The Chief Executive Officers of Repsol and Gazprom Neft, Josu Jon Imaz and Alexander Dyukov, in Madrid signed a memorandum of understanding to increase collaboration between both companies in West Siberia and jointly explore investment opportunities in the area adjacent to existing exploration licenses owned by Repsol’s affiliate Eurotek Yugra.

The memorandum of understanding between the companies commits both to seek new opportunities in collaboration in order to grow exploratory activity in West Siberia. Either company will be able to pursue opportunities individually after the partner’s right of first refusal.

Eurotek Yugra, owned 75% by Repsol and 25% by Gazprom Neft, owns seven exploratory blocks in West Siberia, a relatively underexplored area of Russia with significant potential. Gazprom Neft has an option to increase its stake in Eurotek Yugra to 50%.

Repsol in 2014 announced two hydrocarbon discoveries in the Karabashsky 1 and 2 blocks in the area, whose recoverable resources are estimated at 240 million barrels of oil equivalent by the Ministry of Natural Resources and Environment of the Russian Federation.

About Repsol

Repsol is an integrated global energy company with vast sector experience. It carries out Upstream and Downstream activities throughout the entire world.

About Gazprom Neft

Gazprom Neft is a vertically integrated oil company primarily engaged in oil & gas exploration and production (E&P), the sale and distribution of crude oil, and the production and sale of petroleum products.

The company’s proven SPE (PRMS) hydrocarbon reserves exceed 1.2 billion tonnes of oil equivalent (toe), placing it among the world’s 20 largest oil companies.

The company operates in many of Russia’s prominent oil and gas regions including Khanty-Mansiysk (Yugra), Omsk, Orenburg, Tomsk, and Yamalo-Nenets. Gazprom Neft’s major refining facilities are located in Moscow, Omsk, and Yaroslavl, and it also has refineries in Serbia. Apart from its upstream activities in Russia, the company is involved in international E&P, including projects in Iraq and Venezuela.