Russneft interested in taking part in oil and gas projects in Algeria, Nigeria, and Chad
MOSCOW. Feb 10 (Interfax) - Oil company Russneft is looking into the possibility of taking part in oil and gas projects in Nigeria and Algeria, a source close to Russneft shareholders told Interfax.
For instance, the company is interested in purchasing a stake in one of Nigeria's offshore blocks.
Russneft co-owner Mikhail Gutseriyev told journalists at the start of February that the company is also interested in projects in the Republic of Chad.
The company is now already participating in several international projects such as several in Azerbaijan and Mauritania.
Russneft is taking part in a joint venture with State Oil Company of the Azerbaijani Republic and developing the Padar field.
In Mauritania, Russneft owns 54% in the joint venture International Petroleum Grouping S.A (IPG). IPG is implementing geological exploration at the Tanit N11 licensed block. IPG said on its website that permission to survey had been presented based on a product sharing agreement (PSA) signed with Mauritania in 2002. The PSA has three stages. Each stage comes to three years, during which IPG is obliged to carry out at least 1,000 kilometers in seismic 2D or 3D surveys, and drill at least two exploration wells at a minimum depth of 3,000 meters each. Upon the completion of each stage, IPG is obliged to return the state 25% of the explored section's territory.
IPG said in its materials that French company Beicip-Franlab carried out a simulation in 2008 for the Mauritanian-Senegal sedimentary basin, which includes the Tanit block. According to the company's estimates, total recoverable reserves in the basin come to 6.23 billion tonnes of standard fuel equivalent, including 2.33 billion tonnes within the Tanit section. "Even with a subsoil success rate of 10% at block N11, fields with up to 233 million tonnes of fuel equivalent might be uncovered," the company said.
According to the list of Russneft's associated parties, the company registered a new subsidiary, Navitas Global Resources, at the end of 2011. A company spokesperson told Interfax that this subsidiary had been formed in order to optimize management and consolidation of foreign assets under Russneft's control. The source close to Russneft's owners said that the new company will include projects in Azerbaijan and Mauritania.
Gutseriyev long wanted to transform Russneft into a major international player. The company repeatedly announced its interest in taking part in overseas oil and gas projects. Gutseriyev sold Russneft and left Russia in 2007. However, during this period overseas he continued to invest in oil and gas operations. For instance, GCM Global Energy, where former managers from Russneft started working, purchased oil and gas blocks in Azerbaijan. Gutseriyev regained control of Russneft and returned to Russia in 2009. He sold 49% of the oil company to AFK Sistema in 2010.