Tyumen buys Rospan debt

Russian company Tyumen Oil Co. has acquired more than half of the 2.3 billion ruble ($78 million) debt owed by Rospan. Rospan has reserves of 568 billion cu m of gas and 96 million tonnes of gas condensate in the East Urengoi and New Urengoi fields in northwestern Siberia.

June 8, 2001

By the OGJ Online Staff

HOUSTON, June 8 -- Russian company Tyumen Oil Co. has acquired more than half of the 2.3 billion ruble ($78 million) debt owed by Rospan.

Rospan has reserves of 568 billion cu m of gas and 96 million tonnes of gas condensate in the East Urengoi and New Urengoi fields in northwestern Siberia.

Last year, Rospan produced more than one billion cu m of gas and 345,000 tons of condensate, said Tyumen.

The Moscow Arbitration Court declared Rospan bankrupt in August 2000 while the company was controlled by Itera. Previously, Gazprom controlled the company.

"Expansion of our gas assets has been a centerpiece of our strategy for years," said Simon Kukes, president and CEO of Tyumen Oil. "This strategy, along with our experience and commitment to investing to significantly improving the value of distressed assets, make Rospan attractive to us. We are confident that we can rebuild the company and make it profitable."

Previously, Tyumen had acquired interests in Rusia Petroleum, which is developing the Kovytka gas condensate field in southeastern Siberia's Irkutsk region.