MOSCOW, May 21 (UPI) -- Gazprom Neft, the oil arm of gas giant Gazprom, said Wednesday it signed an agreement with Eurasia Drilling Co. for onshore and offshore work in Russia.
Eurasia Drilling Co., the largest oil services provider in Russia, will take on as much as 30 percent of all the drilling operations carried out by Gazprom Neft and its subsidiaries.
"Long-term planning is essential to effective field development and bringing new reserves into production," Gazprom Neft Deputy Chief Executive Officer Vadim Yakovlev said in a statement. "This agreement with EDC guarantees that our plans will be supported by the production capacity required."
EDC said the deal, retroactive to January, calls for rigs and services in Russian territory. No value for the contract was offered by either side.
"The scope and pricing of the work will be adjustable, with the consent of both parties, in line with changing market conditions," Gazprom Neft said.
Gazprom Neft last week said hydrocarbon production during the first quarter of 2014 was 116.75 million barrels of oil equivalent, a 4.5 percent increase from the same time last year. The company attributed the increase to deploying new technology at mature fields and production growth from its assets in the Orenbrug region and the Yuzhno-Priobskoye fields.