Lukoil, Gazprom Neft create JV based on Meretoyakhaneftegaz with reserves of 1 bln tonnes oil, 500 bcm gas

MOSCOW. Sept 16 (Interfax) - Lukoil and Gazprom Neft have signed an agreement on creating a joint venture to develop a major oil and gas cluster in the Nadym-Pur-Tazovsky area of the Yamal-Nenets Autonomous District, the companies said.

The JV will be based on Meretoyakhaneftegaz LLC, a Gazprom Neft subsidiary. The Tazovskoye oil and gas condensate field, which was put on stream this June, will be at heart of the new production area. The venture is also to develop the Severo-Samburgskoye and Meretoyakhinskoye fields, as well as two Zapadno-Yubileyny license blocks. These areas currently undergo additional appraisal and pilot works, on which basis a development strategy for the cluster will be developed. Total geological reserves initially in place at this new cluster stand at over 1 billion tonnes of oil and about 500 bcm of gas. A considerable proportion of the reserves initially in place lie within the Achimov formation and are categorised as hard-to-recover reserves.

Meretoyakhaneftegaz is the first asset to be managed by LUKOIL and Gazprom Neft on a parity (50:50) basis. Over the next few months, the parties plan to prepare detailed binding documents on establishing the joint venture, as well to secure all necessary corporate and regulatory approvals.

The companies "will also look into further opportunities to expand their cooperation on several lucrative projects in their regions of operation in Russia."