Bashneft wins auction for two blocks in Nenets region

By Vladimir Afanasiev

 24 February 2012 01:34 GMT

RUSSIAN regional oil producer Bashneft has won an auction for two blocks in the Nenets autonomous region in the north of the country after committing to pay a total of $150 million for the assets, writes Vladimir Afanasiev.

Analysts in Moscow were puzzled by the determination of the company to obtain the 25-year exploration and development licences for the blocks at such a cost despite question marks over the blocks’ resources.

According to the Russian reserve classification system, possible resources at the first block, Yangareysky, are about 190 million barrels of oil, while probable resources of the second block, Sabriyaginsky, are estimated at a meagre 15 million barrels.

Bashneft implied that the acquisition of these two blocks fit into its expansion strategy in the Nenets region, which hosts one of Russia’s…

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