17 Nov 2010 17:37

Itera makes offer to Gazprom to form JV for field development

MOSCOW. Nov 17 (Interfax) - OOO Itera has proposed to Gazprom a program for joint development of its licensed small and medium-sized fields (up to 50 billion cubic meters of gas).

"In our view, the optimal form of partnership is forming a joint venture with Gazprom having the controlling packet. The company has all the potential, both technical and financing, for launching operations at new fields quickly," the company said in a press release quoting Itera's executive board chairman, Vladimir Makeyev.

Furthermore, Itera plans to take active part in auctions and tenders for licensed sections, mostly located in the Yamalo-Nenets Autonomous District.

An informed source told Interfax that Itera had proposed to Gazprom to give the JV licenses for its fields currently not being developed. Itera, in turn, would provide financing and technological support.

The source said that Gazprom has yet to provide its principle agreement to forming a JV. However, Itera's head Igor Makarov will meet with Gazprom CEO Alexei Miller in the near future.

The source did not specify how much of Gazprom's reserves could be developed if the JV plan is accepted but noted that Itera had already put together a list of proposed fields for development.

Gazprom and Itera currently have ownership in Purgaz. Gazprom has 51% while Itera holds the remaining 49%.