Rosneft Buys SeverEnergia Stake from Enel (Russia)

Rosneft agreed to acquire a 40% stake in Arctic Russia B.V. from Enel, which will lead to Rosneft’s indirect ownership of a 19.6% stake in SeverEnergia. The stake will be acquired by NGK Itera, a subsidiary of Rosneft, which is a center consolidating gas assets within Rosneft group.

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.

The transaction is valued at 1.8 billion USD and its completion is subject to regulatory and other approvals.

The parties also 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”.

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LNG World News Staff, September 24, 2013