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Project implementation
Each well pad consists of 5 clusters of 4 wells. Average drilling depth of vertical wells is 2,300 m, deviated wells — 2,700 m
Each well pad consists of 5 clusters of 4 wells. Average drilling depth of vertical wells is 2,300 m, deviated wells — 2,700 m 

Following SPD shareholders' decision to proceed with the Salym fields under the tax/royalty regime, the Salym Project has progressed at a rapid pace. Currently SPD is one of the most dynamic energy companies operating in Western Siberia. From an organization with 15 staff in early 2003, SPD has grown to a large company with offices in Moscow, Nefteyugansk and Khanty Mansiysk. Currently, about 850 Russian and foreign specialists work in SPD. Also, more than 2,500 contractors' employees work on the Salym Project sites.

The SPD team in cooperation with its contractors, mostly Russian companies, carried out a challenging scope of work on constructing surface facilities and preparing the fields for commercial development. This relates first of all to West Salym, which is the largest field in the Salym group.

West Salym field was discovered in 1987. The license area is 755.6 km2. The recoverable Ñ1+Ñ2 category oil reserves approved by the Russian Federation State Committee on Reserves (GKZ) amount to 113.3 mln tonnes. This is the first field development.

The 88 km long West Salym to Yuzhny Balyk pipeline will transport oil to the Transneft main trunk pipeline system
The 88 km long West Salym to Yuzhny Balyk pipeline will transport oil to the Transneft main trunk pipeline system 

Starting from autumn of 2003 the following basic field production infrastructure facilities have been constructed:

* A 50-kilometer all-weather road (ComCor)
* 5 river crossings
* Power line and transformer substations
* Well pads
* Production storage tanks
* Warehouses
* Field camps
* Helipad

West Salym 2005 priority objectives were as follows:

* Complete construction and commission of Central Processing Facility (CPF);
* Complete construction and commission of oil export pipeline, infield pipelines.

According to its license commitments, SPD was to ensure production of crude oil from West Salym in the range of 100 thousand tonnes in 2005.

In August 2005, SPD completed construction of 88 km-long oil export pipeline from West Salym to Yuzhny Balyk. Three months later the Company brought West Salym on stream. In December 2005, SPD produced  the 100,000-th tonne of oil from West Salym.

In April 2006, SPD Supervisory Board decided to build a 45 MW Gas Turbine Plant at West Salym to generate electricity by utilising associated gas. This project was completed in December 2007.

Along with oil production from the early wells and facilities construction in the West Salym field SPD continues development of the Upper Salym field.

Upper Salym field was discovered in 1966. The license area is 952.3 km2. The recoverable Ñ1+Ñ2 category oil reserves approved by the Russian Federation State Committee on Reserves (GKZ) amount to 21.3 mln tonnes. In 1994-1998 Shell Salym Development B.V. and OAO NK Evikhon carried out test production from 5 wells in the Upper Salym East.

During 2001 through 2003, 6 development wells were drilled in the Upper Salym West and ComCor road was built to reach the Upper Salym East. In the autumn of 2004 drilling operations started on a new well pad.

In 2004, an exploration well was drilled to the depth of 2,316 meters in Upper Salym and indicated an oil-bearing sand
In 2004, an exploration well was drilled to the depth of 2,316 meters in Upper Salym and indicated an oil-bearing sand 

In 2005 preparations started to bring into development the Vadelyp Field.

In June 2006, SPD started drilling first development well in Vadelyp, and in October 2006, SPD brought Vadelyp on stream.

Vadelyp field was discovered in 1989. The license area is 433.5 km2. The recoverable Ñ1+Ñ2 category oil reserves approved by the Russian Federation State Committee on Reserves (GKZ) amount to 18 mln tonnes. The field is undeveloped.

In 2005, $12.3 mln was allocated to finance engineering surveys, seismic studies, elaboration of the feasibility study and other preparatory operations.

The field development processes are going on hand in hand with the Upper Salym and West Salym fields' development. Specifically, the CPF and the oil export pipeline, in West Salym, are used for oil processing and export.

Oil is produced to surface using electrical submersible pumps (ESP)
Oil is produced to surface using electrical submersible pumps (ESP) 

Considering that all three fields ñame on stream using shared infrastructure facilities, their development was viewed as a single integrated project. The single development strategy was optimized based on the results of exploratory and development drilling as well as seismic data. Appraisal projects have been developed and approved for all three fields.

SPD continues to increase the development pace, ensuring compliance with the Russian environmental protection regulations; SPD Health, Safety and Environmental (HSE) standards; and, with due regard to the needs of the indigenous people in the area of operations.

The CPF is designed to collect and process 6 mln tonnes of crude oil per year with an option to expand capacity to 9 mln tonnes per year
The CPF is designed to collect and process 6 mln tonnes of crude oil per year with an option to expand capacity to 9 mln tonnes per year 
The development of the Salym fields has a positive influence on the economic development of the Salym village and the region by creating new work places for local residents with proper skills and opening new possibilities for local businesses. Many regional companies, firms and organizations are engaged as contractors or subcontractors in the construction of field facilities, rendering transportation, and other services.

Federal and regional budgets have already been receiving tens of millions of dollars in taxes and fees paid by SPD and its contractors. Following the increase in the production and sales of Salym oil the tax revenues will also increase, which will further benefit the local community and the Russian economy as a whole.
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