LUKOIL and Gazprom Neft in JV to develop oil and gas condensate field

The Agreement on creation of new joint venture to develop a large oil and gas cluster in the Yamal-Nenets Autonomous District was signed by Vagit Alekperov and Alexander Dyukov in presence of Alexey Miller, Chairman of the Management Committee of Gazprom.

The joint venture will be based at Meretoyakhaneftegaz LLC, a Gazprom Neft subsidiary. The Tazovskoye oil and gas condensate field, which was put on-stream this June, will be at heart of the new production area. The venture is also to develop the Severo-Samburgskoye and Meretoyakhinskoye fields, as well as two ZapadnoYubileiny license blocks. These areas currently undergo additional appraisal and pilot works, on which basis a development strategy for the cluster will be developed.

Total reserves initially in place at this new cluster stand at over a billion tonnes of oil and about 500 bcm of gas. A considerable proportion of the reserves initially in place lie within the Achimov Formation and are categorised as hard-torecover reserves.

Meretoyakhaneftegaz is the first asset to be managed by LUKOIL and Gazprom Neft on a parity (50:50) basis. Over the next few months, the parties plan to prepare detailed binding documents on establishing the joint venture, as well to secure all necessary corporate and regulatory approvals.

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