Timan-Zapsibgazprom outline Russian drilling plan

OAO Gazprom subsidiary OAO Zapsibgazprom is planning to drill 2,600 oil wells and construct related facilities at Nizhnechutinskoye oil field in Russia's Timan-Pechora basin under a memorandum of cooperation (MOC) with the field's operator Timan Oil & Gas PLC.

Uchenna Izundu
International Editor

LONDON, Nov. 8 -- OAO Gazprom subsidiary OAO Zapsibgazprom is planning to drill 2,600 oil wells and construct related facilities at Nizhnechutinskoye oil field in Russia's Timan-Pechora basin under a memorandum of cooperation (MOC) with the field's operator Timan Oil & Gas PLC.

Under the strategic MOC, Timan and Zapsibgazprom would work together in an investment program of up to $500 million to carry out exploration and development of Timan's oil and gas portfolio in western Russia and the Caspian basin area.

Timan said it hopes that by yearend both parties can establish the principles and teams needed to progress cooperation in the venture. They plan to work together to secure equipment and training staff as well as provide technical and operational support for drilling and building necessary support facilities for Timan's assets.

In addition to the Nizhnechutinskoye field work, Zapsibgazprom could participate in four appraisal and exploration and production wells in the KNG area of the Timan-Pechora basin and in drilling two exploration wells on Timan's offshore Russia licenses in the Caspian Sea.

"Under the MOC, which is nonbinding at this stage, it is also possible that Zapsibgazprom may agree to participate in either the share capital of Timan or its subsidiaries at some point in the future," Timan said. "In addition, any services provided by Zapsibgazprom would be paid for on terms to be agreed."

Contact Uchenna Izundu at uchennai@pennwell.com.

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