Russia's oil producer Gazprom Neft said it would create a joint venture with Spanish energy company Repsol in Russia as it acquired a stake in the latter’s E&P unit.
Gazprom Neft acquired a 25.02 percent stake with the right to increase it to 50 percent in Evrotek-Yugra, owned by Repsol and holds exploration and production rights to seven license blocks in West Siberia, the Russian firm said in a statement.
“This joint enterprise will continue geological prospecting works in the Kondinsky district (located in the south—west of the Khanty-Mansiysk Autonomous Okrug), where all of the acquired license blocks are located,” Gazprom Neft said.
“Creating this joint venture with Repsol gives Gazprom Neft the opportunity to start work on a promising development cluster in the south—west of the Khanty-Mansiysk Autonomous Okrug, our key region of operation,” Alexander Dyukov, Gazprom Neft CEO said.
“Alongside strategically expanding our resource base, we also have the opportunity to share our geological prospecting skills and know-how with one of the largest oil companies in Europe. Our combined geological exploration expertise will ensure the planned works will be executed with the maximum efficiency,” he added.
Seismic investigations have been undertaken at all license blocks belonging to Evrotek-Yugra, with nine exploration wells drilled between 2013 and 2016. The Ouryinskoye field — with recoverable (C1+C2) reserves of 33.8 million tonnes of oil — was discovered at the Karabashsky 1 and Karabashsky 2 fields in 2013.
The company will take final decision on investment in the development of the Ouryinskoye field at the end of 2019, following completion of the geological prospecting programme.