UPDATE: Gazprom, Lukoil set up JV to develop Yamal oil, gas cluster

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MOSCOW, Sep 16 (PRIME) -- Russian gas giant Gazprom and oil company Lukoil have signed an agreement to set up a joint venture to develop a large oil and gas cluster in the Yamalo-Nenets Autonomous District, Gazprom said in a statement on Thursday.

The joint venture is created on the basis of Meretoyahaneftegaz, a unit of Gazprom’s oil branch Gazprom Neft in the district.

Lukoil CEO Vagit Alekperov said in interview with Rossiya 24 TV channel that investment in the joint venture will exceed 200 billion rubles in the mid-term.

“We believe that…combined investment will be more than 200 billion rubles in the medium term,” Alekperov said, adding that Yamal’s fields are quite difficult to develop.

The cluster’s total geological reserves are estimated at over 1 billion tonnes of oil and 0.5 trillion cubic meters of gas.

Alekperov also said that Lukoil is interested in further cooperation Gazprom Neft.

“We are looking into a number of projects that will give both companies added value, help integrate our infrastructure, and strengthen our work together in both exploration and field development,” Alekperov said.

(72.8520 rubles – U.S. $1)

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