22 May 2020 17:04

Repsol will not participate in project on Gydan peninsula where JV planned with Gazprom Neft, Shell - source

MOSCOW. May 22 (Interfax) - Spanish fossil fuel company Repsol has notified Gazprom Neft that in the current economic conditions it is not prepared to participate in development of a new exploration cluster on the Gydan peninsula, where creation of a joint venture for developing the Leskinsky and Pukhutsyayakhsky license blocks was planned, an informed source told Interfax.

In June 2019, Gazprom Neft, Repsol, and Shell signed a memorandum of understanding on creation of a joint venture to develop the blocks. The deal was expected to be closed in 2020. It was planned for Gazprom Neft to have a 50% interest in the JV, while Repsol and Shell were each to hold 25%.

Gazprom Neft told Interfax that Repsol would no longer be participating in the JV in Gydan. "In connection with a review of the company's global strategy, Repsol informed Gazprom Neft that at present it was not considering the possibility of participating in the project for exploring assets on the Gydan peninsula, which it confirmed interest in earlier," a representative of the Russian oil company said.

Gazprom Neft is continuing geological exploration at the blocks in line with the earlier approved work plan. The company is considering the possibility of implementing the project together with its strategic partner, the Shell concern, the representative said.