Pursuant to the decision of the partners, Salym Petroleum Development N.V. (SPD) acquires from Gazpromneft Khantos and Gazpromneft-Invest 100% interest in the share capital of Salymsky-2 LLC in whose name the license for the block of the same name will be reissued. SPD will also act as the operator of the new development project.

The Salymsky-2 license block is located in the Khanty Mansiisk Autonomous Region. It has an area of 376 km2. The eastern part of the block adjoins the West Salym, Vadelyp and Upper Salym fields, which are being developed by SPD. There are no field-specific infrastructure facilities. However, close proximity to the areas, which are being developed by SPD, will have a synergistic effect, allowing efficient use of the existing SPD production facilities.

The deal will be closed after all the conditions precedent of the contract are met and in accordance with the laws applicable to the parties.

The Salymsky-2 block is still being studied; two appraisal wells have been drilled at the site. At the moment interpretation of geological information obtained from the earlier 3D seismic surveys is under way.

Cederic Cremers, Shell Country Chair Russia, said that “Shell fully supports the expansion of the Salym project. This support is based on SPD’s successful experience as an efficient field development operator and on the confidence in the reliability and professionalism of our partner, Gazprom Neft.”