Rosneft unit acquires 40% stake in Arctic Russia for $1.8B

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Rosneft on Sept. 24 said its NGK Itera subsidiary has entered an agreement to acquire a 40% stake in Arctic Russia B.V. from Enel.

Following the acquisition, Rosneft will become an indirect owner of a 19.6% stake in SeverEnergia.

SeverEnergia is a joint gas production venture with assets in Yamal-Nenets Autonomous Region of Russia. Yamal Development, a joint venture of Novatek and Gazprom Neft, owns 51%, while Arctic Russia B.V., a joint venture between Italian Eni and Enel, owns 49% stake in SeverEnergia.

Under the terms of the agreement, NGK Itera will buy stake in a transaction is valued at $1.8 billion.

The deal is subject to regulatory and other approvals.

SeverEnergia owns licenses for 9 fields, of which 4 largest are Samburgskoye, Yaro-Yakhinskoye, Yevo-Yakhinskoye and Severo-Chaselskoye. Proven and probable reserves stand at 7.3 billion BOE.

The transaction will help considerably increase Rosneft recoverable gas reserves, and will create a solid ground for consistent implementation of the company’s gas strategy, aimed at gas production increase to 100 BCM per year and transformation of Rosneft into the largest independent gas producer in Russia.

In addition, the parties continue to work actively on developing cooperation in the area of gas supplies.

Commenting on the agreement signed, Igor Sechin, Rosneft President and Chairman of the Management Board, said:

“Gas business is one of the Company’s strategic development priorities. Acquisition of a stake in SeverEnergia will create a multiplying effect for further growth, it will help generate additional synergies from the joint asset development within the Yamal Gas Cluster through optimization of capex and sales channels, it will also help the Company in the long run to expand contracted gas deliveries, increasing the Company’s market cap and raising shareholder value,” stated Igor Sechin, Rosneft president and chairman of the management board.

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