Gazprom, Rosneft Receive Blocks in East Siberian Sea

December 17, 2013

Gazprom and Rosneft have received permission to use more blocks for geological exploration and hydrocarbon production, Prime has reported, citing a decision by the Russian Federation government.

In line with Russian legislation, the two companies received the blocks without auctions as companies having no less than five years of experience in offshore exploration. Gazprom received the 117,620 sq km North-Vrangelevsky block in the East Siberian and Chukotka seas.

Rosneft will produce hydrocarbons at the East Siberian block whose area totals 187,400 sq km. Gazprom will have to pay RUR 1.16bn for using the block and Rosneft will have to pay a lump sum of RUR 789.5 million.

Copyright: TsDU TEK, 2013