Novatek, Gazprom Neft Plan Asset Swap: Press

Russia’s Novatek and Gazprom Neft aim to complete a swap of upstream assets in northern Russia by the end of this year, Gazprom Neft head Alexander Dyukov told reporters on October 9.

“Regarding the completion of the exchange transaction [with Novatek], the process is at the final stage; the last formalities remain,” Dyukov was quoted as saying by the Moscow-based Prime news agency. “We plan to conclude the work in this year.”

The assets involved in the swap are the Malo-Yamalskoye field, operated by Novatek, and the Yevo-Yakhinskoye and Severo-Chaselskoye deposits managed by Arcticgaz, a joint venture between Novatek and Gazprom Neft. Malo-Yamalskoye lies on the Yamal Peninsula near the mouth of the Ob river. Acquired by Novatek in 2010, it is isolated from the company’s other main assets in the area, located further north near the peninsula’s tip. However, Gazprom Neft’s Novoportovskoye field – one of its largest oil projects –is situated just 23 km southeast of Malo-Yamalskoye.

Yevo-Yakhinskoye and Severo-Chaselskoye are situated near the giant Urengoi gas field further south, where Novatek’s non-Arctic projects are concentrated.