Cub Energy’s partially owned subsidiary, KUB-Gas, completed the construction and commissioning of its new Makeevskoye gas processing facility. The new facility supplements existing infrastructure, and increases KUB-Gas’ overall processing capacity from 30MMcfd to 68MMcfd. The company anticipates that gross daily production rates from existing wells previously constrained by facility limitations will increase by 5MMcfd or more, with further increases expected from the on-going drilling program.
The existing facilities in Makeevskoye were insufficient to handle the increasing production resulting from KUB-Gas’ recent exploration and development success. By diverting some of the newer wells in Makeevskoye to the new plant, the company anticipates benefits at both the Makeevskoye and Olgovskoye fields. As system back-pressures are reduced, existing wells should flow more freely.
Construction of the new Makeevskoye processing facility began in September 2013 and completed in December 2013. The completion of the new facility was followed by a testing and commissioning period after which final operating approvals were received. Gas began flowing through the new facility in March and KUB-Gas intends to slowly increase the throughput rate in the new plant. The facilities were constructed and delivered on time and on budget at a cost of USD 7.8M.