By OGJ editors
HOUSTON, June 20 -- Alliance Oil Co. Ltd., Moscow, and Repsol of Spain will form an exploration and production joint venture in the Russian Federation.
Alliance will hold a 51% stake in the venture and contribute producing assets in the Volga-Urals Region. Repsol will own 49% and make an initial cash investment to finance future growth.
The companies said the deal will combine Alliance’s knowledge and privileged access to Russian exploration and production business opportunities with Repsol’s knowhow and technical capabilities to create a long-term exploration and production alliance.
Repsol owns a 3.47% stake in Alliance resulting from the merger between Alliance and West Siberian Resources in 2008. Repsol also owns 74.9% of in Eurotek-Yugra, which has exploration and production licenses in the Karabashsky-1 and 2 blocks in Western Siberia.
The transaction is subject to negotiation of final contractual terms, due diligence of the assets to be contributed by Alliance, and the procurement of relevant regulatory and corporate approvals. It is expected to be completed in 2011.
Alliance has vertically integrated operations in Russia and Kazakhstan. It has proved and probable oil reserves of 638 million bbl and downstream operations that include the Khabarovsk refinery and the leading network of gasoline stations and wholesale oil products terminals in the Russian Far East.