Gazprom Neft and Shell signed a memorandum of understanding (MoU) on June 4 concerning a number of upstream and midstream projects within Russia and establishing a joint venture.

Under the MoU, the companies have confirmed their intention of continuing negotiations on upcoming operations of Khanty-Mansiysky Oil and Gas Union and Salym Petroleum Development in Eastern Siberia, two upstream joint ventures in which Gazprom Neft and Shell are participating on a parity basis. These include provisional assessment of a range of non-shale oil deposits in Eastern Siberia, including the Achimovsky deposits in the Yamalo-Nenets Autonomous Okrug, by the Khanty-Mansiysky Oil and Gas Union and geological prospecting of license blocks in the Khanty-Mansiysk Autonomous Okrug, adjoining licence blocks owned by Salym Petroleum Development, through that enterprise.

In the midstream segment, the two companies also agreed to set up another joint venture to secure financing for and carry out the design, construction and operation of the Baltic LNG project, a planned LNG plant in the St. Petersburg Region.

In addition to the MoU, the companies have also signed a joint study framework agreement on the project, which will allow them to start developing preliminary project documentation as soon as possible.