Oil & Gas
Gazprom Neft & Novatek Form JV for Offshore Operations in Arctic
Gazprom Neft and NOVATEK have established a joint venture to develop the Severo-Vrangelevsky license block, under an agreement signed at this year’s
Gazprom Neft and NOVATEK have established a joint venture to develop the Severo-Vrangelevsky license block, under an agreement signed at this year’s St Petersburg International Economic Forum. The transaction marks the fulfilment of a Memorandum of Understanding signed at the 2019 SPIEF, both companies having made clear their intention to cooperate in implementing projects in the Arctic and confirming their intention to establish a joint venture capable of undertaking the full range of activities involved in oil and gas prospecting, exploration and development. Pursuant to this agreement, NOVATEK acquires a 49% interest in the charter capital of Gazprom Neft subsidiary Gazpromneft-Sakhalin, which holds geological prospecting, exploration and development rights within the Severo-Vrangelevsky block. Gazprom Neft’s interest in the joint venture will be 51%.
The Severo-Vrangelevsky block forms part of Gazprom Neft’s offshore project portfolio. The 117,620 km2 block covers the East Siberian and Chukchi Seas. Sea depths at the block’s most promising geological structures run to depths of 20–90 metres. Gazprom Neft and NOVATEK’s joint assessments show the block to be highly promising, with considerable resource potential.
Gazprom Neft completed extensive seismic investigations at the Severo-Vrangelevsky block in 2018–2019, allowing the field’s geological model to beupdated and further geological prospecting works agreed with NOVATEK.
Gazprom Neft and NOVATEK have a longstanding history of successful cooperation, including in developing and producing hydrocarbons in the Yamalo-Nenets Autonomous Okrug through their Arcticgas and Nortgas joint ventures.