tie in to Gazprom9 Nov 2007 11:30
Oil & Gas. Timan Oil & Gas makes strategic alliance with Gazprom subsidiary
Gazprom's largest subsidiary, Zapsibgazprom, signed an MOI to set up a strategic partnership to explore and develop oil and gas fields with Timan Oil & Gas Plc (TOG), Reuters reports. The memorandum envisages a $500mn investment and technological support for E&D activity at TOG's fields in Timan-Pechora and the Caspian Sea shelf. It also allows Zapsibgazprom to acquire a stake in TOG.
We expect the partnership with Gazprom to prove a clear positive for TOG, as it would enhance the independent's administration resources and add momentum to TOG's E&D activity thanks to the $500mn investment.
We do not rate TOG. We rate Gazprom a Buy, with a 12-month target of $14.8.