Gazprom Neft and Shell sign memorandum of Understanding on the joint implementation of oil and gas projects
Gazprom Neft and Shell have used the occasion of this year’s St Petersburg International Economic Forum to sign a Memorandum of Understanding. Vadim Yakovlev, First Deputy CEO, Gazprom Neft, and Olivier Lazar, Country Chair, Shell Russia, have both put their signatures to a document confirming both companies’ intention of promoting further cooperation.
Both sides have confirmed their intention of continuing negotiations on the Khanty-Mansiysky Oil and Gas Union’s provisional assessment of a range of non-shale oil deposits in Eastern Siberia, including the Achimovsky deposits in the Yamalo-Nenets Autonomous Okrug. In addition to this, Gazprom Neft and Shell have committed to undertake geological prospecting of license blocks in the Khanty-Mansiysk Autonomous Okrug, adjoining licence blocks owned by Salym Petroleum Development N.V.,* through that enterprise.
Vadim Yakovlev, First Deputy CEO, Gazprom Neft, commented: “Gazprom Neft and Shell have many years’ experience of successful collaboration on practically all areas of the business. Our joint enterprises are not only successfully undertaking production activities in one of the most important regions for Gazprom Neft — the Khanty-Mansiysk Autonomous Okrug — but have also taken on the role of leading the industry in technology, implementing cutting-edge strategies for improving oil recovery, and playing an active role in finding effective methods of working with hard-to-recover reserves. The Memorandum of Understanding signed today confirms our wider interest in further development, together.”
* Gazprom Neft and Shell are participating on a parity basis in two upstream joint ventures — Salym Petroleum Development and the Khanty-Mansiysk Oil and Gas Union. Salym Petroleum Development has been developing the Salym group of oil fields (with total recoverable reserves of 140 million tonnes) in the Khanty-Mansiysk Autonomous Okrug since 2003. Based within Salym Petroleum Development, work is currently underway on a pilot enhanced oil recovery (EOR) project unique to Russia involving the injection of a three-component mixture into the reservoir, allowing the production of a up to 30 percent more from the subsoil. The Khanty-Mansiysk Oil and Gas Union, established in 2013, is involved in the geological prospecting and evaluation of non-shale oilfields in Western Siberia. In addition to these projects, Gazprom Neft and Shell also work together in supplying marine (bunkering) fuel.
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