Russia: Gazprom Neft and Repsol expand their exploration cluster in the Khanty-Mansi Autonomous Okrug
04 Dec 2019
Gazprom Neft and Repsol are developing a joint venture to conduct geological exploration at six license blocks in the Karabashsky zone of the Khanty-Mansi Autonomous Okrug.
The joint venture will be established through Karabashsky-6 LLC, owned by Gazprom Neft, which holds geological prospecting licenses to six blocks in the south—west of the Khanty-Mansi Autonomous Okrug. Repsol will acquire a 50.1-percent share in the company’s equity once both parties have fulfilled all conditions precedent under the contract, including securing corporate approvals. Under the terms of the Shareholders Agreement the joint venture will be managed by both parties, on an equal footing.
The joint venture will hold the rights to the Karabashsky-17, −18, −19, −25, −26 and −27 blocks, together covering a total area of approx. 1,600 sq kms. All of these are located in the Kondinsky District of the Khanty-Mansi Autonomous Okrug, and all are marked by very limited levels of geological investigation. Promising assets adjoin these sites, licenses for which are held by other Gazprom Neft and Repsol joint ventures: Evrotek-Yugra* and ASB Geo**. Synergies with new territories will allow the partners to establish a major exploration — and subsequently oil-production — cluster in the Karabashsky zone of the Khanty-Mansi Autonomous Okrug.
Preparations for geological prospecting at six Karabashsky blocks were started in 2019, with 2D seismic works planned for 2020. The operator on this project is Evrotek-Yugra, which has a professional team with extensive skills and experience in geological prospecting works within the Karabashsky zone.
Vadim Yakovlev, Deputy CEO for Upstream, Gazprom Neft, commented:
'Establishing this joint venture marks a step forward not just in developing a major exploration cluster in the south—west of the Khanty-Mansi Autonomous Okrug, but also in supporting the vector of our expanding cooperation with Repsol. We already have mutually successful projects in geological prospecting in the Khanty-Mansi Autonomous Okrug. I am confident that in joining forces and consolidating our skills and competencies on yet another asset we can unlock the resource potential of the under-researched Karabashsky zone more effectively. Our experience of working with our Spanish partners will prove a further advantage in implementing other promising projects'.
Tomas Garcia Blanco, Repsol’s Upstream Executive Managing Director, said:
'We have established a solid relationship with Gazprom Neft in the projects we have undertaken together, and this new joint venture is the result of seeking new opportunities in the Karabashsky area. We believe that our joint effort and technical expertise will result in efficient solutions to develop these assets and create value for our stakeholders'.
Source: Gazprom Neft