OREANDA-NEWS. Gazprom Neft has announced the signing of a three-year framework agreement on drilling and well reconstruction with leading CIS onshore and offshore drilling service provider Eurasia Drilling Company Limited (EDC). Under the terms of this agreement, Gazprom Neft has estimated the full range of drilling services required by its subsidiary production companies, to be provided by EDC's regional affiliates. EDC guarantees the required capacity and technological performance of its equipment. The agreement also outlines a pricing formula for the work. The scope and pricing of the work will be adjustable, with the consent of both parties, in line with changing market conditions.

Both parties emphasised their interest in long-term cooperation to further improve technological standards of well-drilling services in Russia, consistent with international best practice. EDC is expected to undertake approximately 25-30 percent of all of the drilling works of Gazprom Neft subsidiaries.

First Deputy CEO Vadim Yakovlev commented: “Long-term planning is essential to effective field development and bringing new reserves into production. This agreement with EDC guarantees that our plans will be supported by the production capacity required.”