Rosneft and Itera Gas Come Together to Explore for Russian Gas
Rosneft and ITERA Oil and Gas Company will join forces on joint exploration and development of gas deposits in Russia, following the signing of an agreement yesterday.
The agreement, signed yesterday by Rosneft President Eduard Khudainatov and ITERA's Chairman of the Board of Directors Igor Makarov, may see the two companies enter into a joint venture in the future. This joint venture would grant each company access to the other's assets, including ITERA's 49 per cent stake of Sibneftegaz, 49 per cent stake of Purgaz and 67 per cent stake of Uralsevergaz and Rosneft's deposits in the Kynsko-Chaselsk group. A statement from Rosneft says that more of the company's assets may also be transferred to the joint venture in future.
Under the agreement, the two companies will aim to increase and expand their standing in the gas market, with the combination of each's gas and hyrdrocarbon reserves.
"The establishment of this joint venture with Rosneft is an important step in ITERA Group’s further development," Mr Makarov said. "It will allow both of the companies to combine their potentials and use their strategic advantages most effectively. We expect the joint venture to become the flagship on the Russian independent gas producer market."
Initially, Rosneft brings 60 million tonnes of gas and hydrocarbon reserves to the table, with ITERA bringing up to 1.2 trillion cubic metres. By combining these resources and exploring for new deposits, the companies expect to extract and sell up to 40 billion cubic metres of gas per year.
"The joint venture provides a strong foundation for successful implementation of the shareholders’ gas strategy and serves as an effective tool for monetizing gas produced at Rosneft and ITERA’s deposits," President of Rosneft Eduard Khudainatov said.
"Joint projects to be developed under the agreement will be a substantial step forward in implementing Rosneft’s strategic programme to increase the share of gas reserves under development, which will help increase the Company’s capitalization and create additional value for shareholders. We are looking forward to working effectively with the management of the ITERA Group to manage this joint asset in extracting, preparing, transporting and selling gas."