top managers of Neftegazkholding said that the sum had not changed. A source in one of the creditor banks told Vedomosti that the company and Khudainatov himself were overburdened with debt.

Neftegazkholding declined to comment on the source of money to be used for exploration and drilling. The Natural Resources and Environment Ministry did not respond to Vedomosti’s request for comment.

(65.3834 rubles – U.S. $1)

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