Gazprom Neft offers participation in Sakhalin producing assets to Shell

TASS Russian News Agency | Jan 17, 2020 at 2:06 PM

/Update/

MOSCOW, January 17. /TASS/. Gazprom Neft made a proposal to Shell on participation in producing assets of the company in Sakhalin, deputy chief executive of the Russian oil producer Vadim Yakovlev told reporters on Friday.

"The field exploration maturity provides an opportunity to hold a specific dialog with potential partners interested in entering the project. Such a proposal was made to Shell in particular. We cooperate; I think it can be said that there is an interest in exploration from the company's side," Yakovlev said.

Gazprom Neft in its turn is studying Shell assets in the Middle East and North Africa, the top manager said. "Shell is providing us with opportunities to evaluate assets; we are appraising them. There are things currently covered by our dialogue, and then everything will depend on the extent of attractiveness of this option for us, its importance and competitiveness in our portfolio," he said. "In particular, we are viewing a number of opportunities in the Middle East and in North Africa," Yakovlev noted.

"Certainly that when providing extra opportunities for Shell to expand presence in Russia, the expectation is formed with us that Shell will offer opportunities for us in other territories also. However, I would like to stress once against that we do not seek after swap deals - they are always complex. In any case, we make the decision on entering a new project on the basis of portfolio considerations," the top manager said.

Gazprom Neft has a very good portfolio of opportunities in Russia and a range of high-margin projects securing long-term growth for the company, Yakovlev noted. "It is rather difficult to find assets abroad, whose capabilities will suit us in respect of the return rate," he said.

Shell has an opportunity to cooperate with Gazprom Neft in other projects in Russia, particularly on Achimov horizons of the Yamburg field, the top manager added.

About Sakhalin projects

Total original in-place oil reserves of Neptune and Triton fields of the Ayashsky license area on Sakhalin amount to more than 500 tonnes of oil equivalent, Executive Board Member of the Russian oil producer Gazprom Neft Andrei Patrushev said at the Eastern Economic Forum (EEF) in September 2019. In-place reserves of Neptune are over 400 mln tonnes of oil equivalent, while Neptune's reserves exceed 130 mln tonnes.

The Ayashsky license area in the Sea of Okhotsk is located 55 km away of the coastline, in the northeastern part of the Sakhalin shelf. The sea depth on the area is up to 90 m.