18 Nov 2020 09:28

Gazprom Neft approves sale of 50% of subsidiary with Gydan licenses to Shell

MOSCOW. Nov 18 (Interfax) - The board of directors of Gazprom Neft has approved the sale of a 50% stake in Gazpromneft-Aero Bryansk LLC to Anglo-Dutch oil and gas major Royal Dutch Shell (SPB: RDS.A) (SPB: RDS.A), the Russian oil company said.

Gazpromneft-Aero Bryansk holds the rights to the Leskinsky and Pukhutsyayakhsky blocks on the Gydan Peninsula.

Gazprom Neft's board therefore approved the formation of a joint venture between Gazprom Neft and Shell for the Yenisei project, which will include the Leskinsky and Pukhutsyayakhsky blocks.

The board also approved Gazprom Neft's subsequent contribution of up to 6.2 billion rubles in cash to Gazpromneft-Aero Bryansk.

The head of Shell in Russia, Cederic Cremers said earlier that Gazprom Neft and Shell plan to close the deal on this joint venture by the end of the year. The partners were expected to form a 50-50 venture.

Gazprom Neft and Shell expect a major exploration cluster to form in the northeastern part of Gydan. Assets on the peninsula are currently underexplored and quite far from transport and oil and gas infrastructure.

The hydrocarbon resources of the Leskinsky block could exceed 100 million tonnes of oil equivalent, while resources at Pukhutsyayakhsky are estimated about 35 million tonnes of oil equivalent.