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| 18 October, 2017

Russia's Gazprom Neft eyes cooperation with Saudi Aramco in hard-to-recover oil

A general view shows the headquarters of Gazprom, with a board of Gazprom Neft, the oil arm of Gazprom seen in the foreground, on the day of the annual general meeting of the company's shareholders in Moscow, June 27, 2014.

A general view shows the headquarters of Gazprom, with a board of Gazprom Neft, the oil arm of Gazprom seen in the foreground, on the day of the annual general meeting of the company's shareholders in Moscow, June 27, 2014.

REUTERS/Sergei Karpukhin

Russia's Gazprom Neft will jointly work with the world's largest oil producer Saudi Aramco in hard-to-recover oil production, Gazprom Neft's head Alexander Dyukov said.

MOSCOW- Russia's Gazprom Neft SIBN.MM will work with the world's largest oil producer Saudi Aramco in hard-to-recover oil production and on a technology known as hydraulic fracturing, Gazprom Neft chief Alexander Dyukov said on Wednesday. Earlier this month, both companies signed an agreement on technological cooperation during a state visit to Russia by Saudi King Salman. urn:newsml:reuters.com:*:nL8N1MG1WO Dyukov said that the companies had pinpointed six spheres of cooperation, such as equipment localisation, to boost oil production and exploration. "We have to find the format of cooperation,... financing of the work," Dyukov said. Gazprom Neft, the oil arm of gas giant Gazprom SIBN.MM , is the fastest growing oil producer in Russia in terms of output. It is keen on production of hard-to-recover oil, a new source of crude output in the country. Dyukov also told reporters that Gazprom Neft expects its borrowings to rise to at least between 200 billion roubles and 210 billion roubles ($3.5 billion-$3.7 billion) next year without possible new funds for Messoyakha greenfield. "There could be additional borrowings, we have been in talks with the banks," he said. This year's borrowings are set at 77 billion roubles. ($1 = 57.3100 roubles) (Reporting by Olesya Astakhova; writing by Vladimir Soldatkin; editing by Mark Heinrich) ((vladimir.soldatkin@reuters.com; +7 495 775 12 42; Reuters Messaging: vladimir.soldatkin.thomsonreuters.com@reuters.net))