Page 18 - FSUOGM Week 47

FSUOGM PROJECTS & COMPANIES FSUOGM

Gazprom Neft approves partnership

with Shell at Arctic project

RUSSIA THE board of directors at Russia’s Gazprom a number of other greenfield and brownfield
Neft has approved the transfer of a share in a key projects.
The pair are set to Arctic exploration project to long-time partner Shell had been lined up to partner with Gaz-
jointly explore two Royal Dutch Shell. prom Neft at the Meretoyakhinskoye oilfield in
blocks on the Gydan Gazprom Neft is set to transfer a 50% share Western Siberia, but opted out of the project in
Peninsula. of its subsidiary Gazpromneft-Aero Bryansk to April.
Shell, the Russian company said last week. Gaz- Gazprom Neft is looking to “optimise” its
promneft-Aero Bryansk holds licences for the capital expenditure this year by 20%, the com-
Leskinsky and Pukhutsyayakhsky blocks on the pany’s deputy CEO for finance Alexei Yankevich
Gydan Peninsula. told analysts after the release of third-quarter
Leskinsky, situated in the Yamalo-Nen- results last week. The company intends to limit
ets region, is estimated to hold around 100mn its future investment spend by making a “more
tonnes (733mn barrels) of oil equivalent, active research” for partners to share financial
whereas Pukhutsyayakhsky to thought to con- risks at new projects, he said.
tain 35mn tonnes (257mn barrels). Gazprom Neft’s capital spending in the first
The pair agreed to form a 50:50 joint venture half of the year was up by more than 20% year
for studying and developing the blocks in July, on year at RUB227bn ($3bn). But it is target-
with Gazprom Neft expressing hope at the time ing a full-year spend of only RUB362bn, versus
that the deal could be closed by year-end. A dis- RUB453bn in 2019.
covery at either block could open up a new oil “A company that is increasing capital invest-
and gas province, Gazprom Neft has said. ments in the current market looks a little
The sale will also require approval from Shell’s strange,” Yankevich said, noting that the bump
board, which is yet to be confirmed, as well as in spending in the first half was the result of deci-
approval from Russian regulators. sions taken last year, before the sudden market
Shell is Gazprom Neft’s top foreign invest- collapse.
ment partner. Their main joint venture Gazprom Neft has already attracted partners
is Salym Petroleum Development (SPD), for new projects this year, but the scale of the
which is exploiting several large oilfields in deals has been small. In August it formed a joint
Western Siberia. Gazprom Neft is eager to venture with Russia’s Zarubezhneft to explore
strengthen ties with Shell further, having two areas in the Salym region of Western Serbia
asked the Anglo-Dutch major to team up at for hard-to-recover oil. ™

P18 www. NEWSBASE .com Week 47 25•November•2020