PRESS: Gazprom Neft, Novatek may set up JV in Arctic

MOSCOW, Apr 3 (PRIME) -- Russian oil company Gazprom Neft and independent gas producer Novatek are considering setting up a joint venture to explore and develop hydrocarbon fields in the Kara Sea along the Yamal Peninsula coastline, Kommersant business daily reported citing sources on Wednesday.

Gapzrom Neft will get a controlling stake of 51% and bring licenses for the fields to the joint venture while Novatek will inject cash.

The project may cover the Beloostrovsky, Skuratovsky and Nyarmeisky areas with projected reserves of 3.4 trillion cubic meters of gas under D1 category and 183 million tonnes of oil and gas condensate, according to state geological exploration company Rosgeo’s estimate. Currently, licenses for the areas belong to Gazprom Neft’s parent Gazprom, but they may be re-registered, one of the sources said.

The joint venture may make Novatek Russia’s first private company having access to the Arctic shelf.

A representative of Gazprom Neft said that the companies have an established track record of cooperation which ensures further development of the partnership.

A representative of Gazprom said that transfer of licenses for the areas to Gazprom Neft is not under consideration yet.

End