The joint venture will explore and develop the Leskinsky and Pukhutsyayakhsky licence blocks
Gazprom Neft and Shell form JV to develop hydrocarbon cluster. (Credit: Gazprom Neft PJSC.)
Russian oil producer Gazprom Neft and Royal Dutch Shell have agreed to launch a joint venture (JV) for the development of a major hydrocarbon cluster on the Gydan peninsula.
The JV will combine the capabilities and competences of the two companies to explore and develop the Leskinsky and Pukhutsyayakhsky licence blocks.
Located in the Taymyr district of the Krasnoyarsk Krai, the Leskinsky licence block covers an area of more than 3,000km² and its hydrocarbon resources are expected to be around 100 million tonnes of oil equivalent.
Spanning an area of more than 800km², the Pukhutsyayakhsky block is situated in the Tazovsky district of the Yamal-Nenets Autonomous Okrug. It is expected to contain approximately 35 million tonnes of oil equivalent.
The 2D seismic survey has already been completed on both the blocks while the first prospecting well is estimated to be drilled in the Leskinsky area by the end of this year.
Gazprom Neft said that the data that is obtained from the well will be used to refine the geological concept and prepare a future project development plan.
Gazprom Neft and Shell will have an equal interest in the capital of the JV
Gazprom Neft Exploration and Production deputy CEO Vadim Yakovlev said: “Exploration of the Gydan blocks is among Gazprom Neft’s strategic objectives, so changes in the market conditions have not affected our plans.
“In case of geological success, a new large hydrocarbon province will appear on the peninsula.
“It is also important for us that we continue the project together with our longstanding partner Shell, with whom we will combine experience and technological expertise to study Gydan and prepare for the development of these new territories.”
Subject to the receipt of necessary corporate and regulatory approvals, the deal is planned to be concluded this year.
Upon completion of the transaction, the companies will have an equal interest in the capital of the joint venture.
In February this year, Gazprom Neft and Mubadala Petroleum agreed to work together in developing new technologies.