Rosneft puts up cash for Itera JV

Joint venture: Rosneft president Igor Sechin

REUTERS

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Steve Marshall

 06 August 2012 10:18 GMT

Rosneft has revealed that it is paying $173.4 million to Itera Oil & Gas, as well as contributing Russian gas field licences, as the pair closed a deal on Monday to form a new joint venture for gas exploitation and marketing.

The Russian state oil company will hold a 51% stake in the alliance in exchange for the cash sum and pooling into the joint venture its Kynsko-Chaselsk licence block in the Yamal-Nenets region that includes six gas deposits with estimated recoverable reserves of about 300 million barrels of oil and 284 billion cubic metres of gas.

Itera, for its part, will contribute almost all of its shareholdings in gas developments in Russia, including 49% stakes in producers Sibneftegaz and Purgaz and a 67% shareholding in regional gas distributor Uralsevergaz-NGK.

The cash payment may be adjusted following an analysis of Itera’s financial…

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