Chevron backs out of Gazprom Neft venture

Feb. 26, 2009 at 9:52 AM
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MOSCOW, Feb. 26 (UPI) -- Gazprom Neft, the oil arm of energy monopoly Gazprom, reports U.S.-based supermajor Chevron pulled out of two oil fields in Siberia because of low potential.

Gazprom Neft and Chevron Neftegaz, its Russian unit, formed a joint venture in 2006 to explore the Pyakutinsky and Aikhettinsky fields. Both fields were expected to hold close to 330 million barrels of recoverable oil reserves.

Both companies said in June they halted activity in the Siberian fields because of low expectations, and Chevron confirmed it had pulled out of the venture in August, The Moscow Times reports Thursday.

Chevron's decision to abandon its 25-percent stake in the fields leaves Gazprom Neft with the entire share in the project. Chevron, however, issued a statement saying it remains interested in future partnerships with the company.

"Chevron expects to find interesting joint projects in the future," it said. "Gazprom Neft is also interested in developing partnerships with different companies, including Chevron."

Gazprom Neft reported earlier in February its oil production for 2008 was down 5.8 percent, compared with the year prior.

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