Alliance Oil and Repsol reach an agreement to form and govern Russian exploration and production joint venture
Press Release20/12/2011 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.