By Oliver Griffin

 

Gazprom Neft (SIBN.MZ) has signed a memorandum of understanding with Royal Dutch Shell PLC (RDSB.LN) and Spain's Repsol SA (REP.MC) to establish a joint venture aimed at developing license blocks in Siberia, the Russian company said Friday.

Gazprom Neft said the document was signed at the International Economic Forum in St. Petersburg, Russia, and that it expects the deal to close in 2020 when all corporate and regulatory approvals have been obtained.

The licenses contain the Leskinsky and Pukhutsyayakhsky blocks and are located on the Gydan Peninsula. One the deal is closed, Gazprom Neft will hold 50% of the joint venture, while Shell and Repsol will control 25% each.

Both blocks are under-explored and located at a considerable distance from oil-and-gas and transport infrastructure, Gazprom Neft said.

 

Write to Oliver Griffin at oliver.griffin@dowjones.com; @OliGGriffin

 

(END) Dow Jones Newswires

June 07, 2019 06:07 ET (10:07 GMT)

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