Alexey Miller, Chairman of the Gazprom Management Committee, and Vagit Alekperov, President of LUKOIL, signed the Master Agreement on the terms of the development of the Vaneyvisskoye and Layavozhskoye subsurface areas in the Nenets Autonomous Area.

The signing ceremony was also attended by Yury Bezdudny, Governor of the Nenets Autonomous Area.

The document, which builds on the Agreement signed at the St. Petersburg International Economic Forum 2018, outlines the preparations required to commence hydrocarbon production at the two fields.

Among other things, the document sets out the procedure for creating a joint venture to execute the project. The venture will be established by the subsidiaries of Gazprom and LUKOIL: Gazprom Dobycha Krasnodar and LUKOIL-Komi. The project company will receive the license for the fields.

During the preparatory stage, the joint venture will, inter alia, carry out design and survey works and draw up design documentation for the pre-development of the fields and the creation of infrastructure for hydrocarbon treatment and delivery up to LUKOIL's oil receiving facility and the entry point to Gazprom's gas transmission system. In addition, potential contractors and equipment suppliers will be selected, and proposals will be developed with regard to the contract strategy and the terms of financing for the project.

The close proximity of these fields to LUKOIL's operational production site will generate additional synergies in the implementation of the project and will minimize the amount of infrastructure to be built.

Notes:

- Gazprom and LUKOIL are bound by the 2014–2024 General Agreement on Strategic Partnership.
- Gazprom holds a subsurface use license for an area of federal significance that includes the Vaneyvisskoye and Layavozhskoye fields located to the east of Naryan-Mar in the Nenets Autonomous Area.
- The Vaneyvisskoye and Layavozhskoye fields have the aggregate recoverable reserves of 27.4 million tons of liquid hydrocarbons and 225.3 billion cubic meters of natural gas.

About Gazprom

Gazprom is a global energy company focused on geological exploration, production, transportation, storage, processing and sales of gas, gas condensate and oil, sales of gas as a vehicle fuel, as well as generation and marketing of heat and electric power.
Gazprom is a reliable supplier of gas to Russian and foreign consumers. The Company owns the world’s largest gas transmission system, the total length of which within the boundaries of Russia reaches 175.2 thousand kilometers. Gazprom sells more than half of its gas to Russian consumers and exports gas to over 30 countries within and beyond the former Soviet Union.

About LUKOIL

LUKOIL is one of the largest oil & gas vertical integrated companies in the world accounting for over 2% of crude production and circa 1% of proved hydrocarbon reserves globally. LUKOIL enjoys a full production cycle to control the entire value chain from upstream to downstream. LUKOIL employs over 110 thousand people who join their efforts and talents to secure the Company’s market leadership.