RUSSIA’S Gazprom and Royal Dutch Shell are to swap oil and gas assets in Eastern Russia – signing a Memorandum of Understanding regarding the Zapolyarnoye–Neocomian field and Sakhalin-II projects.

Gazprom management committee chairman Alexey Miller and Royal Dutch CEO Jeroen van der Veer late last week sealed the deal that will provide Gazprom and Shell with 25%, plus one share, in the Sakhalin-II project and a 50% in Zapolyarnoye – Neocomian field, respectively.

Identified differences in value will be offset by cash or other agreed assets, with the final round of preparations to be overseen by a steering committee of Gazprom and Royal Dutch Shell representatives, and joint working groups.

Miller said Gazprom would become a prominent player in the LNG sector and gain access to new markets through the deal, which opened up the possibility of Gazprom acquiring substantial ownership in hydrocarbon extraction and LNG production and marketing to North America and the Asia-Pacific region.

Van der Veer said Gazprom would make a large contribution to the strategic development of Sakhalin-II and that by jointly developing the Neocomian deposits of the Zapolyarnoye field the parties’ Western Siberian operations would be supported.

The MOU would also foster stronger ties between the two energy giants, setting the stage for greater co-operation regarding further integrated gas projects in Russia and elsewhere in the world, van der Veer added.