Gazprom Neft and Shell have agreed to expand their JV Salym Petroleum Development, Gazprom Neft has announced.
The development’s portfolio of assets will include a license for the right to geological survey, exploration and production of conventional hydrocarbon reserves of the Salymsky 2 block in the Khanty Mansiisk Autonomous Region.
A statement from Gazprom Neft said: “Pursuant to the decision of the partners, Salym Petroleum Development N.V. (SPD) acquires from Gazpromneft Khantos and Gazpromneft-Invest 100 per cent interest in the share capital of Salymsky-2 LLC in whose name the license for the block of the same name will be reissued. SPD will also act as the operator of the new development project.”
The Salymsky-2 license block is an area of 376 km2 in the Khanty Mansiisk Autonomous Region. The eastern part of the block adjoins the West Salym, Vadelyp and Upper Salym fields, which are being developed by SPD. There are no field-specific infrastructure facilities.
But close proximity to the areas that are being developed by SPD “will have a synergistic effect, allowing efficient use of the existing SPD production facilities”, the statement added.
It added that the deal will be closed after all the conditions precedent of the contract are met in accordance with the laws applicable to the parties.
The Salymsky-2 block is still being studied; two appraisal wells have been drilled at the site. At the moment interpretation of geological information obtained from the earlier 3D seismic surveys is underway.
Vadim Yakovlev, Gazprom Neft Deputy CEO Upstream, said: “By transferring the Salymsky-2 block to the SPD asset base and achieving synergy with SPD’s exciting infrastructure we will be able to receive the maximum gains from the block and realise its production potential in the most efficient way, identifying geological uncertainties as part of the additional appraisal effort.”
Cederic Cremers, Shell Country Chair Russia, added: “Shell fully supports the expansion of the Salym project. This support is based on SPD’s successful experience as an efficient field development operator and on the confidence in the reliability and professionalism of our partner, Gazprom Neft.”
For more information visit www.gazprom-neft.com