Gazprom and Lukoil mulling to develop two Russian gas fields

Gazprom and Lukoil are in talks to create a joint venture for the development of the Vaneyvisskoye and Layavozhskoye subsurface fields in Russia.

During the recently held working meeting, Gazprom Management Committee chairman Alexey Miller and Lukoil president Vagit Alekperov discussed the issues related to their cooperation.

A review was also made by the two parties of the ongoing efforts to create a joint venture (JV) for the development of the project.

Located to the east of Naryan-Mar in the Nenets Autonomous Area, the Vaneyvisskoye and Layavozhskoye fields have estimated total recoverable reserves of 27.4 million tons of liquid hydrocarbons and 225.3 billion cubic metres of natural gas.

Gazprom and Lukoil signed the master agreement last year on the terms of implementing the project to develop the two fields.

The deal sets out the procedure for the firms to create a joint venture to execute the project, among other things.

The new joint venture will be established by the subsidiaries of Gazprom and LUKOIL – Gazprom Dobycha Krasnodar and LUKOIL-Komi, respectively.

The joint venture company will seek license required for the development of the fields.

As per the 2014-2024 General Agreement on Strategic Partnership signed between the two parties earlier, Lukoil is responsible for supplying gas into Gazprom’s gas transmission system, among other things.

In August last year, Lukoil launched a major project aimed at the ‘modernisation’ of Yarega field oil mines and associated infrastructure.

Located in the Komi Republic of Russia, Yarega field uses mining techniques to produce oil.

The modernisation project involves the complete reconstruction of all three Yarega oil mines.