Gazprom Neft and Shell decided to cancel the deal on the creation of a parity joint venture Meretoyakhaneftegaz to develop five sites in the Yamalo-Nenets Autonomous Okrug with investments of 130 billion rubles. The deal was announced last year and has already been put on the agenda for a future meeting of the Foreign Investment Commission. Gazprom Neft assures that the project will continue to be implemented in accordance with the established plan, although without a foreign partner. Shell explains the cancellation of the transaction as "the negative impact of external factors."
Gazprom Neft announced the termination of the deal with the Anglo-Dutch Shell on joint development of fields in the Yamal-Nenets Autonomous Area. The Shell report also states that the deal will not be completed due to “negative effects of external factors”. The parties announced a deal a year ago at the St. Petersburg Economic Forum. The parties were supposed to create a joint venture based on the Gazprom Neft Meretoyakhaneftegaz structure. In addition to the Meretoyakhinsky field, the Tazovsky, Severo-Samburgsky and two West-Yubileiny sections were supposed to enter the joint venture. The geological reserves of the project were estimated at 1.1 billion tons. Initial investments were estimated at 130 billion rubles., The maximum level of production - at 10 million tons of oil equivalent.
Gazprom Neft announced that it will continue to implement the project “in accordance with the previously approved work plan”. The decision on the deal will not affect cooperation with Shell on other projects, the company added.
In November 2019, the transaction was submitted to the foreign investment committee, but it postponed consideration, requesting further clarification. At the same time, the FAS told Kommersant that the commission as a whole approvingly approached the deal. In March, the head of the service, Igor Artemyev, said that the deal was on the agenda for consideration by the commission, but the date of the commission was never announced publicly.
Against the backdrop of a sharp drop in oil prices, Shell announced at the end of March that it would reduce investments this year by 20% to $ 20 billion. The company also intends to reduce operating expenses by $ 3-4 billion over the next 12 months compared to 2019.