Gazprom, INK to Work Together in East Siberia

Gazprom is looking to work with east Siberian oil and gas producer Irkutsk Oil (INK) to develop hydrocarbon resources in the Krasnoyarsk region.

The pair signed a memorandum of intent on October 3 at the St Petersburg International Gas Forum. Under the agreement, they will consider co-operating in the exploration for, production, transportation, processing and sale of oil and gas at the Sobinskoye and Paiginskoye fields.

Sobinskoye is operated by Gazprom while the neighbouring Paiginskoye fields is INK's. Both deposits hold a mixture of oil, gas and condensate, according to state data.

INK, majority-controlled by businessman Nikolai Buynov, has traditionally focused on oil development, producing more than 180,000 b/d of crude last year. It has struggled to monetise its gas resources because of limited demand and scarce infrastructure. Meanwhile Gazprom wants to exploit more gas in east Siberia to underpin its Power of Siberia pipeline project to China as well as expand its domestic gasification programme.