11 Apr 2017 17:54
Rosneft Acquires a Strategic Asset in the New Production Cluster in Khanty-Mansiysk Autonomous District
Rosneft closed the acquisition of a 100% stake in the Kondaneft project, which is developing the Kondinsky, Zapadno-Erginsky, Chaprovsky and Novo-Endyrsky license areas in the Khanty-Mansiysk Autonomous District.
Acquisition of this asset is in line with the Company's strategy aimed at maximizing efficiency of resource development in the main oil and gas producing region of the Company's operations which has developed infrastructure. The reserves of the Kondinsky group of fields (2P) stand at 157 mmt of oil according to the international reserves audit conducted by DeGolyer and MacNaughton. The Company will take measures to commission the Kondaneft already in 2017, which will enable a significant increase in Rosneft's consolidated production indicators.
The Kondaneft group of fields is located 100 kilometers from one of the Company's key assets, the Priobskoye field, and is adjacent to Erginskoye, the largest field in the unallocated stock of the Russian Federation. An integrated approach to the development of the Kondinskoye group of fields and the Erginskoye field will generate high synergy and accelerated development of the resource potential of the fields, considering the infrastructure already created within the Kondaneft project, as well as RN-Yuganskneftegaz' existing resources and the developed infrastructure. The start of production in the Kondaneft project in 2017 will launch the development of one of the most promising production clusters in the Russian oil and gas industry.
The acquisition price of a 100% of the project company's equity capital will be about RUB40 bln and the cost of acquisition per barrel of reserves will be about USD1.0 per barrel. The deal received the necessary approvals from the Federal Antimonopoly Service of the Russian Federation.
Rosneft Information Division
Tel.: +7 (495) 517-88-97
April 11, 2017
These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.