Lavrov warns against partition of SyriaRussian Politics & Diplomacy September 23, 0:00
Lavrov calls to coordinate Russian, US military action in SyriaRussian Politics & Diplomacy September 22, 21:05
Lavrov blames Obama administration for souring Russia-US tiesRussian Politics & Diplomacy September 22, 20:41
Waging war on Korean Peninsula inadmissible, says LavrovRussian Politics & Diplomacy September 22, 20:36
Russian Northern Fleet completes drills in ArcticMilitary & Defense September 22, 18:01
OPEC and non-OPEC countries to continue talks on oil production cut dealBusiness & Economy September 22, 17:28
Russian pair figure skaters Kavaguti, Smirnov retire from sportSport September 22, 16:48
Record number of delegations register for St. Petersburg-hosted IPU AssemblyRussian Politics & Diplomacy September 22, 16:47
Astronauts to make quickest trip ever to ISS in DecemberScience & Space September 22, 16:27
MOSCOW, July 2 (Itar-Tass) - Russia’s state-owned oil company Rosneft and members of ITERA Oil and Gas Company LLC have acquired the remaining 49 percent of ITERA Oil and Gas Company LLC from Itera Holdings Limited for 2.9 billion U.S. dollars.
As a result, Rosneft increased its share in Itera Oil and Gas Company LLC to 100 percent.
Consolidation of ITERA Oil and Gas Company LLC improves business efficiency and creates new opportunities for its growth. It forms a stable platform for consistent implementation of Rosneft’s gas strategy aimed at gas production increase to 100 bcm per annum and transformation of Rosneft into the largest independent gas producer in the Russian Federation.
Following the deal, Rosneft will be able to accelerate development of the Kynsko-Chaselsk group of fields. Commenting on the deal, President of Rosneft Igor Sechin said: “Gas business is one of the top priorities for the Company. Consolidation of ITERA Oil and Gas Company LLC will have a significant multiplier effect on our future growth and generate additional synergies, which will ultimately increase the total capitalisation of the Company and bring additional value to shareholders”.
“We will continue our cooperation with Rosneft. There are a number of international and other projects with a potential of further development” Igor Makarov, the owner of Itera Holdings Limited, said.
In August 2012, Rosneft and ITERA Oil and Gas Company completed the deal to create a joint venture based on ITERA Oil and Gas Company LLC to produce and sell gas. Rosneft obtained 51 percent in the joint venture in exchange for a 100 percent 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 U.S. dollars.
Rosneft obtained 51 percent in the joint venture in exchange for a 100 percent 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 U.S. dollars. This amount 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 amount to 427.2 bcm of gas and 25.8 million tonnes of liquid hydrocarbons. The JV’s forecast gas output in 2013 is approximately 13 bcm.
The joint venture’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 monetise gas and ensure the implementation of Rosneft’s strategic programme to begin developing sizeable gas reserves.”
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.
The joint venture’s Itera Holdings Limited is part of the international group of companies “ITERA” which consolidate assets of Igor Makarov. The holding company includes enterprises and companies in the CIS, Baltic countries, Western Europe, Asia and the United States. Besides gas business, the group also focuses on development, chemical utilisation of natural gas and utilities.
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 U.S. dollars in the gas production sector. ITERA was the first private company to put gas deposits in the north of Russia into service, Rosneft said.