PetroNeft offloads Russia stake

Oil and gas producer PetroNeft Resources will today confirm partner Arawak Energy has exercised an option to acquire a 50 per cent stake in its Ledovy Licence project in Russia, following a technical and commercial review. PetroNeft will remain as operator of the project, located to the west of the Ob River, while all costs and future income will be shared between the two companies on an equal basis. The Aim-listed firm believes the project has the potential to yield 55m barrels of oil. “This quick decision is an important and encouraging technical endorsement of the [project’s] potential,” said PetroNeft chief executive Dennis Francis.