Shelf benefits are not enough for Gazprom – the level of profitability of the Prirazlom field doesn’t suit it

Gazpromneft shelf, which develops the Prirazlom field in the Pechora Sea, wants to receive new benefits for its project, because the current profitability level of 15% doesn’t suit it. The Ministry of Energy is unlikely to agree for additional benefits now, but another large shelf player – Rosneft – may support the stand of Gazpromneft.

Gazpromnef wants to receive additional benefits for its first project on shelf of the Arctic – the Prirazlom field. As the Deputy General Director of Gazpromneft shelf (it implements the project) Nikita Limonov stated yesterday, “the company works with government agencies to prepare an initiative on he granting additional benefits”. According to him, now the internal index of the project profitability is estimated at 15.4%, but “this may be insufficient”. As Gazpromneft shelf notes, the company faces the task to increase the profitability index to 16-17%.