Our Arctic Neighbors: ConocoPhillips Russia joint venture advances

Naryanmarneftegaz, a Lukoil and ConocoPhillips joint venture (70 percent and 30 percent respectively), has completed construction of the second stage of the Yuzhno-Khylchuyuskoye oil field in Russia’s Nenets Autonomous Okrug, the company said Dec. 10. In the second stage, the capacity of the oil treatment unit was increased by 3.8 million tons a year, and a high-pressure compressor station and sulfur disposal and storage facilities were built.

Construction of the first stage was completed in June 2008. The first stage comprised 32 development wells, an oil treatment unit, an oil desulfurization unit, a tank farm, an export line pump house, a 17-mile high-pressure gas pipeline, a gas treatment station, a 125-megawatt power supply facility and 178 miles of high-voltage transmission lines.

The oil production level at the field is expected to reach 7.6 million tons a year (more than 150,000 barrels per day) in 2009.

—Sarah Hurst