Russian entities and GHK Co., Oklahoma City, have signed a joint venture agreement that will lead to Russia's first integrated oil and gas company.
The agreement is among GHK and Russia's Samara province, Kuibyshevneft, and LogoVAZ.
GHK is an independent oil and gas operator, Kuibyshevneft is Samara's oil and gas production company, and LogoVAZ, Moscow, is a private trading, banking, and real estate affiliate of the VAZ automobile company, Tagliatti, Russia.
GHK said the first order of business is to immediately begin to restore production from 111 shut-in wells in Pervomayneft, where one of Samara's giant oil fields is located, in a program estimated to cost $15-20 million.
The agreement previously was in the form of a protocol (OGJ, Mar. 23, p. 28).
Now, the formal agreement also provides for the founding of a Russian joint stock company Sept. 1. The new company, Econergenics Ltd., will deal at first with all aspects of the oil and gas industry: exploration, production, refining, and sales of refined products and natural gas. It also will provide technology for environmental restoration and energy conservation and efficiency.
The agreement was signed in conjunction with development of a multifaceted relationship between Oklahoma and Samara for educational and technological exchange that will concentrate at first on agriculture, energy, and the environment.
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