Russia-based state-controlled oil company Rosneft has acquired the remaining 49% interest in ITERA Oil and Gas Company from Itera Holdings for $2.9bn.

The latest transaction will increase Rosneft’s share in Itera Oil and Gas to 100%.

The acquisition will allow the company to increase gas production to 100 bcm per annum and development of the Kynsko-Chaselsk group of fields.

In August 2012, Rosneft and ITERA Oil and Gas signed a deal to form a joint venture (JV) to produce and sell gas.

As part of the deal, Rosneft acquired 51% stake in the JV in exchange for a 100% interest in the charter capital of Kynsko-Chaselskoye Neftegaz and cash consideration of $173.4m.

The JV is expected to hold about 427.2 bcm of gas and 25.8 million tons of liquid hydrocarbons, and plans to produce about 13 bcm of gas in 2013.

Rosneft president Igor Sechin said that gas business is one of the top priorities for the company.