Russian oil company Lukoil has started commercial production from Vladimir Filanovsky field in the Caspian Sea.

The production was inaugurated by Russian President Vladimir Putin.

Lukoil discovered this oilfield in 2005, which is the largest oil discovery in Russia in the last 25 years. 

Vladimir Filanovsky is also the second field commissioned by the company in the Russian offshore sector at the Caspian Sea.

Its ?1+?2 recoverable reserves are estimated to have 129 million tonnes of crude oil and 30 billion cubic metres of gas. It is expected to produce six million tonnes of oil per annum.

"Vladimir Filanovsky field is the largest oil discovery in Russia in the last 25 years."

Lukoil has drilled two horizontal production wells to date that delivers a daily flow-rate of more than 6,000t of oil.

Construction of a third well is currently underway.

Crude oil lifted from these wells gets transported through a subsea pipeline to the onshore storage facilities and finally gets delivered into the Caspian Pipeline Consortium system for further exports.

Procured petroleum gas is transported to the gas processing unit in Stavrolen plant for refining and conversion into petrochemical products. Finally, it is supplied to the firm's own power generating capacities and Gazprom’s Unified Gas Supply System.

The first stage of field development saw building of facilities, including the ice-resistant stationary platform-1 (ISP-1), the living quarters platform-1 (LQP-1), the central treatment platform (CTP), the riser unit, onshore storage, as well as subsea and onshore oil and gas pipeline system with a length of more than 650km.

Domestic shipyards of the Astrakhan region have been involved in development of the facilities.

Lukoil has invested approximately RUR150bn ($2.37bn) to date in construction of the facilities, development of the field, the transportation infrastructure, the processing of gas, petrochemicals and power generation.

In order to completely involve field’s reserves into production and achieve maximum duration of the plateau, the second stage of the field development is underway, including construction of the ice-resistant stationary platform-2 (ISP-2) and the living quarters platform-2 (LQP-2).

V Filanovsky field infrastructure is the key aspect of the Caspian Sea hydrocarbon resource development, enabling significant synergies for new and already producing fields.

This infrastructure is being used for transportation of hydrocarbons produced at the Yuri Korchagin field, commissioned in 2010, which leads to reduce transportation costs and offer extra margin from gas sales and supply to Lukoil's power generating facilities and petrochemical plant.

During execution of its Caspian projects, the firm has established an advanced HSE complex to help protect the aquatic bio-resources and the area's ecosystem in general.