As part of the joint venture deal, Mubadala Petroleum, a subsidiary of Abu Dhabi strategic firm Mubadala Investment Company, and RDIF agreed to acquire 49% stake in Gazprom Neft-Vostok, the operator of several oil fields in the Tomsk and Omsk regions.

Gazprom Neft CEO Alexander Dyukov said: “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.

“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.”

Upon completion of the transaction, Gazprom Neft has 51% stake in Gazprom Neft-Vostok while Mubadala Petroleum and RDIF will have 44% and the 5% stakes, respectively.

The transaction, however, is subject to customary regulatory and internal approvals.

Output from the Gazprom Neft-Vostok-operated fields is sold into Russian domestic and international markets. It is transported primarily through the Eastern Siberia-Pacific Ocean oil pipeline.

RDIF CEO Kirill Dmitriev said: “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.”

Mubadala CEO Dr Bakheet Al Katheeri said that the investment marks a further step in its long-term growth strategy, and marks its entry into Russia.