Lukoil, Gazprom Neft to form JV to develop oil and gas cluster in Russia
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Lukoil and Gazprom Neft to form JV to develop oil and gas cluster in Russia

17 Sep 2021 (Last Updated October 26th, 2021 11:45)

The JV will focus on clusters that hold over a billion tonnes of oil and around 500bcm of gas.

Lukoil and Gazprom Neft to form JV to develop oil and gas cluster in Russia
Tazovskoye oil and gas condensate field started production in June 2021. Credit: Gazprom Neft PJSC.

Russian energy companies Lukoil and Gazprom Neft have agreed to develop a key oil and gas cluster in the Nadym-Pur-Tazovsky area of the Yamal-Nenets Autonomous District.

Under the agreement, a joint venture (JV) will be based at Meretoyakhaneftegaz, a subsidiary of Gazprom Neft.

The hydrocarbon cluster in the Nadym-Pur-Tazovsky region includes the Tazovskoye, Meretoyakhinskoye and Severo-Samburgskoye fields, as well as two Zapadno-Yubileiny license blocks.

The Tazovskoye oil and gas condensate field, which started production earlier this year, will be at the heart of the new production area.

The Zapadno-Yubileiny blocks form part of the Nerutinskaya exploration zone located in the Yamalo-Nenets Autonomous Okrug’s Nadymsky district.

The total reserves estimate initially in place at the new cluster stands at more than a billion tonnes of oil and about 500 billion cubic metres (bcm) of gas.

Lukoil noted that a considerable proportion of the reserves initially in place, which lie within the Achimov Formation, are considered to be hard-to-recover reserves.

Additionally, Lukoil and Gazprom Neft will consider further cooperation on several lucrative projects in Russia.

Lukoil CEO Vagit Alekperov was quoted by a Russian news agency as saying that the mid-term investments of the JV were seen at $2.8bn (RUB200bn).

Gazprom Neft CEO Alexander Dyukov said: “Developing those fields covered by our joint venture with LUKOIL is a critical task, for our entire industry.

“This joint venture, bringing together our financial and technological resources, will see us working on developing hard-to-recover reserves, including producing oil from Achimovsky strata.

“This, in turn, will create new jobs, and extra tax revenues, at every level, as well as facilitating further technological development, for both our company and the entire wider ecosystem of contractors and equipment producers.”

The creation of a joint venture is subject to receipt of corporate and regulatory approvals.