By Oliver Griffin


Gazprom Neft (SIBN.MZ) on Thursday said it has signed an agreement with Royal Dutch Shell PLC (RDSB.LN) to create a joint venture for the development of license blocks in Yamal in northwestern Russia.

The company said it and Shell have reached a sale and purchase agreement for a 50% interest in the authorized share capital of Meretoyakhaneftegaz, which currently holds licensing rights to the Meretoyakhinskoye field.

Gazprom Neft said the deal is expected to be finalized in late 2019 to early 2020, once all the necessary approvals are received.

Alexander Dyukov, chairman of Gazprom Neft's management board, said his company will be investigating further opportunities for implementing projects with Shell in future, including outside of Russia.

Total reserves in place at fields to be owned by Meretoyakhaneftegaz will stand at about 1.1 billion metric tons of oil, Gazprom said.


Write to Oliver Griffin at; @OliGGriffin


(END) Dow Jones Newswires

June 06, 2019 09:59 ET (13:59 GMT)

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