Spain’s Repsol has pulled out of a planned joint venture to develop two Arctic oil blocks with Russia’s Gazprom Neft and Royal Dutch Shell, a spokesman at Repsol said May 22.
Gazprom Neft, the oil arm of Russian gas giant Gazprom, Repsol and Shell signed a memorandum of understanding last June on establishing a joint venture to develop the Leskinsky and Pukhutsyayakhsky blocks on the Gydan Peninsula in northern Siberia.
A deal on the venture, in which Gazprom Neft would hold a 50% stake and Repsol and Shell each own 25%, was expected to close this year.
“It’s an option we had on a well we are choosing not to exercise,” Repsol’s spokesman said.
A source at Gazprom Neft said the Russian company will continue to cooperate with Shell on the assets.
“Repsol has informed Gazprom Neft that at the moment, it does not consider a possibility of participation in the project,” the source said.
Gazprom Neft declined to comment.
Recommended Reading
US Expected to Supply 30% of LNG Demand by 2030
2024-02-23 - Shell expects the U.S. to meet around 30% of total global LNG demand by 2030, although reliance on four key basins could create midstream constraints, the energy giant revealed in its “Shell LNG Outlook 2024.”
US Oil Stockpiles Surge as Prices Dip, Production Remains Elevated
2024-02-14 - EIA reported crude oil stocks increased by 12.8 MMbbl as February began, far outstripping expectations.
Oil Prices Edge Up on Big US Crude Withdrawal, China Stimulus
2024-01-24 - U.S. crude storage withdrawal, Chinese economic stimulus and geopolitical tensions countered concerns over tepid demand.
What's Affecting Oil Prices This Week? (Jan. 8, 2024)
2024-01-08 - For the upcoming week, Stratas Advisors predicts oil prices will bounce upwards with geopolitical news, but the price increase will quickly fade as the oil continues to flow.
Oil Dips as Demand Outlook Remains Uncertain
2024-02-20 - Oil prices fell on Feb. 20 with an uncertain outlook for global demand knocking value off crude futures contracts.