ITERA Group and Rosneft have formed a joint venture (JV) to produce and sell natural gas from the Kynsko-Chaselsk license block located in the Krasnoselkupsk region of the Yamalo-Nenets autonomous district.

Rosneft owned 51% owner in the JV for a cash payment of $173.4m and 100% stake in the charter capital of Kynsko-Chaselskoye Neftegaz, which owns the license for the Kynsko-Chaselsk license block.

The consolidated proved and probable reserves of the JV under international classification will cumulatively be 372.4 billion cubic metres of gas and 15.7 million tonnes of liquid hydrocarbons.

Rosneft president Igor Sechin said, "Combining the gas assets of the two companies into a joint venture opens up new opportunities to monetize gas and ensure the implementation of Rosneft’s strategic programme to begin developing sizeable gas reserves."

The predicted output of the JV is expected to be about 13 billion cubic metres in the year 2013.

Russia based Rosneft is an oil company and ITERA Oil and Gas Company is an independent producers and sellers of natural gas.