Volgodeminoil A Long-Standing Partnership
Volgodeminoil is the longest-standing joint venture for hydrocarbon production between a Russian and a Western European partner. It produced more than 4.4 million barrels of oil equivalent in 2018.
Volgodeminoil is the longest-standing joint venture for hydrocarbon production between a Russian and a Western European partner. Wintershall Dea and RITEK, which is a subsidiary of LUKOIL, one of Russia’s largest oil producers, each hold a 50 per cent stake in the company. The company operates in three licence areas in the Volgograd region, covering around 13,625 square kilometres in total. In 2018, more than 4.4 million barrels of oil equivalent were produced.
In 1992, Volgodeminoil was the only joint venture in Russia that was established without having confirmed oil reserves and which only began to explore for oil after its foundation. In the vast expanses of southern Russia, however, the partners quickly found what they were looking for. Despite all the difficulties, Volgodeminoil succeeded in establishing successful production: Oil and natural gas are currently being produced from eleven fields. In August 2018, the company produced the ten millionth tonne of oil.
Volgodeminoil plans to start production in the Zalivnoye field in 2019. To increase efficiency on the Molodezhnoye, Avilovskoye and Dobroye fields, gas-powered CHP units are being installed to cover the company’s own electricity needs. An extensive 3D seismic campaign was also carried out covering an area of 1,600 square kilometres, with further exploration wells to follow.
Volgodeminoil is rightly proud in achieving international environmental and energy standards. The joint venture has a certified integrated occupational health and safety management system based on the ISO 14001 and OHSAS 18001 international standards. There is no gas flaring. Associated gas is collected, processed in plants belonging to the partner RITEK, and then fed into the pipeline grid. Part of the associated gas is processed in Volgodeminoil’s own plants and used for generating electricity.