Gazprom Neft, Shell create JV for developing Gydan Peninsula blocks

Russian oil company Gazprom Neft and Royal Dutch Shell have completed a deal to set up a joint venture (JV) for studying and developing the onshore Leskinsky and Pukhutsyayakhsky blocks on the Gydan Peninsula in Siberia, Russia.

As per the terms of the transaction, both the companies will hold a 50% interest in the charter capital of the joint venture.

Gazprom Neft and Shell are in the process of integrating their capabilities and competencies to enable the development of a potential exploration cluster in the north-eastern Gydan Peninsula.

The Leskinsky and Pukhutsyayakhsky license blocks are both marked by a low level of geological investigation and also lack of proximity to transportation facilities and oil-and-gas infrastructure.

The Leskinsky license block, which is located in the Taymyr district of the Krasnoyarsky Krai, is spread over an area of over 3,000 square kilometers, with resources potentially over 100 million tonnes of oil equivalent (mtoe).

On the other hand, the Pukhutsyayakhsky block is located in the Tazovsky district of the Yamal-Nenets Autonomous Okrug. It spans an area of more than 800 square kilometers, with resources estimated at nearly 35 million tonnes of oil equivalent (mtoe).

Gazprom Neft, Shell create JV for developing Gydan Peninsula blocks. Photo courtesy of Gazprom Neft PJSC.

According to Gazprom Neft, 2D seismic surveys have been completed on both the onshore blocks. Currently, prospecting and appraisal activities at the Leskinsky block are being carried out, said the Russian oil giant.

Gazprom Neft said that the activities will help to get data for refining the geological concept and for preparing a future project development plan for the blocks.

Vadim Yakovlev – Gazprom Neft Deputy CEO for Exploration and Production said: “Gydan is an area of strategic interest for Gazprom Neft. Assuming our geological hypotheses are confirmed, we can look forward to a new hydrocarbon cluster coming to the fore on the peninsula.

“We’ll be splitting investments on this project with our strategic partner, Shell, and combining our experience and technological expertise. Going forward, data on the structure of these blocks will make a major contribution to investigating these as yet undeveloped areas.”

For the first stage of the project, Gazpromneft-GEO, which is a competency center established by Gazprom Neft in 2018, will be the operator. Gazpromneft-GEO will be responsible for carrying out exploration works at the Leskinsky and also the Pukhutsyayakhsky blocks.

Gazprom Neft and Shell have also signed a couple of memorandums of understanding (MOU) for cooperation in cutting down GHG emissions and on enhancing air transport safety.

In line with the MOUs on emissions-reduction projects, the joint venture partners will explore opportunities for working together in developing nature-based solutions.

Cederic Cremers – Shell Country Chair Russia said: “Shell welcomes the opportunity that the Gydan project brings to strengthen our long-standing cooperation with Gazprom Neft.

“Our successful track record of working together developing the Salym fields gives me great confidence in our companies’ ability to conduct the exploration programme in accordance with high technical, environmental and social standards.”