Shell has advised Gazprom Neft that, due to the challenging external environment, it will not pursue the completion of a deal to create a joint venture through Meretoyakhaneftegaz.

Gazprom Neft will continue developing those license blocks previously intended to form part of the joint venture (the Meretoyakhinskoye field, the Tazovsky and Severo-Sambrugsky blocks, and two Zapadno-Yubileiny blocks in the Yamal Nenets Autonomous District) independently, in accordance with the previously approved work plan. On which basis, development of and commercial production at the Tazovsky field is expected to start by end-2020.

This decision by Shell with regard to this transaction will not impact its commitment to developing its business in Russia, including cooperation with Gazprom Neft, on current and potential new opportunities.

For example, a deal had been closed at the end of March on expanding activities in developing the Salym group of fields in the Khanty-Mansi Autonomous Okrug, through Salym Petroleum Development (SPD, a Gazprom Neft—Shell joint venture). Pursuant to a decision by both parties the SPD asset portfolio was expanded to include Gazprom Neft’s license to rights for geological prospecting, exploration and production of traditional hydrocarbon reserves at the Salymsky-2 block in Khanty Mansiysk Autonomous Okrug.

About Gazprom Neft

Gazprom Neft is a vertically integrated oil company, primarily involved in oil and gas exploration and production, refining, and the production and sale of oil products. The Gazprom Neft’s corporate structure comprises more than 70 production, refining and sales subsidiaries throughout Russia, the CIS, and abroad.
The company’s proved and probable reserves (SPE-PRMS) are estimated at 2.78 billion tonnes of oil equivalent (btoe), making Gazprom Neft one of the top-20 largest oil and gas companies in the world, and one of Russia’s top three largest companies in terms of production and refining volumes. Total production in 2017 reached 89.75 million tonnes of oil equivalent (mtoe), with refining volumes of 40.1 million tonnes.
Gazprom Neft products are exported to more than 50 countries worldwide, and sold throughout the Russian Federation and abroad. The company’s filling station network totals more than 1,850 outlets throughout Russia, the CIS and Europe.

About Royal Dutch Shell plc

Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects.