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Russia-focused oil and gas producer PetroNeft Resources (PetroNeft) is considering strategic options, including a complete or partial sale of its assets, owing to difficult operational conditions as a result of the Russia-Ukraine conflict.

The oil and gas exploration and production company owns a 90% stake in Licence 67 and a 50% interest in Licence 61, both located in the Tomsk region of Western Siberia.

PetroNeft said it is delaying the drilling of up to five development wells at the Cheremshanskoye field in Licence 67 for the foreseeable future. The decision comes as a result of failure to secure financing.

Earlier this year, PetroNeft, which selected SSK to provide drilling services for the Cheremshanskoye field, was seeking potential financing from a Russian domestic bank to fund a significant portion of the costs for the planned drilling programme.

In a press statement, the firm said: “Despite encouraging earlier communications, due to the on-going geopolitical situation, the bank is no longer able to provide a loan facility.

“The company will continue to look for alternative financing avenues but, at the same time, recognising that this is likely to be particularly challenging under the current circumstances.”

PetroNeft’s auditor BDO also intends to resign in the wake of sanctions imposed by the Western nations against Russia.

As a result, PetroNeft is seeking an alternative auditor regarding its financial statement for the current year, which is planned to be published in the first half of 2023.