Alliance Oil and Repsol inks pact

22 December 2011: Repsol Chairman Antonio Brufau and Alliance Group Chairman Musa Bazhaev have signed an agreement in Moscow to form a JV that serves as a growth platform for both companies in the Russian Federation, the world’s largest oil and gas producer. This agreement seeks to combine Alliance’s knowledge and access to exploration and production business opportunities in Russia with Repsol’s know-how and technological and financing capabilities to create a long-term exploration and production partnership in Russia.

The joint venture is envisioned to have a total asset base of approximately $840 million (approx Rs.4,426 crore) following asset and cash contributions by the shareholders. Alliance and Repsol will hold a 51 per cent and a 49 per cent stake respectively in the joint venture. Under this collaboration, Alliance will transfer its upstream subsidiaries Saneco and Tatnefteodatcha, which comprise exploration and production licenses at 14 fields with proven and probable oil reserves of 171.5 million barrels as of 31st December 2010 and current production of around 20,500 barrels of oil per day.

Source: Yourindustynews