20 December 2011 - 09:00 CET | PDF | 38.88 KB
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Alliance Oil and Repsol reach an agreement to form and govern Russian exploration and production joint venture
Press Release
20/12/2011 15:50
- Alliance Oil Company Ltd and Repsol Exploración, S.A. have reached an agreement to form and govern a joint venture for exploration and production growth in Russia.
- Further to the agreement, Alliance and Repsol envisage establishing a joint venture with a total asset base of approximately $840 million following asset and cash contributions by the shareholders, with Alliance and Repsol holding a 51% and a 49% stake respectively.
- The collaboration implies that Alliance will transfer upstream assets in the Volga-Urals region valued at approximately $570 million on a debt-free, cash-free basis to the joint venture. Repsol will carry out a capital increase and also pay cash to Alliance to reach a 49% participation in the joint venture.
- The purpose of the joint venture will be to develop assets contributed by the shareholders to enhance production, and serve as a vehicle to facilitate reserve growth through acquisition opportunities in oil and gas exploration and production in Russia, the world’s largest producer of hydrocarbons.