Lukoil and Gazprom confirm oil and gas cluster joint venture
By Jenni Reid
10:52, 29 December 2021
Russian energy firms Lukoil (LKOH) and Gazprom Neft (SIBN) have signed a binding agreement over the creation of a joint venture to develop a large oil and gas cluster in western Siberia.
Lukoil will take a 50% equity share in Gazprom subsidiary Meretoyakhaneftegaz for 52 billion rubles (£525m), including cession of the claim of 35 billion rubles' worth of Gazprom loans, and pay 8.9 billion rubles (£89.9m) for additional exploration of its blocks.
The cluster is based in the Nadym-Pur-Tazovsky area of the Yamal-Nenets Autonomous District and has total reserves initially in place of over a billion tonnes of oil and about 500 bcm of gas.
The joint venture will also develop the Severo-Samburgskoye and Meretoyakhinskoye fields, and two Zapadno-Yubileiny license blocks.
SIBN stock was down 0.63% to 537.3 rubles (£5.42) on the Moscow Stock Exchange at 11:00 GMT, while LKOH was down 0.21% to 6,464.5 rubles (£65.25).
Last week Russia’s deputy prime minister Alexander Novak said he expected oil output to increase 5% year-on-year and hit its pre-pandemic level by May.
Read more: Oil futures rise as Omicron worries ease
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