Gazprom Neft Scores Equa G Blocks

Gazprom Neft, a unit of Russian gas giant Gazprom,has entered into a PSA with the government of Equatorial Guinea. The PSA is for two offshore blocks.

While the identity of the blocks was not reported, news reports have the Russian firm holding an 80% stake in the blocks. Gazprom will be partnered with state-run GEPetrol which has back in rights to 45% of the blocks once production begins.

The two offshore blocks are said to hold an estimated 110 million tons of oil.

Investment in the project may reach $3 billion in the next 25 years, the Russian firms Chief Executive, Alexander Dyukov said. The first exploration wells will be drilled two years after the agreement with GEPetrol comes into effect.