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Bortovoy History

1999 Bortovoy Licence was won in a government auction by Diall Alliance (Zoltav’s operating Subsidiary)
2003 Diall Alliance began commercial production of oil and condensate
2007 Due to rising demand for gas in Russia, Diall Alliance shifted its focus from oil production to Gas development and production; and acquired a gas processing plant
2008 Oil and condensate production was suspended while the facilities to produce gas were established
2011 Diall Alliance began commercial production of gas and condensate from the Western Fields and also recommenced the production and sale of oil
2014 Zoltav acquired Diall Alliance and restored the Western Gas Plant to its full production capacity
2015 Zoltav's operations at the Western Gas Plant turned profitable

The area covered by the Bortovoy Licence was owned during Soviet times by the Russian Government and extensive geological exploration work aimed at finding large deposits of hydrocarbons was conducted across the entire region starting in the 1930s.

The acreage that now forms the Bortovoy Licence was won in a government auction by Diall Alliance (Zoltav’s operating subsidiary) in 1999. Diall Alliance proceeded with the exploration and production of oil and condensate with commercial production commencing in 2003.

By 2006, the Bortovoy Licence had more than 130 wells which had been drilled over the past 40 years and more than 1,000 km of 2D seismic geophysical data.

In mid-2007, in addition to obtaining encouraging results from well re-entries and the re-processing and interpretation of seismic data, the operator conducted a trial production of oil at three Western Fields (Karpenskoye, Zhdanovskoye and Mokrousovskoye) in order to ascertain the long-term productivity of the existing wells. During this trial period, the operator was able to achieve average liquid production rates of over 300 bbls (42 T) a day. In conjunction with this oil and condensate production, however, a significant quantity of the associated gas was flared, as the operator did not have the necessary facilities to process this gas for transportation and sale at that time.

The increasing demand in Russia for gas, together with the Russian Government’s stated commitment to liberalising industrial gas prices, which resulted in a continued increase in Russian domestic gas prices, led the operator to shift its focus from oil production to gas development and production.

A gas processing plant was acquired in 2007 and subsequently refurbished, re-engineered and re-assembled on the Karpenskoye field. In mid-2008, the operator decided to suspend oil and condensate production in order to avoid flaring the gas while it established the necessary facilities and infrastructure to produce the gas on a commercial basis.

Start-up of the Western Plant commenced in November 2010 and, following an initial period of trial production and sales, Diall Alliance began producing gas and condensate commercially from the Western Fields in January 2011 and also recommenced the production and sale of oil in May 2011.

In 2014, following its acquisition of Diall Alliance, Zoltav restored the Western Plant to its full production capacity where it continues to produce around 9,000 barrels (1,280 tonnes) of oil equivalent per day.

In 2015, operations at the Western Gas Plant turned profitable.