UPDATE: Rosneft wins auction to develop Erginskoye field

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MOSCOW, Jul 12 (PRIME) -- Russian oil major Rosneft has won an auction to develop the Erginskoye oil field in the Khanty-Mansi Autonomous District with a 20.071 billion ruble bid, while the starting price stood at 7.4 billion rubles, Natural Resources and Environment Minister Sergei Donskoi told reporters on Wednesday.

“As a result of the auction, Rosneft received a right to develop the Erginskoye field,” he said.

During the auction, 17 bid increments were made, he said.

Besides Rosneft, its unit RN-Uvatneftegaz, Gazprom Neft’s unit Gazpromneft-Khantos, and Saratov-based Pionergeo bid at the auction.

Donskoi said that Rosneft’s capital expenditures in the field in the next two years, before production at the field is launched, is estimated at about U.S. $500 million.

“Production at similar fields may reach 4–5 million tonnes (of oil) per year, we may expect this level of production at the Erginskoye field in five years after launch,” he said.

The field’s recoverable oil reserves amount to 18.842 million tonnes under the C1 category and to 83.877 million tonnes under the C2 category.

(60.7397 rubles – U.S. $1)

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