23 May 2022 14:40

Shell pulls out of Gydan Energy JV with Gazprom Neft

MOSCOW. May 23 (Interfax) - Shell (SPB: RDS.A) plc has pulled out of the Gydan Energy joint venture with Gazprom Neft , which is working at the Yenisey project on the Gydan Peninsula in the north Krasnoyarsk territory.

According to the Unified State Register of Legal Entities, Gazprom Neft has owned 100% of LLC Gydan energy since May 19. Shell used to own 50% of the JV.

Gazprom Neft and Shell had planned via the JV to form a major new cluster for prospecting and exploration in the Arctic, with commercial production due to begin in 2028, reaching 19.9 million tonnes in 2034.

Gydan Energy holds licenses to the onshore Leskinsky and Pukhutsyayakhsky license blocks on the Gydan Peninsula. Both blocks are marked by a low level of geological investigation, as well as remoteness from transport and oil-and-gas infrastructure. Located in the Taymyr District of the Krasnoyarsk Territory, the Leskinsky license block covers an area of more than 3,000 square kilometres, with resources potentially in excess of 100 million tonnes of oil equivalent. Adjoining the Leskinsky block, the Pukhutsyayakhsky block, located in the Tazovsky District of the Yamal-Nenets Autonomous District, covers an area of over 800 square kilometres, with resources estimated at around 35 mtoe.

Shell has announced plans to gradually exit all Russian hydrocarbon projects, including oil, petroleum products, gas and liquefied gas. It intends to pull out of joint ventures with Gazprom , including its 27.5% stake in the Sakhalin-2 LNG project, 50% stake in Salym Petroleum Development and the Gydan Energy joint venture with Gazprom Neft , as well as end its participation in the Nord Stream 2 gas pipeline project.

Lukoil and Shell said on May 12 that they had signed an agreement according to which Lukoil will buy 100% of Shell Neft LLC. Shell Neft's assets include 411 filling stations located predominantly in Russia's Central and Northwestern federal districts and a lubricants blending plant in the Tver region. The sale will be completed after it is approved by the Federal Antimonopoly Service