Gazprom to acquire 25.02% stake in Repsol’s Evrotek-Yugra field

Gazprom Neft has established a joint venture (JV) with Spanish-based Repsol, acquiring a 25.02% stake in the latter’s Evrotek-Yugra field.

Through the acquisition, Gazprom will have access to Evrotek-Yugra’s exploration and production rights in seven licence blocks in the Khanty-Mansiysk Autonomous Okrug in Russia.

Under the terms of the deal, the JV will continue geological prospecting works in the Kondinsky district, which is located in the south-west of the Khanty-Mansiysk Autonomous Okrug that hosts the acquired licence blocks.

Gazprom Neft PJSC management board chairman and CEO Alexander Dyukov said: “Creating this JV with Repsol gives Gazprom Neft the opportunity to start work on a promising development cluster in the south-west of the Khanty-Mansiysk Autonomous Okrug, our key region of operation.

“Alongside strategically expanding our resource base, we also have the opportunity to share our geological prospecting skills and know-how with one of the largest oil companies in Europe.

“Our combined geological exploration expertise will ensure the planned works will be executed with the maximum efficiency.”

Following the transaction, Gazprom Neft PJSC and Repsol will jointly manage Evrotek-Yugra.

Seismic investigations were carried out at all Evrotek-Yugra field licence blocks and nine exploration wells were drilled between 2013 and last year.

Situated within the Karabashsky 1 and Karabashsky 2 blocks, the Ouryinskoye field is said to have recoverable (C1+C2) reserves of 33.8 million tonnes of oil.

It is further noted that the final investment decision in connection with the development of the field will be taken at the end of 2019, once the geological prospecting programme at the field is completed.

With a production output of around 700,000 barrels of oil equivalent a day (boe/d), Repsol has a refining capacity of 998,000 barrels of oil a day (b/d).

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Image: Repsol’s operations in Russia. Photo: courtesy of Repsol.