Achim Development has started the hot commissioning of Area 5A of the Urengoyskoye oil, gas and condensate field in Western Siberia. Just a few months after first gas was produced from the Achimov formations in Area 4A, both production complexes are now undergoing comprehensive testing procedures under operating conditions and delivering hydrocarbon products. The start of this process marks another significant milestone for Wintershall Dea and Gazprom in the development of the Achimov deposits.

Achim Development is the youngest joint venture of Wintershall Dea (25.01 per cent) and Gazprom (74.99 per cent). In 2018, the company set out to tackle the ambitious task of simultaneous preparation of Areas 4A and 5A for production start-up in order to develop the hard-to-recover gas and gas condensate reserves of the Achimov formations in the Urengoyskoye field. While setting up the necessary infrastructure in Areas 4A and 5A, the specialists of Achim Development applied their expertise to finding solutions to a number of complex tasks. Besides the harsh climatic conditions and the sensitive environment of the Siberian tundra, the complex geology of the Achimov formations, which lie at depths of up to 4,000 metres, and the abnormally high formation pressure posed additional challenges for the drilling operations. Furthermore, in the final months leading up to the start of commissioning of the production facilities in Area 4A/5A, Achim Development had to overcome a range of logistical limitations caused by the COVID-19 pandemic.

The hot commissioning of the start-up complex of Achim Development was successfully launched in January 2021. During the first phase of building the necessary infrastructure and facilities, Achim Development received support from Achimgaz, a 50:50 joint venture between Wintershall Dea and Gazprom Dobycha Urengoy that has been operating Area 1A of the Urengoyskoye field since 2008. While this process is still ongoing, Achim Development has also started full field development of Area 4A/5A.

“Russia is a very important core region for our company, and our projects in Russia are a central pillar in achieving our company’s strategic goals. The start of hot commissioning of both Area 4A and Area 5A is an impressive achievement and another great success in our long-standing partnership with Gazprom. I am delighted that together with our other joint ventures in Western Siberia – Severneftegazprom and Achimgaz – Achim Development will significantly contribute to our production for many years to come,” says Thilo Wieland, Member of the Board of Wintershall Dea GmbH responsible for Russia.

After the completion of hot commissioning, Achim Development will proceed to ramp up its production volumes towards full project capacity. This will constitute a substantial increase in Wintershall Dea’s production in Russia. The total planned production capacity in Area 4A/5A is 14 billion cubic metres of dry gas annually.

Located in Western Siberia, Area 4A/5A is the northernmost project in Wintershall Dea’s portfolio in Russia. Paying close attention to the specific local challenges of the project, Achim Development operates under the highest environmental and social standards.

About Wintershall

Wintershall Holding GmbH, based in Kassel, Germany, is a wholly-owned subsidiary of BASF in Ludwigshafen. The company has been active in the extraction of natural resources for 125 years, and in the exploration and production of crude oil and natural gas for over 85 years. Wintershall focuses on selected core regions where the company has built up a high level of regional and technological expertise. These are Europe, Russia, North Africa, South America, and increasingly the Middle East region. The company wants to expand its business further with exploration and production, selected partnerships, innovation and technological competence. Wintershall employs about 2.000 staff worldwide from 50 nations and is now Germany’s largest, internationally active crude oil and natural gas producer.

At the end of September 2018, BASF and LetterOne signed a binding agreement to merge their respective oil and gas companies, Wintershall and DEA (Deutsche Erdöl AG). Subject to regulatory approvals, the transaction is expected to close in the first half of 2019. Wintershall DEA would become the leading independent oil and gas producer in Europe. BASF and LetterOne are planning an initial public offering (IPO) for Wintershall DEA in the medium term.

About Gazprom

Gazprom is a global energy company focused on geological exploration, production, transportation, storage, processing and sales of gas, gas condensate and oil, sales of gas as a vehicle fuel, as well as generation and marketing of heat and electric power.
Gazprom is a reliable supplier of gas to Russian and foreign consumers. The Company owns the world’s largest gas transmission system, the total length of which within the boundaries of Russia reaches 175.2 thousand kilometers. Gazprom sells more than half of its gas to Russian consumers and exports gas to over 30 countries within and beyond the former Soviet Union.

About Achim Development

Achim Development LLC was established to implement a project for the construction and development of blocks 4A and 5A of the Achimov deposits of the Urengoy oil, gas and gas condensate field. The main type of production activity of the company is the production of natural gas and unstable gas condensate.

In 2015, Gazprom and BASF/Wintershall completed an asset swap deal. As a result of the transaction, Wintershall received 25.01% in the project for the construction and development of blocks 4A and 5A of the Achimov deposits of the Urengoy field.