Repsol YPF SA said it agreed to acquire explorer Eurotek for $230 million, and will incorporate Eurotek’s assets in western Siberia into its new Russian venture with Alliance Oil Co. (OGJ Online, Dec. 22, 2011).
Repsol YPF said it will pay for the purchase of Eurotek on a debt-free, cash-free basis. The acquired assets include Syskonsyninskoye and Yuzhno-Khadyryakhinskoye gas fields.
Repsol YPF said Syskonsyninskoye field is at an advanced development stage, starting production in 2012 while the Yuzhno-Khadyryakhinskoye field is under the final stage of appraisal and is expected to come online by 2016.
The company said it will contribute these assets at cost to the recently created Alliance Repsol Oil & Gas Joint Venture Co., as part of Repsol YPF’s commitment in cash and kind.
Earlier this month, Repsol YPF and Alliance said they have agreed to form a JV aimed at serving as a “growth platform” for both companies in the Russian federation.
The two firms said their JV will have a total asset base of $840 million following asset and cash contributions by the shareholders. Alliance will hold a 51% stake in the venture and Repsol YPF will hold 49%.
Repsol YPF already owns a 3.5% stake in Alliance as a result of the merger between Alliance and West Siberian Resources, in which Repsol YPF initially held 10%, in 2008.
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