Gazprom Neft and Mitsui to Evaluate Prospects for Cooperation in Development of Offshore Fields in Sakhalin

Gazprom Neft and Mitsui signed a memorandum of understanding at St. Petersburg International Economic Forum. The parties agreed to discuss the cooperation opportunities of the shallow shelf project development in the island of Sakhalin*. The document was signed by Hirotatsu Fujiwara, Senior Executive Managing Officer and Chief Compliance Officer, Mitsui & Co., Ltd and Andrey Patrushev, Deputy General Director of Offshore Projects Development, Gazprom Neft.

On photo (from left to right): Andrey Patrushev, Deputy General Director of Offshore Projects Development, Gazprom Neft and Irotatsu Fujiwara, Senior Executive Managing Officer and Chief Compliance Officer, Mitsui & Co., Ltd

Gazprom Neft possesses a broad portfolio of the offshore assets in Russia, and Mitsui, one of Japan’s largest trading and investment companies, will consider the synergy of their expertise and know-how in exploration and production projects.

The Ayashsky license block in the Sea of Okhotsk

“The development of relations with the world’s largest financial and industrial conglomerates, mutually beneficial exchange of the expertise and technologies helps Gazprom Neft to improve the efficiency of its operations in the license areas of the company. Together with Mitsui, we are interested in implementing high-tech projects on the Russian continental shelf, and the Sakhalin project is one of the most promising for our potential cooperation,” commented Andrey Patrushev, Deputy General Director of Offshore Projects Development, Gazprom Neft.

Reference

* Development project of the Ayashsky license block, located in the Sea of Okhotsk in the northeastern part of the Sakhalin shelf, 55 km from the shoreline. The sea depth of the first well’s drilling site is 62 m. The area earlier was checked with 3D seismic exploration works over 2,150 sq. km.

Gazprom Neft is a vertically integrated oil company. Core business activities are exploration and development of the oil and gas fields, oil refining, production and sale of the petroleum products. Gazprom Neft structure includes more than 70 oil producing, refining and sales enterprises in Russia, CIS and other countries.

In terms of proven and possible hydrocarbon reserves volume — 2.78 billion tonnes of oil equivalent according to the international standards SPE-PRMS, Gazprom Neft is among the 20 largest oil and gas companies in the world. In terms of the oil production and refining Gazprom Neft is one of the three largest companies in Russia. In 2017 the company produced 89.75 million tonnes of oil equivalent; the refining volume reached 40.1 million tonnes.

Products by Gazprom Neft are exported to more than 50 countries and sold throughout Russia and abroad. The company’s gas station network includes more than 1,850 units in Russia, CIS, and Europe.

At the end of 2017, the net profit of Gazprom Neft amounted to RUB 253 billion, showing an increase of 26.5 % by 2016. The company is the industry leader in terms of the financial indicators growth rates, as well as in such a complex index as the internal rate of return.

The main shareholder of the company is Gazprom PJSC (95.68 %). The remaining shares are in free float.

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