NEW YORK -- Genoil (GNOLF) has signed an agreement to develop five oil and gas fields in the Sakha Republic (Yakutia), Russia, with recoverable reserves of 1.8 Bbbl. The scale of the project will require $35 billion, with the first phase costing $6 billion, representing a landmark agreement for Genoil.
Genoil will provide technology and project consultancy, as well as advising on the finance and development of upstream and downstream projects in Yakutia. Genoil will act as the lead consultant on all aspects of the project which will include engineering procurement and construction (EPC), equity and debt financing, and oil field services, as well as oil field operations and natural gas development.
Under the agreement, Genoil will develop oil fields and refineries and will use its advanced Hydroconversion Upgrader (GHU) desulphurization technology, which converts heavy or sour crude oil into much more valuable, compliant low sulphur oil, for a low cost at the fraction of the cost of traditional refining processes.
The first oil field block will yield 240,000 bpd production and is directly adjoining the Khatanga block being developed by Russian state oil giant Rosneft. The estimated cost to connect this first oil block to the nearby East Siberia-Pacific Ocean (ESPO) and the Western Siberian pipeline systems is an additional $1.1 billion. The ESPO pipeline is likely to be used by many other major oil companies developing energy assets in the Arctic.
The seismic work already completed on this property shows geological reserves in this first block estimated in excess of 80 million tons (550 MMboe). and have hydrocarbon resources of approximately 800-850 million tons of oil equivalents (5.5-6.0 Bboe).