Gazprom Neft sees technical synergies with Abu Dhabi gas program

Gazprom Neft, the oil and gas exploration arm of Russian gas company Gazprom, expects oil prices to average $ 50 a barrel. The company also sees possible opportunities in sharing its technical expertise in developing the UAE’s gas reserves, its deputy managing director said.

“When we talk about our strategic plans and long-term goals, we’re pretty conservative and take the long-term price tag to be $ 50. [per barrel]”said Vadim Yakovlev The National in an interview.

“If $ 50 a barrel stays at $ 50 a barrel, our portfolio will remain sustainable,” he said.

Opec +, the supergroup of oil producers behind a historic pact to restrict supplies led by Saudi Arabia and Russia, “ensures a stable situation in the market,” he said. declared.

“And I don’t think the member countries of the agreement are interested in a further price increase.”

The group wants to put 2 million barrels a day back on the market by the end of the year. The alliance will meet on October 1 to consider whether to put 400,000 bpd back on the market for the month. The group of exporters are optimistic about global oil demand, expecting consumption to reach 100.8 million barrels per day in 2022.

Yakovlev anticipates “short-term deviations” from their expected price levels but expects the group to make an effort to keep prices fairly conservative.

“The members of the accords have already demonstrated time and again that they can manage quickly and act on this right way to stabilize the situation,” he said.

In the longer term, he expects oil prices to be influenced by investment decisions made by global policymakers.

On Tuesday, OPEC Secretary General Mohammed Barkindo said crude oil prices were affected by a “transition premium” as part of the switch to renewables, in addition to supply and market fundamentals. global demand.

Barkindo’s comments follow a call from the International Energy Agency to halt all investments in fossil fuels and limit sales of internal combustion-engined passenger cars in order to meet global targets for net zero by 2050.

Gas prices have also increased 96% year-to-date, amid fears that the rapid decarbonization of global energy systems will leave millions of people facing energy poverty due to rising gas prices. ‘energy.

“The constraints imposed on producers will make it difficult to invest, and this may entail certain premiums or certain risks,” Mr. Yakovlev said.

“The world needs energy in increasing volumes.”

In Abu Dhabi, Gazprom Neft is looking for opportunities to provide expertise in “low permeability” gas reservoirs, as the emirate seeks to unlock large reserves of unconventional gas.

In 2019, the Abu Dhabi National Oil Company announced the discovery of additional reserves of 7 billion barrels of oil, 58 trillion cubic feet (tcf) of conventional gas and 160 tcf of unconventional gas. This propelled the UAE to the top of the rankings in terms of hydrocarbon reserves, according to data from the US Energy Information Administration. Last year, the United Arab Emirates also announced the discovery of 80 tcf of shallow gas reserves in an area between Abu Dhabi and Dubai – the largest find in 15 years.

“We have acquired significant expertise in the field of working with low permeability gas. We are therefore open to sharing experience,” said Mr. Yakovlev.

In Western Siberia, where Gazprom Neft is part of a joint venture to develop fields with Mubadala and the Russian Direct Investment Fund, the company plans to double the size of its current reserves.

“The current production level is 45,000 bpd. And there is potential to increase the reserve base of this asset. Once you find them. It’s not a big task. It is. a fairly ordinary task to develop them to produce, “he said. .

Update: September 25, 2021, 9:32 a.m.

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