MOSCOW, Aug. 27 (UPI) -- A duo of Russian energy companies said Tuesday their joint venture expects to produce more than 2 million barrels of oil from northern Russia by year's end.
Lukoil and Bashneft, through their joint venture Bashneft-Polus, announced Tuesday they started oil production at the Trebs and Titov fields in the northern Nenets autonomous district. They said test production is under way and the complex is expected to reach 2.2 million barrels by the end of the year.
The companies described the development as a pilot program started in 2011. The development project included 12 exploratory wells and the construction of 75 miles with of gathering and power transmission lines.
The joint venture said it was preparing for commercial production from the Trebs and Titov fields by 2016, expecting annual production to level off around 35 million barrels by 2020.
Bashneft-Polus said it had invested $6.1 million in field development as of June 2013. The joint venture said the field would help spur exports from a terminal on the shores of the northern region.