Bashneft-Polus, a joint venture of OAO Lukoil and OAO ANK Bashneft, began oil production as part of the development of R. Trebs and A. Titov fields in the Nenets Autonomous District onshore Russia, Lukoil said in a press release. Test production is under way and is expected to reach about 300,000 tons of oil by year-end 2013.

In preparation for pilot production in 2011 to 2013, Bashneft-Polus, being the operator under the Trebs and Titov development project, constructed field facilities and connected 12 exploratory wells at the R. Trebs field to the utility network, according to the press release. It has constructed more than 40 km (25 miles) of gathering lines and approximately 80 km (50 miles) of power transmission lines and completed the first stage of a central gathering plant (CGP) with a capacity of 1.5 million tons per year, an oil delivery and acceptance station (ODAS) with an oil metering station, a more than 31-km (19-mile) long pressure oil pipeline from the Trebs CGP to the Varandey ODAS, and also numerous auxiliary facilities.

The oil produced at the R. Trebs field is supplied via a pipeline to the Varandey ODAS and further on to the Varandey oil export terminal, according to the press release. As required by the license agreement, a volume of oil equivalent to 42% of the crude produced will be supplied to Bashneft’s refineries in Ufa for refining.

Bashneft-Polus, being the project operator, is currently continuing with its exploration program to revise the geology and the hydrocarbon reserves of the Trebs and Titov fields. Specifically, within the license block in 2011 to 2013, it reactivated 12, drilled and tested another three exploratory wells, is currently drilling two more exploratory wells, and has completed 1,350 sq km (521 sq miles) of 3-D seismic surveys, according to the press release.

Bashneft-Polus also is preparing for commercial operation of the Trebs and Titov fields. In May 2013 it commenced development drilling on three well pads at the Trebs and two well pads at the Titov, where a total of 16 producers are expected to be drilled. The first commercial production at the Trebs and Titov fields is scheduled for 2016. By 2020 the annual oil production under the project is expected to reach a sustainable 4.8 million tons, according to the press release.

As of June 30, 2013, the overall investment in the Trebs and Titov development project totaled US $617 million (net of the one-off license payment of $560 million). The total project cost is estimated at $5.4 billion.