Bloomberg News

Gazprom Neft Seeks Producers From Shell Deal, Refining From Eni

October 28, 2011

OAO Gazprom Neft, the oil producer controlled by Russia’s natural gas exporter, seeks production assets from Royal Dutch Shell Plc (RDSA) and shares in a German refinery from Eni SpA (ENI) as it pursues expansion plans.

Gazprom Neft will offer production assets and look for crude projects, not refining assets, in return as it examines a venture combining assets with Shell, Alexander Dyukov, chief executive officer, told reporters today in Moscow.

The oil producer has sought a stake in PCK Raffinerie GmbH’s oil refinery in Schwedt, Germany, via negotiations with Eni, Dyukov said.

The talks may help Gazprom Neft reach a target to produce 100 million metric tons of oil and gas by 2020. Gazprom Neft will need to make acquisitions to meet that goal as output from existing projects will allow it to reach 80 million to 90 million tons.

A Japanese or a Korean partner may join a project to explore for oil and gas at the Chonsk blocks in East Siberia to divide geological risk, he said. Chonsk fields may hold 125 million tons of oil and 225 billion cubic meters of gas, according to the Gazprom Neft website.

Gazprom Neft remains interested in dividing assets with TNK-BP in its shared OAO Slavneft venture, he said.

To contact the reporter on this story: Stephen Bierman in Moscow sbierman1@bloomberg.net.

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net.


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