By Joe Hoppe
Novatek said Friday that it has formed a joint venture with Gazprom Neft to conduct exploration work on the North-Vrangelevskiy License Area, in the eastern part of the East Siberian Sea.
The Russian energy company said the agreement builds on a prior arrangement signed by both parties in June 2019 for joint Arctic development. The parties plan to conduct exploration work on a parity basis on the license, which is located in the eastern part of the East Siberian Sea and the western part of the Chukchi Sea.
"We have a solid background for efficient operations on this new prospective project: successful track record of joint projects implementation with Gazprom Neft, our experience in navigating the Northern Sea Route as well as the measures taken by the Government of the Russian Federation to ensure year-round navigation along the NSR," Novatek Chairman Leonid Mikhelson said.
Shares in Novatek at 0751 GMT were up two rubles (2.74 U.S. cents), or 0.1%, at RUB1,553.0, while shares in Gazprom Neft were down RUB0.6, or 0.2%, at RUB406.05.
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(END) Dow Jones Newswires