Shell Bows Out of Russian JV With Gazprom

Shell has decided not to pursue a joint venture deal with Gazprom Neft in Russia through Meretoyakhaneftegaz “due to the challenging external environment”, according to a written statement from Gazprom.

Gazprom Neft estimated that the total resources of the fields included in Meretoyakhaneftegaz are over eight billion barrels of oil.

Gazprom Neft said it will continue developing the blocks (the Meretoyakhinskoye field, the Tazovsky and Severo-Sambrugsky blocks, and two Zapadno-Yubileiny blocks in the Yamal Nenets Autonomous District) independently.

Development of and commercial production at the Tazovsky field is expected to start by year end.

The two companies are still working together to develop business in Russia. For example, a deal closed at the end of March expanding activities in developing the Salym group of fields in the Khanty-Mansi Autonomous Okrug, through Salym Petroleum Development (SPD, a Gazprom Neft – Shell joint venture).

The companies also agreed to expand the SPD asset portfolio to include Gazprom Neft’s licence to rights for geological prospecting, exploration and production of traditional hydrocarbon reserves at the Salymsky-2 block in Khanty Mansiysk Autonomous Okrug.

Source: Rigzone