The two companies are jointly to develop license areas in Russia’s far northern Gydan Peninsula.
A joint venture established on the 50-50 share relationship is to explore and develop the license areas of Leskinsky and Pukhutsyayakhsky, Gazprom Neft informs.
The licenses together hold an estimated 135 million tons of oil equivalents and could become part of a major new hydrocarbon cluster in Gydan, the companies say.
The area is characterized by its low level of exploration and big distances from existing infrastructure.
“The Gydan Peninsula is a zone of strategic interest for Gazprom Neft [and] in case the geological hypothesis is confirmed a new hydrocarbon province could appear in the area,” Gazprom Neft Deputy General Director Vadim Yakovlev says.
“Shell greets the opportunity to further strengthen its year-long cooperation with Gazprom Neft in the frames of the project in Peninsula Gydan,” says Cedrik Kremers, leader of Shell Russia.
The Gydan is located along the coast of the Kara Sea and borders on Yamal, the hydrocarbon-rich peninsula. From before, Gydan is site for several more projects, including Novatek’s Arctic LNG 2.
Related stories from around the North:
Canada: Indigenous leaders applaud most recent Canadian bank to nix financing Arctic oil and gas, Eye on the Arctic
Finland: The Arctic Railway – Building a future, or destroying a culture?, Eye on the Arctic
Russia: Rosneft tells Putin new Arctic project will produce 30 million tons of oil by 2024, Eye on the Arctic
United States: Arctic refuge oil rights auction faces uncertain response, The Associated Press