Rosneft announces that it signed an agreement with NOVATEK to swap assets. 40% of shares in Artic Russia B.V. held by Rosneft will be swapped for 51% shares in Sibneftegas held by NOVATEK. The transaction does not involve any cash payments.
Upon completion of the transaction, Rosneft, already holding a stake in Sibneftegas, will consolidate 99.94% of shares in this company.
The transaction was approved by Rosneft Board of Directors on December 20, 2013, and will be completed after the necessary approvals from regulating bodies are received.
The transaction allows Rosneft to gain control over first-class gas asset at commercial development stage, consolidate its financial and operational results and improve the quality of its corporate procedures in exchange for an effective minority stake in SeverEnergia.
Commenting on the agreement, Igor Sechin, Rosneft President and Chairman of the Management Board, said, "The agreements reached today with our partners are mutually beneficial and demonstrate the successful implementation of Rosneft's strategy for expansion and development of the gas business. As a result of the transaction, the Company takes control over the asset that is currently is at a commercial production stage and generates a stable cash flow without requiring significant capital investment. In addition, the control over Sibneftegas will allow Rosneft to achieve significant synergies in developing the Company’s fields in close proximity to Sibneftegas’ infrastructure".
Chairman of the Management Board of NOVATEK, Leonid V. Mikhelson commented “The asset swap allows us to optimize our upstream portfolio and concentrate on the development of fields rich in liquid hydrocarbons, which complements our long-term strategy, taking into account our existing infrastructure for transportation, stabilization and fractionation of gas condensate”.
