Russian oil giant Rosneft has completed the acquisition of a 100% stake in the Kondaneft group of oil fields spread across West Siberia in Russia for RUB40bn ($700m).

The Kondaneft project is developing the Kondinsky, Zapadno-Erginsky, Novo-Endyrsky and Chaprovsky license areas in the Khanty-Mansiysk Autonomous District.

Rosneft sees the acquisition as a strategic asset in the new production cluster in Khanty-Mansiysk Autonomous District.

Though the identity of the seller has not been disclosed by Rosneft, local media in Russia has revealed that the asset was bought from a company owned by the firm’s ex-CEO Eduard Khudainatov, reported Reuters.

Rosneft stated: “Acquisition of this asset is in line with the Company's strategy aimed at maximal efficiency of resource development in the main oil and gas producing region of the Company’s operations which has developed infrastructure.”

As per international reserves audit carried out by DeGolyer and MacNaughton, the oil reserves of the Kondinsky group of fields are estimated to be at 157 million metric tons (mmt).

Rosneft plans to take measures to make the Kondaneft oilfields operational this year to consolidate its oil production capacity.

The Kondaneft oil fields are located near the Erginskoye oilfield, and 100kms from Rosneft-owned Priobskoye field.

According to Rosneft, an integrated approach for the development of Kondinskoye fields and Erginskoye will create high synergy. Besides, it would speed up development of the resource potential of the oil fields.

This, Rosneft says is due to the infrastructure already built for the Kondaneft project and the existing resources and developed infrastructure of RN-Yuganskneftegaz.

Earlier in the month, Rosneft commenced drilling of the Tsentralno-Olginskaya-1 well at the Khatangsky license area located in the Russian Arctic shelf.


Image: Rosneft has acquired the Kondaneft group of oil fields in Russia. Photo: courtesy of suwatpo/Freedigitalphotos.net.