Gazprom and LUKOIL to form a joint venture in West Serbia
The Company is interested in increasing its investment both into upstream and downstream projects in our country
On 16th September, Gazprom Neft, the third largest oil producer and refiner in Russia, announced that it has agreed to establish a new joint-venture with LUKOIL in the Yamalo-Nenets Autonomous Okrug’s Nadym-Pur-Tazovsky district to develop a major oil and gas cluster. The agreement was signed by Alexander Dyukov, the CEO of Gazprom Neft PJSC, and Vagit Alekperov, President and CEO - PJSC LUKOIL, in the presence of Alexey Miller, Chairman of the Management Committee, Gazprom PJSC.
Gazprom will participate in the joint-venture through its subsidiary Meretoyakhaneftegaz, as the new production cluster being centred around the Tazovskoye oil and gas condensate field, brought into production by Gazprom Neft in June this year. Development of the Severo-Samburgskoye and Meretoyakhinskoye fields, as well as two Zapadno-Yubileiny license blocks is also part of the joint-venture’s activities. Initial estimate of the total reserves at the new cluster is of more than one billion tonnes of oil and around 500 billion cubic metres of gas.
Alexey Miller, Chairman of the Management Committee, Gazprom PJSC said, “Our job is to bring hydrocarbon reserves — with complex geology in the Polar Circle — into development effectively. Our two companies joining forces will mean we can bring the very best technical solutions to bear here. I should also highlight that establishing this JV will support the further development the Gazprom Group’s strategic partnership with LUKOIL.”
Meretoyakhaneftegaz is the first asset where both Gazprom Neft and LUKOIL will hold equal stake. A significant portation of the asset lies within he Achimov Formation, and are categorised as hard-to-recover reserves.
“LUKOIL has always been putting a premium on homeland projects; we see great prospects for them. The Company is interested in increasing its investment both into upstream and downstream projects in our country. We are actively developing new fields in West Siberia, Timan-Pechora, the Caspian and Baltic Seas, as well as in other Russian regions. We also keep implementing selective deep conversion projects at our refineries in Russia. Gazprom and Gazprom Neft has been our strategic partners for many years. Together, we can combine the best Russian technologies to develop this new massive hydrocarbon cluster in the region we consider strategic — the Yamal-Nenets region. Its development will ensure additional hydrocarbons output, extra tax revenues to Russian budget, and have a multiplier effect for related industries,” said Vagit Alekperov, President and CEO - PJSC LUKOIL.
The Tazovskoye field was the oil and gas field in Russia to have infrastructure installed under the severe constraints arising from the COVID-19 pandemic and was commissioned by Deputy Prime Minister of the Russian Federation Alexander Novak in 2021.
Gazprom Neft and LUKOIL also plans to continue investigating further opportunities for expanding their collaboration in the locations they operate within Russia.