Page 16 - FSUOGM Week 27

FSUOGM PROJECTS & COMPANIES FSUOGM

Gazprom Neft, Zarubezhneft target hard-

to-recover oil in Western Siberia

RUSSIA RUSSIAN producers are combining their exper- Gazprom Neft’s expertise in developing
tise to develop hard-to-recover oil, which is hard-to-recover reserves has seen an “exponen-
The pair aim to start expected to account for an increasing share of tial increase” in recent years, Yakovlev said. This
commercial production the country’s output over the coming decades. means the company is now “in a position to pre-
as early as 2025. In a statement on July 2, Gazprom Neft pare for developing deposits that, just a few years
said it had reached a binding agreement with ago, would have been deemed unprofitable.”
Zarubezhneft on exploration and production Teaming up with Zarubezhneft will allow
of hard-to-recover crude in Russia’s oil heart- Gazprom Neft to develop the Salymsky blocks
land of Khanty-Mansiysk. The pair will together faster, he said.
develop technologies for the project. Meanwhile, Zarubezhneft noted that hon-
The companies will focus on the Salysmky-3 ing its technologies and expertise domestically
and Salymsky-5 licence blocks, with the goal of would help the company expand its interna-
starting up commercial production as early as tional business.
2025. A deal on the partnership is anticipated to Gazprom Neft in late June also formed a part-
be closed in either July or August, giving Gaz- nership with Lukoil and Tatneft to develop hard-
prom Neft a 51% stake in a joint venture, with to-recover reserves in Russia’s Orenburg region
Zarubezhneft assuming 49%. bordering Kazakhstan.
“It’s quite clear that the future development Many Russian producers are contending
of the oil and gas industry largely depends with output decline at their projects in Russia’s
on developing ‘hard-to-recover’ oil reserves, older Volga-Urals and Western Siberia basins.
which are going to have an ever-increasing role To maintain production rates, not only are com-
in production,” Gazprom Neft’s deputy CEO panies pushing into new regions like the Arctic
for upstream activities, Vadim Yakovlev, said and Eastern Siberia, but they are also exploiting
in a statement. “Non-traditional hydrocarbon hard-to-recover resources at existing deposits.
reserves are colossal – but not readily accessible Gazprom Neft is also targeting unconventional
in terms of full-scale development.” reserves in the Bazhenov shale oil formation. ™

Gazprom refunds $1.5bn to Poland’s

PGNiG after settling price dispute

RUSSIA RUSSIAN state gas giant Gazprom has after signing an annex to the Yamal contract,
refunded $1.5bn to Poland’s state-run gas com- which specifies the pricing formula and com-
The award relates to pany PGNiG for overpayments of gas supplied pensation for past overpayments.
overpriced supplies between 2014 and 2020, following a ruling by Polish President Andrzej Duda hailed the
since 2014. an international arbitration court in the spring, news, saying it was “a result of an effective pol-
officials have said. icy” pursued by authorities “when it comes to the
The money has been transferred to the bank diversification of gas supplies.”
account of the company, CEO Jerzy Kwiecinski The $1.5bn repayment is for gas supplied to
announced on July 1. Poland after November 1, 2014, when the pricing
The Arbitration Institute of the Stockholm dispute erupted between the parties.
Chamber of Commerce ruled in late March that Poland and Russia’s long-term gas supply
Gazprom had been overcharging PGNiG for gas, deal is also due to run out at the end of 2022,
following a five-year legal dispute between the and Warsaw has said it does not want to buy
pair. Gazprom was ordered to adjust the pricing more Russian gas after this point. Poland is
formula in its long-term supply agreement with developing additional import infrastructure
PGNiG, known as the Yamal contract, to reflect to achieve this, including a pipeline from Nor-
market prices in Europe. way and an expansion in its LNG regasification
The parties settled the dispute last month capacity. ™

P16 www. NEWSBASE .com Week 27 08•July•2020