2 Jul 2013 10:45
Rosneft consolidated ITERA Oil and Gas Company LLC
Rosneft and members of ITERA Oil and Gas Company LLC inform on the acquisition of the remaining 49% of ITERA Oil and Gas Company LLC from Itera Holdings Limited for USD 2.9 bln. As a result Rosneft increased its share in Itera Oil and Gas Company LLC to 100%.
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 capitalization of the Company and bring additional value to shareholders".
"We will continue our cooperation with Rosneft. There is a number of international and other projects with a potential of further development" Igor Makarov, the owner of Itera Holdings Limited said.
BACKGROUND:
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% in the joint venture in exchange for a 100% stake in the charter capital of Kynsko-Chaselskoye Neftegaz (which owns the license for the Kynsko-Chaselsk license block) and a cash consideration of USD 173.4 million.
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.
Itera Holdings Limited is part of the international group of companies "ITERA" which consolidate assets of Irog Makarov. The holding company includes enterprises and companies in the CIS, Baltic countries, Western Europe, Asia and the USA. Besides gas business, the group also focuses on development, chemical utilization of natural gas and utilities.
Press Service Rosneft Information DivisionITERA Oil and Gas Company Tel.: +7 (495) 411 54 20Tel/fax: +7 (495) 411 8631 Fax: +7 (495) 411 54 21pr@itera.ru www.rosneft.com
July 2, 2013
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