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.
ConocoPhillips continues to find ways to improve through the use of refracs, simul-fracs and other technologies, says Jack Harper, former Concho exec now leading Conoco’s Permian Basin team.
In the Lower 48 Big 3—Eagle Ford, Bakken and Permian Basin—ConocoPhillips plans to grow production by about 19% this year.
The view stands in contrast to that of rival BP Plc, which sees the coronavirus pandemic leaving a lasting effect on global energy demand, though ConocoPhillips still expects "quite a bit of uncertainty next year."