Gazprom Neft has signed a binding agreement on the alienation of a
The asset-holding structure following the closing of the transaction will be Gazprom Neft 51 percent, Mubadala Petroleum 44 percent, and the RDIF five percent.
Proved and probable hydrocarbons at Gazpromneft-Vostok fields stand at approximately 40 million tonnes (SPE-PRMS, approximately 300 million barrels). Oil production in 2017 totalled 1.6 million tonnes (approximately 33,000 barrels per day (bpd)). The crude produced at the fields is sold on the domestic Russian and international markets, transported primarily through the Eastern Siberia—Pacific Ocean oil pipeline, as well as being sent for processing at Russian refineries.
This project is Mubadala Petroleum’s first investment in the Russian oil and gas sector.
Gazprom Neft CEO Alexander Dyukov commented: “Our company is already experienced in establishing joint ventures with international partners, but this is the first time one of the largest investment funds in the UAE has invested in one of Gazprom Neft’s Russian assets. This transaction is of considerable importance not just for our company, but for the whole industry. The major potential of Gazpromneft-Vostok lies in developing technologies for hydrocarbon exploration and production in pre-Jurassic strata. And it’s also important for us that our partners believed and had confidence in not just the present, but also the future, of this asset. The task of starting the viable and cost-effective development of Paleozoic reserves can be more effectively addressed in partnership, combining our technological and financial resources.”
Kirill Dmitriev, CEO, Russian Direct Investment Fund (RDIF), added: “RDIF and Mubadala Petroleum investment in a joint venture with Gazprom Neft brings the funds, experience and expertise of our Middle East partners to the Russian oil and gas sector. RDIF, Mubadala Petroleum and Gazprom Neft see this project as the first step in creating a consortium to pursue further significant investments in the sector.”
Dr Bakheet Al Katheeri, CEO, Mubadala Petroleum, said: “This investment marks a further step in our long-term growth strategy and sees Mubadala Petroleum’s entry into Russia. Through this new partnership with RDIF and Gazprom Neft, one of Russia’s leading operators, we will not only to share but also further build on our expertise and capabilities in oil and gas while adding significant oil production to our existing oil and gas portfolio.”
Gazprom Neft is a vertically integrated oil company, primarily involved in oil and gas exploration and production, refining, and the production and sale of oil products. The Gazprom Neft’s corporate structure comprises more than 70 production, refining and sales subsidiaries throughout Russia, the CIS, and abroad.
The company’s proved and probable reserves (SPE-PRMS) are estimated at 2.78 billion tonnes of oil equivalent (btoe), making Gazprom Neft one of the top-20 largest oil and gas companies in the world, and one of Russia’s top three largest companies in terms of production and refining volumes. Total production in 2017 reached 89.75 million tonnes of oil equivalent (mtoe), with refining volumes of 40.1 million tonnes.
Gazprom Neft products are exported to more than 50 countries worldwide, and sold throughout the Russian Federation and abroad. The company’s filling station network totals more than 1,850 outlets throughout Russia, the CIS and Europe.
Gazprom Neft’s net profit in 2017 was RUB253 billion — a
The company’s main shareholder is Gazprom PJSC, which has a
Registered in the Russian Federation on 14 September, 2004, Gazpromneft-Vostok LLC has been active in hydrocarbon production in the Tomsk and Omsk Oblasts since 2005, as operator of a group of fields located in a region with relatively limited potential for development.
The company holds subsoil usage licenses to the Shinginsky, Zapadno-Luginetsky, Yuzhno-Pudinsky, Archinskiy, Urmansky, and Krapivinskoye licence blocks, and was awarded a further subsoil usage licence for geological prospecting at the Parabelsky block in 2017.
The Russian Direct Investment Fund (RDIF) is Russia’s sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. www.rdif.ru
Mubadala Petroleum is a subsidiary company of the Mubadala investment fund, specialising in investments in the oil and gas sector worldwide. Mubadala was established by the government of Abu Dhabi (United Arab Emirates (UAE)). The fund’s strategy is based on long-term partnerships and large-scale investments that deliver not only profit but also social benefits to the residents of the Emirate of Abu Dhabi, as well as contributing to the growth and diversification of the region’s economy. Mubadala is accumulating and managing a multibillion-dollar portfolio of regional and foreign investments, as well as cooperating with leading international organisations. The fund’s investments cover a wide range of industries, including aerospace, semiconductors, the mining and metallurgy and oil and gas industries, renewable energy, IT, healthcare, real estate and infrastructure, and services. The fund’s website can be found at www.mubadala.com.