Malka Oil AB and Gazprom Neft sign binding term sheet regarding sale of key Malka Oil subsidiary

Today Gazprom Neft and Swedish company Malka Oil AB signed a binding term sheet regarding the sale of Malka Oil’s production subsidiary OOO STS-Service to Gazprom Neft for a purchase price of SEK 820,000,000 in cash (about $118 mln).

The binding term sheet will be further elaborated in a sale and purchase agreement to be executed by the parties before the extraordinary shareholder’s meeting of Malka Oil.

The transaction is subject to approval by Malka Oil shareholders, Gazprom Neft corporate approval and the Federal Antimonopoly Service (FAS) of the Russian Federation. The Malka Oil board of directors is unanimously recommending Malka Oil shareholders approve the transaction.