Rosneft, ITERA Finalise Gas JV

Rosneft and the ITERA Group have officially closed a deal announced in February this year to set up a joint venture, to produce and sell gas from each other's assets.

Through the joint venture, in which Rosneft takes a 51 per cent stake and ITERA a 49 per cent stake, both companies will gain access to several of each other's assets for the purpose of jointly exploring and selling gas. These assets include ITERA's 49 per cent stake of Sibneftegaz, 49 per cent stake of Purgaz and 67 per cent stake of Uralsevergaz, and Rosneft's deposits in the Kynsko-Chaselsk block. 

Rosneft brings its 100 per cent of its subsidiary, Kynsko-Chaselskoye Neftegaz, to the joint acquisition in order to acquire its 51 per cent stake in the new joint venture. Kynsko-Chaselskoye Neftegaz holds the rights to the Kynsko-Chaselskoye block in Russia. The company also paid a cash consideration of $173.4 million to enter the deal.

The combined reserves from both companies' assets are estimated to total 372.4 billion cubic metres of gas and 15.7 million tonnes of liquid hydrocarbons (consolidated proved and probable (2P) reserves).

Gas output for next year is expected to reach 13 billion cubic metres.

"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," President of Rosneft Igor Sechin said.