Gazprom Neft Oil Field Service Completes Sale of Service Transportation Company

Press-release

Gazprom Neft Oil Field Service has completed the sale of Service Transportation Company (STC). The buyer of the asset was RU-Energy Group. The deal was approved by the Federal Antimonopoly Service of Russia.

According to the conditions of the deal, the Service Transportation Company will keep its long-term contracts with Gazprom Neft enterprises with guaranteed volumes of work until the end of 2013 and the possibility of a further two year extension.The agreement also provides for the retention of obligations, by which the new owner must comply with the conditions of the collective agreement negotiated by STC.

“The sale of STC is the next step in the implementation of the company’s exit strategy from the oil field service business”, announced Gazprom Neft Chairman of the Executive Board Alexander Dyukov. “At this time, we are in the process of negotiating the sale of our remaining enterprises in the oilfield service division, and we intend to complete this process by the end of the year.”

The decision to withdraw from the oilfield service business was taken by the Board of Directors in March 2010. Today, the company has finalised the sales of the following transport enterprises: Muravlenko Transportation Company and SpetsTransServis, as well as the secondary production enterprise Noyabrsk Central Pipe Base.

Reference

OOO Service Transportation Company provides a range of transport services and conducts work in the field of cementing wells. The company operates in the exploration and production sites in the Yamal-Nenets and Khanty-Mantsi Autonomous Regions, as well as in the Omsk and Tomsk Regions.

STC employs a fleet of 474 units of machinery, including eight cementing fleets. In 2010, the company acquired two modern cementing fleets.

STC employs 950 people; its revenue in 2010 amounted to US $50.7 million.