Mubadala completes oil field deal in Russia

ST. PETERBURG / WAM

Gazprom Neft, Mubadala Petroleum and the Russian Direct Investment Fund (RDIF), the sovereign wealth fund of the Russian Federation have announced the completion of a transaction establishing a joint venture to develop oil fields in the Tomsk and Omsk regions of Western Siberia.
Further to an agreement announced on May 24 this year, Gazprom Neft has now completed its sale of a 49% interest in Gazpromneft-Vostok LLC, operator of 13 fields, to Mubadala Petroleum and RDIF. Following the completion of this transaction Gazprom Neft now holds a 51% interest in the joint venture, with Mubadala Petroleum and RDIF holding 44% and 5% equity, respectively. Gazpromneft-Vostok remains a subsidiary of Gazprom Neft, and will continue to operate the fields.
The Gazpromneft-Vostok joint venture represents Mubadala Petroleum’s first investment in the Russian oil and gas sector.
The partners will determine the long-term strategy of the joint-venture, focusing on efficiency in exploration and production activities at the fields as well as at pre-Jurassic hydrocarbon deposits.
Dr Bakheet Al Katheeri, CEO, Mubadala Petroleum, said: “The acquisition of a 44% interest in the Gazpromneft-Vostok joint venture is another important step in Mubadala Petroleum’s drive for sustainable and profitable growth, marking our entry into Russia and adding valuable oil production to our existing portfolio.”