Oil and gas deposit Yuzhnoe Khilchuyu/ Южное Хыльчую: international cooperation experience

Initial item condition

Yuzhnoe Khilchuyu /Южное Хыльчую deposit relates to Timano-Pechorskaya oil and gas province located in the Republic of Komi and the Nenets Autonomous Area. This location is considered to be the largest resource base of crude hydrocarbons in the northern and western Russia with its total area of about 600,000 м2. More than half of oil reserves in the province can be classified as hard-to-recover as they have high glueyness and scrape in their composition. That is why their production requires application of complex and expensive technologies and equipment. The development of the deposit was performed under a joint project of Lukoil/ Лукойл and ConocoPhillips.
The works were divided into two stages:

  1. Setting-up the first commissioning and start-up complex aimed at the initial field facilities construction and pumping over up to 3.8 million metric tons of first-rate oil per year to “Varandey”/ «Варандей» terminal. For the first complex, it was planned to build the following: the objects of installation of the well clusters and CPF sites, oil pipeline, terminal facilities of “Varandey” / «Варандей» tank farm. Moreover, in order to launch the own energy center and procurement reverse gas pipeline, it was necessary to carry out the construction of the Yareyu/ Ярею gas deposit.
  2. Setting-up the second commissioning and start-up complex aimed at full-scope production in industrial-scale volumes up to 7.2 million metric tons per year. For this purpose, the construction of additional objects was required for the well clusters and CPF sites, and berthing facilities needed for mooring of transport equipment and loading of oil.

Expert team of LMP Project Group joined the project on the part of the general contractor OJSC “Stroytransgaz” /ОАО «Стройтрансгаз» at the stage of the construction of the first commissioning and start-up complex.

The general contractor needed the development and adjustment of the integrated project management system in order to coordinate the activities of 15 sub-contractors. It was also necessary to optimize the resource usage. Moreover, it was important to find a convenient way of interaction with foreign partners.

Participation of LMP Project Group team in the project

Within the scope of OJSC “Stroytransgaz”/ ОАО «Стройтрансгаз» project management, a common information system in terms of project management was developed with regard to the American partners’ requirements. It included planning, control and reporting sub-systems.
The system was implemented based on Oracle Primavera software in both Russian and English.
Planning and control multilevel sub-system was set up, which was integrated with the sub-system of issuing weekly and daily tasks for 15 sub-contractors.
Special methods of making charts with different levels were developed to ensure efficient work process under the conditions of missing design documents.
A service was prepared for direct downloading of project reports from multilevel charts designed for different management levels, including the general contractor, customer, and foreign partners.
Monthly assessment KPI was performed in order to improve the decision-taking process.


the customer accepted the developed project reporting and planning systems without entering any changes;
the common information system in terms of project management was the basis of the international cooperation in terms of project management;
accurate coordination of 15 construction sub-contractors was provided in real time, and cooperation prospective was made so as to be clear to every participant;
the system of timely equipment and materials supplies was adjusted on the part of the general contractor;
the possibility of multi-parameter project analysis based on KPI was given in order to provide the management with the fullest information possible regarding the construction process and prompt taking the corrective managerial decisions.
a structured project reporting system was build up, which met the requirements of different management levels.

The participation of LMP Project Group in the construction process helped increase the profitability of the project for the general contractor by 34 %. Efficient work coordination also resulted in the optimizing the project resources and meeting the project deadlines, which were initially approved in the schedule.

Have questions? Contact us!

* - Fields marked with (*) are required