Gazprom Neft signs Memorandum of Understanding on investments in oil and gas technologies with two major private venture funds

Gazprom Neft has signed a Memorandum of Understanding (MOU) with Phystech Ventures and North Energy Ventures, venture capital firms managing several funds and investing consistently in the development of hydrocarbon production technologies in Russia. The purpose of the signed document is to formalise existing cooperation in monetising high-tech projects in Russia and abroad. Gazprom Neft and the two venture capital firms intend to share information on start-ups created in the oil and gas industry, engage in monitoring and expert analysis of new technologies, discuss new and potential market needs, and develop various joint projects.

Gazprom Neft, Phystech Ventures and North Energy Ventures’ plan for cooperation includes engaging with the funds’ portfolio companies. In particular, the parties have confirmed their interest in the development of radial drilling technologies, multi-hole completion technologies, software development and more. Pursuant to the signed document, Gazprom Neft is expected to be involved in the final stage of research and development, and in the subsequent development of companies creating such technologies.

Igor Rustamov, Head of Drilling and Well Work, Gazprom Neft, commented: “Today, the challenges of improving drilling efficiency, improving the quality of engineering solutions, increasing efficiency in developing hard-to-recover reserves, and in intensifying inflows in traditional oil-producing regions, are becoming top priorities for Russia’s oil and gas industry. These challenges require advanced solutions adapted to the Russian market, as well as know-how not available anywhere else in the world. I am confident that our joint initiative with leading venture capital funds will not only prove to be an important element in Gazprom Neft’s technological development strategy, but will also prove a significant contribution in developing the eco-system for technological start-ups in Russia’s oil and gas sector”.