Gazprom Neft, NOVATEK set up JV to develop Severo-Vrangelevsky license block

AK&M 08 June 2021 20:55

NOVATEK has acquired a 49% equity stake in Gazpromneft-Sakhalin (a subsidiary of Gazprom Neft), the license holder for geological survey, exploration and production of hydrocarbons within the Severo-Vrangelevsky license block. Gazprom Neft will hold a 51% stake in the joint venture.

The Severo-Vrangelevsky license block is in Gazprom Neft's portfolio of offshore projects.

Gazprom Neft PJSC (tax number: 5504036333) and its subsidiaries own 61 licenses for the prospecting and development of oil fields. The proven oil reserves in the company's fields exceed 4.5 billion barrels. The company's largest shareholder is Gazprom Group.

IFRS profit of Gazprom Neft PJSC for 1Q21 attributable to the company's shareholders amounted to RUB 84.15 billion vs a loss of RUB 13.8 billion a year earlier. Revenue increased by 18.7% to RUB 610.98 billion from RUB 514.57 billion, EBITDA to RUB 173.7 billion from RUB 81.37 billion.

JSC NOVATEK is the largest independent natural gas producer in Russia. Founded in 1994, the company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. Upstream activities of the company's subsidiaries and joint ventures are concentrated mainly in the prolific Yamal-Nenets autonomous area, which is the world's largest natural gas producing area and accounts for approximately 80% of Russia's natural gas production and approximately 15% of the world's gas production.