OREANDA-NEWS. September 28, 2016. The Gazprom Board of Directors took notice of the information about the progress of the joint project for the development of the Parusovoye, Severo-Parusovoye and Semakovskoye fields located in the Yamal-Nenets Autonomous Area.

It was highlighted that the work was underway to set up a joint project company as stipulated by the Master Agreement on the projects terms and conditions signed by Gazprom and RusGazDobycha.

The Board of Directors tasked the Management Committee to continue the project.

The Board of Directors approved the Long-Term Development Program of Gazprom.

The Board of Directors also considered the information about the assessment of the tax maneuver impact on Gazprom Group in the first half of 2016.

Background

In September 2016, Gazprom and RusGazDobycha entered into the Master Agreement regarding the joint project for the development of the Parusovoye, Severo-Parusovoye and Semakovskoye fields. Among other things, the Agreement provides a framework for the establishment and operation of a project company, sets out the profitability targets of the future project and the marketing concept, including the principles of selling the produced natural gas, and contains a list of activities to be carried out during the preparatory phase prior to the final investment decision.

As agreed between the parties, Gazproms wholly-owned subsidiary Gazprom Dobycha Yamburg, as the field development license holder, and RusGazDobycha will establish the RusGazAlians project company on equal terms. During the preparatory phase, the project company will conduct an investment feasibility study, perform design and survey work, and compile design documents for the pre-development of the fields and the construction of transportation infrastructure to be connected with Gazproms gas transmission system. RusGazAlians will also select potential contractors and fix the terms for the purchase of natural gas with future buyers.

As an outcome of the above, the parties will determine the project architecture, the scope of investments, and the financing structure. If the project conforms to the parameters outlined in the Master Agreement, the final investment decision will be made.