Gazprom Neft and Rosgeo sign collaboration agreement

Press-release

Gazprom Neft CEO Alexander Dyukov and Rosgeo General Director Roman Panov have signed a collaboration agreement. Sergei Donskoi, Minister of Natural Resources and the Environment, was also in attendance at the signing ceremony, held during the 21st World Petroleum Congress in Moscow. The terms of the agreement allow both parties to further extend their long-term cooperation in research into subsoil resources, and also in the use of innovative technologies in hydrocarbon production, particularly regarding the recovery of “tight” (hard-to-recover) reserves. Both companies have made clear their interest in undertaking a long-planned geological study of the continental shelf and the use of those new technologies necessary for the exploitation of unconventional reserves, including shale oil.

Photo (left to right): Rosgeo General Director Roman Panov; Russian Minister of Natural Resources and the Environment Sergei Donskoi; Gazprom Neft CEO Alexander Dyukov.

The two companies are set to establish a joint working group to manage activities going forward, under which Gazprom Neft and Rosgeo will share information on the development of new techniques in the prospecting and the development of hydrocarbons, on regional geological structures, and on the results of geo-ecological monitoring. The two companies also plan to investigate other areas of mutual interest, including proposals to improve the regulatory and legal framework governing the use of subsoil resources.

Gazprom Neft is actively involved in the development of unconventional and hard-to-recover (“tight”) reserves. The company’s adoption of new technologies has made possible the recovery of an additional 22 million tonnes of tight reserves as at end-2013 — a figure expected to reach 300 million by 2020. The company is also implementing four projects on the exploration (and subsequent commissioning) of shale oil deposits in the Bazhenov formation (Khanty-Mansi Autonomous Area). Exploration on the Russian Arctic Shelf is a further strategic objective for the company, which is operator on the Prirazlomnoye field (from which the world’s first Arctic-Shelf oil was produced last year), and is currently conducting geological studies of the Dolginskoye field (Pechora Sea) and the Severo-Vrangelevskoye field (covering the East Siberian and Chukchi seas).

Gazprom Neft CEO Alexander Dyukov commented: “Our partners at Rosgeo have unique skills and experience in those regions of strategic importance to Gazprom Neft. These include the north of the Yamalo-Nenets Autonomous Region, East Siberia, and the Arctic seas. Close collaboration between our two companies will facilitate the acquisition of substantial geological data, allowing the development of new fields and ensuring long-term, viable growth.”