Gazprom Neft considers shale oil project

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MOSCOW, Oct. 30 (UPI) -- The oil arm of Russian energy company Gazprom announced plans to review shale oil production at an oil field in western Siberia.

Gazprom Chief Executive Officer Alexei Miller said oil division Gazprom Neft would work with Shell to outline a plan for shale oil production in the Upper Salym oil field in western Siberia.

"In contrast to shale gas extraction, tight oil production is of considerable interest for Gazprom Group and we will work actively on this issue," he was quoted by state-run news agency RIA Novosti as saying.

Shell and Gazprom Neft formed a joint venture, Salym Petroleum Development, for work in the oil field.

Russian President Vladimir Putin has said companies need to reconsider resource development plans given shale resource developments in the United States.

Analysis published last week by research company IHS said the shale oil and natural gas sector in the United States could contribute nearly $500 billion to the U.S. gross domestic product by 2035.

Gazprom Neft said shale formations more than 1 mile underground are saturated with oil but offered no estimate on reserve potential.