Gazprom Neft and Spain’s Repsol sign Memorandum on developing cooperation in Russia

7 july 2017

Gazprom Neft has signed a Memorandum of Understanding with Spain’s Repsol. The Memorandum outlines areas for evolving collaboration through a joint enterprise to develop hydrocarbon resources in the Khanty-Mansiysk Autonomous Okrug-Yugra. The document was signed by Gazprom Neft CEO Alexander Dyukov and Repsol CEO Josu Jon Imaz.

The Memorandum confirms both parties’ interest in the further development of Evrotek-Yugra (a joint enterprise between Gazprom Neft and Repsol), and formalises both companies’ mutual interest in investigating, purchasing and developing licence blocks in the Khanty-Mansiysk Autonomous Okrug, neighbouring assets owned by Evrotek-Yugra.

Gazprom Neft acquired a 25.02-percent interest in Evrotek-Yugra (which owns seven subsoil development licences in the Khanty-Mansiysk Autonomous Okrug) from Repsol, with the right to increase its holding to 50 percent. Both parties will be managing the joint enterprise on a parity basis.

Gazprom Neft CEO Alexander Dyukov commented:

“We are delighted to be developing our partnership with Repsol. The signing of this Memorandum is testament to the high value, and long-term nature, of our collaboration. With the latest technological capabilities at their disposal, both companies are well-placed to efficiently develop this joint project in the Khanty-Mansiysk Autonomous Okrug. I have no doubt that through the Evrotek-Yugra project, Gazprom Neft and Repsol will gain experience and expertise that will be essential to supporting our long-term growth.”

Evrotek-Yugra holds exploration and production licences for the Karabashsky 1 and Karabashsky 2 blocks, as well as licenses for geological study at the Karabashsky 3, Karabashsky 9, Karabashsky 78, Karabashsky 79 and Kileysky blocks. Seismic investigations have been undertaken at all licence blocks belonging to Evrotek-Yugra, with nine exploration wells having been drilled between 2013 and 2016. The Ouryinskoye field — with recoverable (C1+C2) reserves of 33.8 million tonnes of oil — was discovered at the Karabashsky 1 and Karabashsky 2 fields in 2013. The ultimate investment decision on the development of the Ouryinskoye field is expected to be taken at the end of 2019, following completion of the geological study programme.

Repsol is one of the world’s leading oil and gas companies, operating in more than 40 countries, with an employee headcount of more than 24,000 people.

Tags: management, production