Messoyakhaneftegaz secures loan to develop Messoyakha project in Russia

A joint venture (JV) between Gazprom Neft and Rosneft known as known as Messoyakhaneftegaz has secured credit facilities under the first tranche of a syndicated loan facility to develop the Messoyakha project in Russia.

The development forms part of the loan facility agreement reached last month with Gazprombank and Sberbank.

Messoyakhaneftegaz is set to receive a project financing facility of around RUB100bn ($1.732bn) for a period of 100 years by a syndicate led by Gazprombank and Sberbank under the signed credit guarantee.

The Vostochno-Messoyakhskoye field is located in the Tazovsky district of the Yamalo-Nenetsk Autonomous Region, 340km north of Novy Urengoy.

It features estimated recoverable oil and gas condensate reserves of more than 340 million tonnes.

Messoyakhaneftegaz CEO Victor Sorokin said: “Together with our shareholders we have successfully completed work on one of the most significant transactions in the history of the Russian project financing market.

“Banks’ interest in participating in this project confirms the considerable potential of this asset and the effectiveness of the technologies we are utilising in developing the hard-to-recover onshore reserves of the Arctic.”

The company noted that the use of technologies in the field’s infrastructure development led to greater speed and efficiency during the construction process.

The development comes after Messoyakhaneftegaz completed the construction of a production well at the field, featuring a horizontal well with two pilot and two lateral wells.