Gazprom Neft and Repsol sign Technical Cooperation Agreement

Gazprom Neft and Repsol have entered into a Technical Cooperation Agreement at this year’s St Petersburg International Economic Forum, signed by Vadim Yakovlev (First Deputy CEO, Gazprom Neft), and Luis Cabra Dueñas (Executive Managing Director of Exploration and Production, Repsol).

On the photo (from left to right): Vadim Yakovlev, First Deputy CEO, Gazprom Neft, and Luis Cabra, Upstream Executive Managing Director, Repsol

The agreement envisages cooperation in researching and developing new technologies in geological prospecting and hydrocarbon production, particularly at reserves in the Karabashsky zone in the south—west of the Khanty-Mansi Autonomous Okrug, under development by Evrotek-Yugra, a Gazprom Neft—Repsol joint venture with licenses for seven subsoil blocks in this region, in addition to a further six licenses held by Gazprom Neft.

Areas of cooperation between the Russian and Spanish company will include optimising geological prospecting operations, research into digital petrophysics utilising artificial intelligence (AI), joint developments in chemically enhanced oil recovery (EOR) techniques, and sharing experience in developing complex fields with hard-to-recover reserves.

Vadim Yakovlev, First Deputy CEO, Gazprom Neft, commented: “We continue to develop our partnership with one of Europe’s most important companies — Spain’s Repsol. Joint activities in the Khanty-Mansi Autonomous Okrug mean we can share cutting-edge digital technologies and develop new solutions for the viable and effective development of hydrocarbon reserves. I have every confidence that our companies’ collective experience will allow the smaller and under-researched reserves of the Karabashsky zone to be successfully brought into development.”


Reference

Gazprom Neft acquired a 25.02-percent interest in Evrotek-Yugra, owned by Spain’s Repsol, in June 2017. Pursuant to the Shareholders’ Agreement on this transaction, the parties are managing this joint enterprise on a parity basis, with Gapzrom Neft having the option of increasing its holding to 50 percent.

Repsol is one of the world’s leading oil and gas companies, operating in more than 37 countries and producing approximately 700,000 barrels of oil equivalent every day, with facilities for refining, transporting and selling a variety of fuels and lubricants.

Gazprom Neft is a vertically integrated oil company, primarily involved in oil and gas exploration and production, refining, and the production and sale of oil products. The Gazprom Neft’s corporate structure comprises more than 70 production, refining and sales subsidiaries throughout Russia, the CIS, and abroad.

The company’s proved and probable reserves (SPE-PRMS) are estimated at 2.78 billion tonnes of oil equivalent (btoe), making Gazprom Neft one of the top-20 largest oil and gas companies in the world, and one of Russia’s top three largest companies in terms of production and refining volumes. Total production in 2017 reached 89.75 million tonnes of oil equivalent (mtoe), with refining volumes of 40.1 million tonnes.

Gazprom Neft products are exported to more than 50 countries worldwide, and sold throughout the Russian Federation and abroad. The company’s filling station network totals more than 1,850 outlets throughout Russia, the CIS and Europe.

Gazprom Neft’s net profit in 2017 was RUB253 billion — a 26.5-percent increase year-on-year. The company is an industry market leader in terms of both financial growth and various efficiency metrics, including its internal rate of return (IRR).

The company’s main shareholder is Gazprom PJSC, which has a 95.68-percent interest, with the remaining shares in free circulation.