The race for West Siberia’s last giant greenfield heats up
After multiple delays, Russia will auction the giant Erginskoye field on 12 July 2017. Past auctions show that the price can increase rapidly and competition is fierce. Rosneft is in pole position following the recent acquisition of Kondaneft, but Gazpromneft is a top contender. The unique auction conditions favour large vertically-integrated oil companies, meaning the other participants are rank outsiders. IOCs are not allowed to take part. With Russian oil companies focusing on their low-cost West Siberia asset base, Erginskoye is an attractive greenfield. The field lies next to the super-giant Priobskoye field, which will allow for infrastructure synergies. Production could peak at up to 140,000 b/d. Production from Erginskoye would allow Rosneft to utilise spare refinery capacity. But Gazpromneft would also benefit from the field to maintain production at its mature brownfield assets.