Memorandum of Understanding on setting up a complex for utilisation of associated petroleum gas signed in Yugra
Today, on March 14, 2008 the Governor of Yugra Aleksandr Filipenko, CEO of Salym Petroleum Development N.V. Harry Brekelmans, First Vice President of OAO NK RussNeft Oleg Shchegolev and General Director of OOO Monolit Andrey Nepomniashchiy signed a Memorandum of Understanding on setting up a complex for associated petroleum gas utilization and generating capacities. This information was obtained by IA REGNUM at the press-service of the Governor of Khanty-Mansi Autonomous Okrug.
The Parties agreed upon the main principles of interaction for provision of the levels of associated petroleum gas utilization, stipulated by licenses, at the Salym (NK SPD) and Shapshinskoe (NK RussNeft) fields. For these purposes it is planned to build a Gas Processing Plant (GPP) and attendant infrastructures at the territory of West Salym field. OOO Monolit undertakes construction and operation of the facilities. One of the gas plant products, dry stripped gas, will be used to generate power required for production facilities of SPD and RussNeft. The surplus gas will be delivered to the gas transportation network. By the end of 2010 utilization of the associated gas from the licensed areas of SPD and RussNeft is expected to have reached 95%.
“It is a positive and efficient agreement implementing the concerns of all the participants of the project and a valuable precedent, for it enables us to use this pattern for solution of one of the most serious problems: utilization of associated gas” , said Aleksandr Filipenko, Governor of Yugra. “The very mechanism of the decision, consolidation of efforts, cooperation will lead the way for other companies in these field.”
The Chairman of the Board of Directors of OAO NK RussNeft Aleksandr Korsik said that everyone will benefit from the agreements –both the companies and the Autonomous Okrug, which would have been impossible without cooperation. “Though the main work on implementation of the intentions is still to be done, it is essential that the process has been triggered successfully. It has been due to the fact that such partnership was organized and sponsored by the Government of the Autonomous Okrug”, Korsik underlined.