EAST SIBERIAN PETROLEUM RESOURCES

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CIA-RDP85S00315R000200020002-7
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T
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20
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December 21, 2016
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December 5, 2008
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2
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Publication Date: 
September 1, 1984
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REPORT
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East Siberian Petroleum Resources Approved For Release 2008/12/05 : CIA-RDP85SO0315R000200020002-7 Top Secret i 4a X39 25X1 eptem er Copy 3 7 8 Approved For Release 2008/12/05 : CIA-RDP85SO0315R000200020002-7 s Intelligence tl h East Siberian Petroleum Resources Office of Global Issues. Comments and queries are welcome and may be directed to the Chief, Strategic Resources Division, OGI, Top Secret 25X1 GI 84-10139C Approved For Release 2008/12/05 : CIA-RDP85S00315R000200020002-7 East Siberian Petroleum Resources Key Judgments Reserve limitations in existing oil-producing areas could begin to constrain Information available Soviet oil production by the early 1990s. To offset this potential problem, as of 31 July 1984 the Soviets have begun to search for petroleum resources in new areas. In was used in this report. the areas being examined, exploration of East Siberia is furthest along.'Li- mited funding, severe environmental conditions, and a lack of infrastruc- ture and equipment, however, have slowed the petroleum development activities in even that area. On the basis of our analysis of the complex ge- ology of the East Siberian petroleum reservoirs, we believe that the Soviets have located and drilled reservoirs containing between 500 million and I billion barrels of proved oil reserves-at most only about 2 percent of the estimated proved reserves. 25X1 In our judgment, the geology of the region strongly weighs against the possibility that the Soviets will discover the giant fields necessary to warrant a major development effort. When arrayed against the distance to industrialized regions, the complexity of the petroleum reservoirs, and the quantity of oil, it is doubtful that it would be cost effective in the near term to concentrate on the development of the petroleum resources of East Siberia even if substantial oil discoveries were found. In view of this assessment, we expect: ? Little increase in oil exploration in East Siberia in the near term. ? Stronger Soviet efforts in exploration of offshore areas, especially the ? Development of lower quality oil reservoirs in less remote areas through the use of enhanced oil recovery techniques 25X1 The poor prospects for major oil discoveries in East Siberia, coupled with stagnant output in West Siberia, further increase the likelihood of a decline in Soviet oil production during the 1990s. Given the seven- to 10-year leadtime involved in bringing new oil deposits into commercial produc- tion-even in the unlikely event that major discoveries are made in East Si- beria-the production would not have much impact until the mid-1990s at the earliest.) 25X1 Top Secret - 25X1 C1 R4-I01 ?QC East Siberian Petroleum Resources Background The growth that has characterized Soviet oil produc- tion since the 1940s has been slowed by production declines in the European oilfields and diminishing growth in West Siberia (figure 1). Production pla- teaued at about 12.4 million barrels per day (b/d) in October 1982, and in 1983 West Siberia-which accounts for 60 percent of national oil output-for the first time failed to meet planned production goals. Operational problems and adverse weather were largely responsible for the production shortfall. Unless new oil discoveries are made, reserve limitations in West Siberia could increasingly constrain production, possibly as soon as the early 1990s. In the past, the Soviets have been able to maintain growth in oil production by finding and developing large new oil provinces-Urals-Volga in the 1950s and West Siberia in the 1960s and 1970s. Spurred by -expected declines in the West Siberian reserves later this decade, the Soviets are examining the petroleum potential of several new areas-the Barents, Kara, and Sakhalin offshore areas, and onshore in East Siberia. The exploration in East Siberia is furthest along. Some Soviet geologists claim the region con- . tains more oil than West Siberia, but their claim is not substantiated by geological data. Moreover, devel- opment of any of these areas would entail an enor- mous commitment of investment and manpower at a Geologic and Geographic Setting The East Siberian platform '-the heart of the re- gion's petroleum potential-is a vast plateau located between.the Lena and-Yenisey Rivers (figure 2). At 3.5 million square kilometers, it is one of the largest platforms in the world and is'mostly unexplored. Preliminary data indicate that it contains some of the world's oldest petroleum reservoirs. The oil-bearing potential of ancient reservoirs is a subject of debate among petroleum geologists in the USSR and in other countries where similar reservoirs exist.' Most West- Figure 1 USSR: Regional Oil Production, 1970-83 25X1 West Siberia 25X1 Other ern geologists tend to discount their petroleum poten- tial, but Soviet experience in East Siberia as well as discoveries in Australia and China indicate that petro- Exploration and Development The Soviets have been exploring the petroleum poten- tial of East Siberia since the early 1900s, when they drilled four unsuccessful shallow exploration wells on the shores of Lake Baikal. By the end of the 1930s, large-scale mapping and shallow drilling were accom- plished along the periphery of the East Siberian platform. By the mid-1950s, the first strong flow of gas and condensate from a well in the Ust-Vilyuy area established the promise of the lower Vilyuy River region. The concentration of exploration in that area, however, caused the Soviets to neglect the rest of East Approved For Release 2008/12/05: CIA-RDP85SO0315R000200020002-7 Figure 2 The East Siberian Platform Me unp.e Stale. the ..' the ncmp on000n of E.tonl.. Ultra, and o.nu.nu o the So:>t Union. Other bounty ,.p....nb.bn ~. nou.......ny.uuoro.m.. Irkutsk China 0 1000 Kilometers Sea of Okhotsk Sea of Japan r tapap Exploration in East Siberia continued in the 1960s when the Markovo oil and gas field was discovered. Although four commercial oilfields have since been developed-Danilov, Verkhnechon, Dulismin, and Markovo-the success rate, or ratio of drilling to actual oil finds, has been disappointing, especially compared with the West Siberian basin. Moreover, most of the discoveries in East Siberia have been gas Results from exploration in 1981-82 revived hope for the development of large-scale production in East Siberia. Oil flows were obtained from the Tasyur- yakh, Verkhnevilyuchan, and Vilyuy-Dzherbin fields, and numerous traces of oil were observed in the Ozern and Toynokh fields. The Danilov field, discovered in East Siberian Platform Soviet Us ion 1981, yielded 2,450 b/d from three wells, and one well in the Verkhnechon field produced 2,200 b/d. The quality of East Siberian oil and condensate is highly correlated with the age of the reservoirs. Oil in the older Proterozoic and Cambrian reservoirs is generally a light crude with a low sulfur content, comparable to Saudi light oil (tables 1 and 2). Heavier crudes with higher sulfur, comparable to some Mexi- can heavy crudes, are generally found in the younger About 550 million years ago, a barrier reef covered by a shallow sea extended across the East Siberian platform. Petroleum source beds lay below the reef, and salt and other sediments accumulated in vast lagoons within the reef area. The salt acts as the primary seal for the oil and gas pools in the Lena- Tunguska province in the southwest part of the East Siberian region. The reservoirs themselves are Cam- brian limestones and older sandstones (appendix B). The other petroleum-bearing province in East Siberia is in the Khatanga-Vilyuy region. The deposits of this region are much younger than those in the Lena- Tunguska region, dating from the Paleozoic and Mesozoic ages. Oil and gas pools in the Khatanga- Vilyuy region occur as small anticlines (domes)-also called structural traps formed by the uplift of the strata. This uplift is probably responsible for the predominance of gasfields in this region. Such an uplift reduces the pressure in the reservoir, causing gas to come outfsolution and rise to the higher part In contrast to West Siberia, where petroleum traps are structural and relatively uidaulted, East Siberia contains mostly stratigraphic traps, complicated by faulting and a lack of continuity of sedimentation figure 3). The presence of stratigraphic traps requires Despite these limited successes, shortages of seismic and drilling equipment have retarded Soviet drilling efforts in East Siberia. Drilling density is only one well per 3,200 square kilometers, compared with one well per 12 square kilometers in the middle Ob' region of West Siberia. The distribution of drilling in East Siberia is uneven and heavily concentrated in areas near previous discoveries. Extrapolating from past trends, we project that between 800,000 and 900,000 meters will be drilled in East Siberia between 1980 and 1985, roughly 3 percent of planned drilling Top 25X1 more intense application of geophysical exploration techniques and extensive drilling programs usually not required for delineation of structural traps. At a minimum, because of its discontinuous shape, far more drilling should be required to measure the size of a stratigraphic trap than a structural trap. The drilling requirements alone would place an added strain on already taut Soviet investment and man- power. Moreover, given the complexity ofstratigraph- ic traps, the Soviets could not be as certain about the amount of recoverable oil as would be the case when developing structural traps. 25X1 The platform is some 3,000 kilometers east of Mos- cow, 25X1 far from the major industrial and population centers of European Russia. With the possible excep- tion of Antarctica, the climate of East Siberia is the worst in the world. The economic activity that does exist in the region, including oil exploration, is concentrated alon the rivers, the area's main trans- portation arteries Population density is 25X1 only one person per square kilometer. Although the Soviets have emphasized the need to develop the 25X1 natural resources of remote regions of the country, .including East Siberia, the region has been given only a small share of total investment allocations. Despi 25X1 a lack of precise data, we can say that, given the complicated geology, the infrastructure requirements, and severe climate, costs of petroleum production in East Siberia probably would be about the highest in the USSR. 25X1 The Reserve Base The size and quality of reserves will ultimately deter- mine Soviet development of the East Siberian plat- form and its contribution to future Soviet oil produc- tion 4 The Soviets have already demonstrated in West Siberia that they will develop remote areas if the quality and quantity of oil justify the enormous The term quality as applied to Soviet reserves refers to the characteristics of the oil-density, viscosity, and chemical composi- tion-and of the reservoirs-size, depth, porosity, permeability, temperature, and pressure-which determine the speed, ease, and cost of oil extraction 25X1 25X1 To See t 1, 25X1 Figure 3 East Siberia: Types of Oil and Gas Traps Source: Geology of 0il and Gas in the Siberian Platform; Kontrovich, Surkova, and Trafimuk; Moscow, "NEDRA" 1981. investment. On the basis of our geologic analysis of East Siberia, we estimate that the Soviets have locat- ed and drilled wells in reservoirs containing between 500 million and 1 billion barrels of proved oil reserves. This amount represents at most 2 percent of estimated Soviet reserves and is sufficient to support only 40 to 80 days of national production at the current rate of output. Moscow has also delineated areas containing an estimated 3-11 billion barrels of potential re- serves-amounts that can be regarded only as specu- lative at this phase. Of the few estimates available on the East Siberian petroleum potential, our estimate of proved and potential reserves is lower than those of Our geological analysis indicates that the quality of East Siberian oil reservoirs is much worse than that of the reservoirs in West Siberia. The reservoirs in East Siberia are deep, averaging about 2,800 meters (with some as deep as 4,000 meters), compared with an average depth of 2,200 meters in West Siberia. Moreover, the reservoirs are characterized by ex- tremely low porosity and permeability,' thereby re- ducing well flow rates and raising drilling require- ments (table 1) ' We have not made an estimate of natural gas reserves in East Siberia. Other US agencies place conventionally recoverable gas resources in a range between 72 and 278 trillion cubic feet (tcf) with 158 tcf as a mean gas reserve base. In addition, gas-hydrate deposits in the northern permafrost area are estimated to contain possibly 27 tcf of recoverable gas. ' Porosity is the percentage of rock bulk volume occupied by open or pore space in which oil can accumulate; Permeabilit is a measure of ease with which fluids move through pore space. 25X1 Approved For Release 2008/12/05 : CIA-RDP85SO0315R000200020002-7 op ~wecret Table I East Siberia: Physical Characteristics of Proterozoic and Lower Cambrian Petroleum-Bearing Horizons Age Suite Productive Horizon (Lithology) Thickness (meters) Porosity (percent) Permeability (millidarcys) Early Cambrian Angara Kelorskiy (carbonate) 16 to 30 1.4 to 7.0 0 to 185 Bil'chir (carbonate) 60 to 120 0.5 to 11.0 0 to 24 Bulay Birkin (carbonate) 90 to 100 0.06 to 1.0 0 to 253 Bel'ya Atovo (carbonate) 60 to 90 0.3 to 16.0 0 to 24 Khristovorova (carbonate) 50 to 64 0.5 to 1.5 0 to 100 Usol'ye Balykhtin (carbonate) 9 to 10 0.6 to 8.0 Fractures up to 10 Osa (carbonate) 15 to 100 0.1 to 25.0 Up to 163 Ust'-kut (carbonate) Up to 90 0.7 to 12.0 0 to 36 Early Cambrian to Vendian Preobrazhenka (carbonate) 17 0.3 to 12.0 0 to 8 Verkhnetarsk (sandstone) Vendian (Proterozoic) Parfenovo (sandstone) Yaraktin (sandstone) Markovo (sandstone) Bezymyannyy (sandstone and conglomerate) East Siberia in the Years Ahead In our judgment, the distance from the economic heartland and the extreme environment will cause the Soviets to defer any major exploration of East Siberia at least through the 1980s. Total drilling in the area may increase to about I million meters during the next five-year plan, which would still represent only a minor increase and a small fraction of the total Soviet Our geologic evaluation of the areas that the Soviets are targeting indicates that these reserve additions will not be large. Most of the petroleum in East Siberia is in fractured carbonate reservoirs formed by stratigraphic trapping and faulting, making them very difficult to locate and requiring the use of sophisticat- ed geophysical equipment and techniques. Unless the Soviets acquire such equipment, especially the spe- cialized seismic gear,' success in locating East Siberi- an traps is not likely to improve over the currently 25X1 The geology of East Siberia strongly weighs against the possibility that the Soviets will discover the large fields necessary to trigger a major development effort. ' The Soviets will need to procure Western seismic equipment that is capable of delineating complicated stratigraphic traps, such as common-depth-point reflection seismic gear, computers, and soft- ware to process the data. Table 2 East Siberia: Oil and Condensate Characteristics Depth Reservoir Choke Oil Condensate Gas Condensate/ Gas/Oil Ratio Specific Gravity Specific Gravity Sulfur Content Formation Pressure Temperature (meters) (millimeters) (barrels per day) (barrels per day) (million cubic feet Gas Ratio of Oil of Condensate (percent) (kilograms per C) per day) square centimeter) Preobrazhenka 1,690 Middle Moty (Preobrazhenka) Kuyumba 2,170 Middle Moty 11.3 2,520 70 (dolomite) Figure 5 East Siberian Drilling, 1950-90 1,000 r 750 r 500 250 On a worldwide basis, 82 percent of the 300 giant oil and gas fields discovered has had no major sedimenta- tion discontinuities or faulting in their cross sections. The prevalence of such unconformities throughout the petroleum-bearing areas of East Siberia greatly low- ers the odds that the Soviets will find fields compara- ble to Romashkino or Samotlor, which stimulated the rapid development of the Urals-Volga and West Siberia, respectively The low probability of major oil discoveries in East Siberia is further supported by the low production of analogous reservoirs in the Amadeus basin in Austra- lia and the Tientsin area in China. Although oil discoveries have been reported in these regions, the reserves are relatively small. In addition, the geologi- cal similarity between the East Siberian stratigraphic section and "sub-salt" areas of the Northwest Territo- ries in Canada suggests that the area is probably gas prone. Exploration in the Canadian areas has yielded gas to oil reserves in a ratio of more than 2,000:1. Even if the Soviets find a giant oil or gas field in East Siberia, the cost of development of such fields will Toro ecret 25X1 probably be prohibitive, at least in the near term. We believe any development of production capacity in this decade, and probably the next, would be limited to small amounts for local use- 25X1 Although existing evidence indicates that develop- ment of the East Siberian reserve base may not be economical, further exploration could improve the prospects. According to unclassified Soviet literature, Moscow has stated its determination to search for new and larger petroleum deposits in the area. We believe exploration in East Siberia will be largely driven by academic and scientific interest in the unique reser- voirs and reluctance to abandon a virgin area in the face of declining prospects in older regions. This effort is likely to result in the addition of increments to the reserve base into the 1990s. 25X1 Implications for Soviet Oil Production and Western Imports The lackluster results of the exploration work in East Siberia is probably no surprise to the Soviets. Despite some optimistic remarks in the press and scientific literature, Soviet long-range planning indicates little expectation of much production in East Siberia in the near term. This will force the Soviets to look else- where to find another petroleum province and to make greater efforts to hold production as high as possible in producing regions. To do either, the Soviets will need to step up imports of Western (largely US) petroleum production equipment and technology Geologically, the Barents Sea is the most likely 25X1 candidate for petroleum discoveries, and exploration suggests that the Soviets have come to the same ' conclusion. Locating and developing these deposits will increase the need for sophisticated equipment and know-how, especially as operations move into deeper waters. Some of this equipment is subject to trade controls, however, because of its potential military 25X1 For onshore deposits, the Soviets are counting on Western enhanced oil recovery (EOR) technology to increase the recovery from older fields and to produce underdeveloped fields that contain heavy oil. In the past six years, the Soviets have spent more than $60 million to acquire FOR equipment, chemicals, and plants largely from the United States, Italy, and Japan. We expect that they will continue to purchase large amounts of FOR technology, much of which will probably be earmarked for use in West Siberia. We also anticipate that the Soviets will continue import- ing other types of Western equipment and technology, such as submersible pumps, drill pipe, and gaslift The poor prospects for major oil discoveries in East Siberia, coupled with stagnant production in West Siberia, increase the likelihood of a decline in Soviet oil production during the 1990s. Whether Moscow is willing to commit the resources required to achieve any further increase in oil production or to spend hard currency to import Western technology will depend on how quickly West Siberian reserves begin to constrain production. In any event, we expect the Soviets to push development of lower quality fields and reser- voirs in less remote areas where infrastructure is TOP Secret 10 Appendix B . East Siberian Platform: Distribution of Oil and Gas in Selected Areas Figure B-1 Angara-Lenskya, Nepsko-Botuobin, Severa Tunguska, Bai Kit, Katangska, and Pricyno Enisey Oil and gas-bearing Severn Tunguska Angara-Lenskya Nepsko-Botuobin areas y m c ?cv a it g Y Fields and 5 e e Fields and Legend exploration z r Y a e s exploration n areas Y ? ] Y - areas c ] I- E ? ? ] '? a K d ? . ?c o c v ? 'u ] ? i > '? -? c E c m ? `] c c N b o V o c Y E ' " x V ? c E o E " C L e = .y E e y C Y C i o C y i? L y o c Y L 'L j 0 ? Era Formation Lithologic E ? 0 Y 0 c '' , , B Y x c -? I L -? o L Y = c T 0 C 0 , E ] o ~' o "/ V 2 L V Formation ? "a C - O l > ] d Y > T F? Q [- m a O m } m Y d m Y m m H N Y m u _ Z > Y Y P n, s4 Z H > C, > m F E > > 0 0 0 0 a co umn m Mid-Cambrian Litvintsev ? 0 0 N ~ Litvintsev Field ? 0 A ^ ? Early Cambrian Angara C 11 1 Angara Commercial flow . ? from single wells ? 0 A C C ? ? ? ? ? ? ? ? ? ^ ^ Show ? 0 A ^ C C ~ ~ Il l Bulay Bulay 11 11 ? ? ? ? ~ ~ Limestone Belaya ? ? ? ? ? ? ~ ? ~ ~ ~I t? BelaYa . I Dolomite ? A ? ? Clayey dolomite Use] C ~ a a a ? _ ? ? ? U ^ Usol C C . . E N O . N . . . ~ C Salt C C C 11 ? 0 ? ? I , ? Mott C ? sa a a~ ~ ~ ~ r~ ra_ ra a ~ 0 ~ 0 ? r~ ~ ~ ~ ~ ~ ? A 0 ~ r~ ~ t~ ~ ? ? Iktekh Sandstone Alternating sandstone, 0 ? siltstone, and clay -_____ Basement 0 0 ? - '? Vendian Impermeable rock 0 ? ? ? 0 0 ^ 0 ? ? ?M ? ? ? ? ? ? ? 0 0 ? ? Kharistan ONE Salt seals ? Source: Geology of Oil and Gas m the Bochugunor Siberian Plarl rm; Konunvich. Surkova. and ? ' ? ? ? 1 Verkne NEDRA 1981. Tregmuk; Moscow. ? ? ? Viloshan Riphean Ushakov A ? 25X1 Archean - Figure B-2 Vilyuy and Cis-Verkhoyansk Era Fields and exploration areas Formation ~ 9 h O [- L t O O o rn t I?' Z C N m C L Y O o u7 T T 7 n D m C T cCi 9 o T v C L Z Legend O 0 O U 0 Pools 0 0 Upper Jurassic Bergein ? Shows IS 0 Marykchan ON Nizhnevilyuy ? ? Source: GeoloKv of Oil and Gas in rh Plarlonn: Kontrovich, Surko Siberian Yakutsk - Tralmuk: Moscow,NEDRA1981. Mid-Jurassic Suntar Lower Jurassic Kyzylsyr Q0 Q 0 - 0 - ON Q Q O Q Q Q Upper Triassic Begidzhan Lower Triassic Monom Q Q Q QU Tagandzhin Q0 Q0 Q Q Q ?^ Q Q ?^ Q o Nizhnekelter Q Q ? Q0 Q Q Q^ - Q ? Upper Permian Q Q Q Q Q Q Q Q Q ?^ Q Q 0 - 5X1 To See t 25X1 Figure B-3 Yenisey-Khatanga Era Fields and exploration areas Formation .S d o c ,~, o ei ~ N Z O ~ v ~ m j N 0 U 3 O Upper Tanam ^ Cretaceous Messoyakha ? Source: Geology of Oil and Gas in the Nasonov Siberian Platform: Konirovich, Surkova, and " Trafimuk; Moscow, "NEDRA 1981. Dorozhkov Dolgan ? ?? Lower Cretaceous - Yakovlev A Malokhet O O O 0 0 Sukhodudin 0 0 0 0 0 1 0 ^ O ^ ^ ^ O ON Nizhnekhet ^ ? ? --- - --- i Mid J Yanovstanov rass u c - Sigov 0 Tochin Malyshev Leont'yev Vym ? 0 Laydin Lower Jurassic Dzhangod Levin Zimnyaya 0 Approved For Release 2008/12/05 : CIA-RDP85SO0315R000200020002-7 Top Secret