Alliance Oil Co. Ltd. and Repsol Exploracion SA agreed to form a joint venture for exploration and production in Russia, combining Alliance’s Russian exploration and production expertise with Repsol’s technological and financing capabilities.
Under the agreement, Alliance will transfer its upstream subsidiaries Saneco and Tatnefteodatcha, which comprise exploration and production licenses at 14 fields with proved and probable oil reserves of 171.5 million bbl and production of 20,500 b/d of oil.
Alliance’s asset contribution is valued at $570 million, and Repsol will carry out a capital increase in the joint venture as well as paying cash to Alliance to obtain 49% interest participation.
The companies said their joint venture will have preferential rights regarding new upstream business opportunities identified by either Alliance or Repsol in Russia.
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