The assets included 100% of OAO Arctic Gas Company, ZAO Urengoil and OAO Neftegaztechnologia. These companies own five oil and gas fields and condensate fields, and parts of three other fields in the Yamal Nenets region, the world’s largest gas-producing region. Combined, the companies have approximately five billion boe of oil and gas reserves.
Eni, which owns 60% of EniNeftegaz, and Enel, which owns the remaining 40%, have offered Russian firm Gazprom the option to acquire a 51% interest in the three companies within two years. If Gazprom takes up the offer, the assets will be operated through a joint venture between Gazprom and Eni.
The lot acquired by EniNeftegaz also includes various minor assets that will be sold or liquidated, and 20% of OAO Gazprom Neft, which will be wholly owned by Eni. Eni has given Gazprom the option to purchase the 20% stake in Gazprom Neft at any point over the next two years, at a price of $3.7 billion.
Eni commented that the purchase, which is the third largest foreign acquisition in Russia’s oil and gas sector to date, marks the company’s entry into the Russian upstream market. Eni added that its agreements with Gazprom mark an addition step in the companies’ partnership to develop upstream, midstream and downstream energy projects inside and outside of Russia.
Paolo Scaroni, CEO of Eni, commented: This transaction is a major step forward in Eni’s strategy of securing reserves in the world’s leading hydrocarbon producing countries…This transaction, which is in the context of a fruitful ongoing relationship between Italy and Russia, underlines the value of our strategic partnership with Gazprom.
