President of LUKOIL Vagit Alekperov and Chairman of the Management Committee of Gazprom Alexey Miller signed the Master Agreement on the Terms of the Development of Vaneyvisskoye and Layavozhskoye fields (located in the Nenets region, Russia).

Governor of the Nenets Autonomous District Yuri Bezdudny also took part in the signing ceremony.

This document builds on the earlier agreement, which had been concluded in 2018 at the St. Petersburg International Economic Forum, and elaborates on the necessary arrangements to commence hydrocarbon production at the fields.

Among other matters, the parties decided on the course for creating a joint venture to carry out the project. It will be established by LUKOIL and Gazprom subsidiaries: LUKOIL-Komi and Gazprom Dobycha Krasnodar. This special-purpose entity will receive the licence to develop the fields.

At the preparatory stage, the joint venture will focus in particular on the design and survey work, put together documentation for the construction of field facilities and necessary infrastructure for hydrocarbon treatment and transport to LUKOIL's oil receiving facility and an entry point to Gazprom's gas transportation system. The venture will also determine prospective contractors and equipment suppliers, and make suggestions with respect to the contracting strategy and ways to fund the project.

The fields are located in the immediate vicinity of LUKOIL's operational production site. Thus, realization of the project will result in a synergy and require only a minimum of infrastructure to be created.

Note

Relations between LUKOIL and Gazprom are guided by the General Agreement on Strategic Partnership for 2014-2024.
Gazprom is a current holder of a subsoil use license to explore and produce hydrocarbons in the area of federal significance that includes Vaneyvisskoye and Layavozhskoye fields located in the Nenets region, Russia, eastward of the city of Naryan-Mar.
Vaneyvisskoye and Layavozhskoye fields have cumulative recoverable resources of 27.4 million tonnes of liquid hydrocarbons and 225.3 billion cubic meters of natural gas.

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.

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.