Rosneft and ITERA Group Close Deal to Create Joint Venture to Produce and Sell Gas

abarrelfullabarrelfull wrote on 07 Aug 2012 19:45
Tags: c-asia deals itera rosneft russia upstream

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Rosneft and ITERA Group have closed a deal to create a joint venture on the basis of ITERA Oil and Gas Company to produce and sell gas in line with the terms of a strategic cooperation agreement signed on 28 February 2012. Rosneft obtained 51% in the joint venture in exchange for a 100% stake in the charter capital of Kynsko-Chaselskoye Neftegaz (which owns the license for the Kynsko-Chaselsk license block) and a cash consideration of $173.4 million. This sum may be adjusted following an analysis of the financial results of ITERA Oil and Gas Company, its subsidiaries and affiliates and Kynsko-Chaselskoye Neftegaz as of the deal completion date.

The joint venture’s consolidated proved and probable (2P) reserves under international classification will total 372.4 billion cubic metres of gas and 15.7 million tonnes of liquid hydrocarbons. The JV’s forecast gas output in 2013 is approximately 13 billion cubic metres. Rosneft President Igor Sechin said of the deal: “Combining the gas assets of the two companies into a joint venture opens up new opportunities to monetize gas and ensure the implementation of Rosneft’s strategic programme to begin developing sizeable gas reserves.”

Notes for editors

Rosneft is a Russian oil major and one of the world’s top publicly traded oil and gas companies. The company is primarily engaged in the exploration and production of oil and gas and the production and sale of petroleum products and petrochemicals.

Kynsko-Chaselsk is a license block in the Krasnoselkupsk region of the Yamalo-Nenets autonomous district. The Kynsko-Chaselsk license block comprises six deposits: Kynskoye, Fakhirovskoye, Novo-Chaselskoye, Naumovskoye, Ust-Chaselskoye and Verkhne-Chaselskoye.

ITERA Oil and Gas Company is one of the largest independent producers and sellers of natural gas in Russia. ITERA has been developing its own gas production in the Yamalo-Nenets autonomous district since 1998. The company has invested over $2 billion in the gas production sector. ITERA was the first private company to put gas deposits in the north of Russia into service.

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