Gazprom Neft and Royal Dutch Shell have agreed to create a joint venture (JV) focused on developing oil fields in Yamal, the Russian company said in a news release June 6.

Each company will hold 50% stakes in Meretoyakhaneftegaz, which holds licensing rights to the Meretoyakhinskoye Field. The JV’s portfolio will also include Tazovsky and Severo-Sambrugsky along with two Zapadno-Yubileiny blocks, Gazprom Neft said.

The fields are estimated to hold reserves of about 1.1 billion tonnes of oil.

Plans are for the deal to be finalized late this year or early 2020.