Russia-based state-controlled oil company Rosneft is planning to acquire local gas firm Itera for $3bn, in a bid to strengthen its presence and challenge Gazprom's industry dominance.
Rosneft, which already holds 51% interest in Itera, is also planning to buy the remaining 49% in the gas firm, reported Reuters.
Rosneft and Itera have planned to produce 13 billion cubic metres (bcm) of gas in 2013 that is equal to 2% of Russia’s total output, through a joint venture formed in 2012.
The company, after buying Itera has agreed to sell 4.65bcm of locally produced gas to the Surgutskaya GRES-2 power station, which is owned by E.ON in between 2013-2015.
In 2012, Rosneft picked up the controlling stake in Itera, after Igor Sechin was appointed as the head of the country’s largest oil producer.
Sechin has also played a key role in closing the $55bn worth deal of Anglo-Russian oil firm TNK-BP in March 2013.