Gazprom Neft and Shell have signed a Memorandum of Understanding setting out a framework for further cooperation in hydrocarbon exploration and production, technological collaboration and carbon footprint reduction. The MoU was signed on the sidelines of the St. Petersburg International Economic Forum in the presence of Vadim Yakovlev, Gazprom Neft, Deputy Chairman of the Management Board, and Cederic Cremers, Shell Country Chair Russia.

Both companies have confirmed their willingness to proceed with joint implementation of exploration and production projects in western Siberia, including the development of the Achimov, Paleozoic and Jurassic hydrocarbon deposits. Thus, the parties have come to an agreement on sharing best practices on an ongoing basis, as well as looking for new opportunities for joint working. The partners will also continue discussing their cooperation in developing the Ayashsky license block in the Sea of Okhotsk.

Gazprom Neft and Shell intend to combine their efforts in implementing decarbonization projects. To this end, the companies are planning to look into the possibility of deploying carbon capture, utilization & storage (CCUS) solutions at their JV assets. Besides, both companies will discuss the possibility of using technology solutions for production of hydrogen via steam reforming of natural gas coupled with carbon capture.

The partners plan to extend technological cooperation in developing hard-to-recover reserves. A further key area for activity will be finding solutions for carbon footprint reduction and further improving projects’ environmental sustainability.

Vadim Yakovlev Deputy Chairman of the Management Board, Gazprom Neft, commented:
“Gazprom Neft and Shell are bound together by more than a decade of successful collaboration both on large-scale exploration & production projects and on the technology side. The new MoU sets out the principal areas of work in which we wish to further develop our strategic partnership in the years to come.”

Cederic Cremers, Shell Country Chair Russia, added:
“We welcome extension of our cooperation with GPN, our long-time reliable and trusted partner, to areas in which we can join our forces, experiences and expertise in reducing the carbon footprint of our operations. I believe our two companies together can really make a difference in this critical area.”

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