• Natural Gas News

    Gazprom Neft, Lukoil in Yamal-Nenets JV

Summary

The companies teamed up to explore parts of the far north of Russia.

by: Daniel Graeber

Posted in:

Complimentary, Natural Gas & LNG News, Asia/Oceania, Corporate, Companies, Europe, Lukoil, News By Country, Russia

Gazprom Neft, Lukoil in Yamal-Nenets JV

Russian energy companies Lukoil and Gazprom Neft said December 28 they formed a joint venture to develop oil and natural gas in the Yamal-Nenets autonomous district.

A $706mn transaction creates a joint venture to develop the Nadym-Pur-Tazovsky area in Russia’s far north. The companies said the regional reserves are estimated in the range of 500bn m3 of natural gas.

The companies said the Tazovskoye oil and gas condensate field will be the main focal point for new production. The Severo-Samburgskoye and Meretoyakhinskoye fields, as well as two Zapadno-Yubileiny license blocks, are other targets

Gazprom Neft earlier this month requested that auctions be held on special terms for three oil and gas fields on the Yamal Peninsula in the Russian Arctic.

The fields in question – Nurminskoye, Rostovtsevskoye and Sredneyamalskoye – currently form part of Russia's strategic reserve, designed to retain some oil and gas resources for development in the future.

Gazprom Neft needs the fields to boost capacity utilisation along a pipeline the company has recently built to pump associated gas from the Novoportovskoye oilfield on Yamal to Russia's national gas transport system. Completed in October, the pipeline's capacity is 20bn m3/year, but is due to handle only around 7.3bn m3/yr of gas initially.

Gazprom Neft has traditionally focused on oil development, but has shifted its attention to natural gas in recent years, encouraged by the demand outlook for the fuel.