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.
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