Gazprom Neft signs long-term cooperation agreement with drilling and well services contractor Eurasia Drilling Company

Gazprom Neft has announced the signing ofathree-year framework agreement ondrilling and well reconstruction with leading CIS onshore and offshore drilling service provider Eurasia Drilling Company Limited (EDC). Under the terms ofthis agreement, Gazprom Neft has estimated the full range ofdrilling services required byits subsidiary production companies, tobeprovided byEDC’s regional affiliates. EDC guarantees the required capacity and technological performance ofits equipment. The agreement also outlines apricing formula for the work. The scope and pricing ofthe work will beadjustable, with the consent ofboth parties, inline with changing market conditions.

Both parties emphasised their interest inlong-term cooperation tofurther improve technological standards ofwell-drilling services inRussia, consistent with international best practice. EDCis expected toundertake approximately 25–30 percent ofall ofthe drilling works ofGazprom Neft subsidiaries.

First Deputy CEO Vadim Yakovlev commented: “Long-term planning isessential toeffective field development and bringing new reserves into production. This agreement with EDC guarantees that our plans will besupported bythe production capacity required.”

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