In accordance with the previously approved work plan, Gazprom Neft will independently develop oil and gas fields in the Yamalo-Nenets Autonomous Okrug of northwestern Russia formerly intended for joint development with Royal Dutch Shell Plc.
Shell, citing the challenging external environment, advised Gazprom that it will not complete the previously agreed upon deal to purchase a 50% stake in Gazprom Neft subsidiary Meretoyakhaneftegaz, which holds license rights to Meretoyakhinskoye oil field (OGJ Online, June 6, 2019). At closing, the JV holders were to receive Tazovsky and Severo-Sambrugsky blocks and two Zapadno-Yubileiny blocks, which are in varying stages of development.
Gazprom expects development and commercial production at Tazovsky to begin by yearend.
Shell’s decision to withdraw from the JV does not impact its cooperation with Gazprom on current and potential new opportunities, Gazprom said.
In March, Salym Petroleum Development (SPD)—a Gazprom Neft-Shell JV—closed on a deal to expand development in the Salym group of fields in the Khanty-Mansi Autonomous Okrug. The SPD asset portfolio expanded to include Gazprom Neft’s license to rights for geological prospecting, exploration, and production of traditional hydrocarbon reserves at Salymsky-2 Block in Khanty Mansiysk Autonomous Okrug.