Under the terms of the transaction the partners will each hold a 50% interest in the joint venture’s charter capital. The joint venture will be managed by Gazprom Neft and Shell, on an equal basis. Both companies are consolidating their capabilities and competences to allow the development of a promising exploration cluster in the north-eastern part of the Gydan Peninsula.
The joint venture’s asset portfolio includes the Leskinsky and Pukhutsyayakhsky license blocks. Both blocks are marked by a low level of geological investigation, as well as remoteness from transport and oil-and-gas infrastructure.
Located in the Taymyr district of the Krasnoyarsky Krai, the Leskinsky license block covers an area of more than 3,000 sq. km, with resources potentially in excess of 100 million tonnes of oil equivalent (mtoe). Adjoining the Leskinsky block, the Pukhutsyayakhsky block, located in the Tazovsky district of the Yamal-Nenets Autonomous Okrug, covers an area of over 800 sq. km, with resources estimated at around 35 mtoe.
So far, 2D seismic surveys have been completed at both blocks. Prospecting and appraisal activities are currently ongoing at the Leskinsky block, in order to gather data to refine the geological concept and prepare a future project development plan. Gazpromneft-GEO will be the operator on the first stage of this project, responsible for exploration works at both the Leskinsky and the Pukhutsyayakhsky blocks.
“Gydan is an area of strategic interest for Gazprom Neft. Assuming our geological hypotheses are confirmed, we can look forward to a new hydrocarbon cluster coming to the fore on the peninsula. We’ll be splitting investments on this project with our strategic partner, Shell, and combining our experience and technological expertise. Going forward, data on the structure of these blocks will make a major contribution to investigating these as yet undeveloped areas. Our collaboration with Shell already stands at more than 10 years’ duration, and continues to grow - including in sharing best practices, both in production and in environmental and industrial safety”, said Vadim Yakovlev, Deputy CEO for Exploration and Production, Gazprom Neft.
“Shell welcomes the opportunity that the Gydan project brings to strengthen our long-standing cooperation with Gazprom Neft. Our successful track record of working together developing the Salym fields gives me great confidence in our companies’ ability to conduct the exploration programme in accordance with high technical, environmental and social standards”, said Cederic Cremers, Shell Country Chair Russia.