Russia’s Gazprom Neft and Shell have finalised an agreement to extend cooperation in upstream, technology and renewable energy.

Under the memorandum of understanding (MoU), the firms will extend their cooperation in hydrocarbon exploration and production, technological collaboration and reduction in carbon footprint.

They will jointly undertake exploration and production projects in western Siberia.

Work would include the development of the Achimov, Paleozoic and Jurassic hydrocarbon deposits.

Gazprom Neft management board deputy chairman Vadim Yakovlev said: “Gazprom Neft and Shell are bound together by more than a decade of successful collaboration both on large-scale exploration and production projects and on the technology side.

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By GlobalData

“The new MoU sets out the principal areas of work in which we wish to further develop our strategic partnership in the years to come.”

Gazprom Neft said it would also continue discussions with the British-Dutch multinational oil and gas company regarding their cooperation in developing the Ayashsky license block in the Sea of Okhotsk.

Moreover, the firms intend to explore the potential for using carbon capture, utilisation and storage (CCUS) solutions at their joint venture (JV) assets.

Discussions will also be held over the possible use of technology solutions for hydrogen production via steam reforming of natural gas, together with carbon capture.

The Russian oil producer said that it will also extend technological cooperation with Shell in developing hard-to-recover reserves.

Shell Russia country chair Cederic Cremers said: “We welcome extension of our cooperation with GPN, our long-time reliable and trusted partner, to areas in which we can join our forces, experiences and expertise in reducing the carbon footprint of our operations.”

Last year, Gazprom Neft formed a joint venture with Shell to explore and develop a major geological prospecting cluster in the Gydan Peninsula.

This cluster covers the Pukhutsyayakhsky and Leskinsky licence blocks.