Russia: Lukoil and Gazprom Neft sign agreement for new joint venture
After the negotiations, Lukoil has acquired 50% of the equity share of Gazprom’s subsidiary Meretoyakhaneftegaz LLC.
Lukoil and Gazprom Neft have concluded the transaction agreement for 50% equity share of Meretoyakhaneftegaz LLC, a Gazprom wholly owned subsidiary. The contract signed included as well the creation of a joint venture to develop a large oil and gas cluster in the Nadym-Pur-Tazovsky area of the Yamal-Nenets Autonomous District.
The transaction, which is planned to be completed in 2022, consisted of 52 billions rubles which translates to about 700 million dollars. It also included the cession of claim of Gazprom Neft’s loans worth 35 billions rubles.
Both firms agreed upon the programme of additional exploration of the blocks of Meretoyakhaneftegaz LLC. Lukoil will be in charge of financing a total of 8.9 billions rubles of expenditures of the operations. The deal will be officialized after the necessary corporate approvals and the consent of the Federal Antimonopoly Service.
Back in September, both companies concluded the Tazovskoye oil and gas condensate field, another joint venture based on Meretoyakhaneftegaz LLC. The facility was put on-stream last June and will be at the heart of the new production area.
The companies also agreed on developing the Severo-Samburgskoye and Meretoyakhinskoye field, as well as two Zapadno-Yubileiny license blocks. The cluster’s total reserves initially in place stand at over billion tonnes of oil and about 500 bcm of gas.
