Repsol Withdraws from Planned Siberian JV with Gazprom Neft and Shell
Spanish integrated oil company Repsol SA is pulling out of a planned joint venture that was announced last year with energy giants PJSC Gazprom Neft and Royal Dutch Shell Plc to develop the Leskinsky and Pukhutsyayakhsky blocks in north part of western Siberia. Gazprom Neft, the oil producing arm of Russian state-owned oil PJSC Gazprom currently holds a 100% interest in the blocks, which are under-explored and located at a considerable distance from oil-and-gas and transport infrastructure.
In June 2019, Gazprom Neft signed a Memorandum of Understanding (MoU) with Repsol and Shell to develop the blocks. Under the terms of the MoU, Gazprom Neft would have held a 50% interest in the JV, with Repsol and Shell each holding 25%.
Located in Taymyrsky district of Krasnoyarsky Krai on the Gydan peninsula, the Leskinsky block covers an area of 3,027 sq. km and has approximately 100 million tonnes of oil equivalent (MMtoe) of estimated D2 (Russian classification) recoverable oil reserves. The adjoining Pukhutsyayakhsky block covers an area of 825 sq. km in Tazovsky district of Yamal-Nenets Autonomous Okrug. According to official estimates, recoverable D1 and D2 oil reserves for the block stand at approximately 35 MMtoe.
“It’s an option we had on a well we are choosing not to exercise,” Repsol’s spokesman told the media without elaborating further on reasons for the company’s withdrawal from the project. According to media reports, Gazprom Neft and Shell are likely to continue to with their plans for developing the assets.
Repsol currently holds other interests in the south-west part of Siberia. In December last year, it signed another agreement with Gazprom Neft to jointly conduct geological exploration activities on 6 license blocks in the Karabashsky zone of Khanty-Mansi Autonomous Okrug.