Spanish firm buys Russian oil company for $230 mn

December 30th, 2011 - 12:46 pm ICT by IANS  

Madrid, Dec 30 (IANS/EFE) Spanish energy firm Repsol YPF SA said Thursday that it spent $230 million to acquire Russian oil company Eurotek, which holds exploration and production permits in Western Siberia.

Russia’s anti-trust authority has approved the deal, Repsol said in a regulatory filing.

Repsol plans to incorporate the Eurotek assets into AROG, the Spanish firm’s recently formed joint venture with Russia’s Alliance Oil Co. Ltd.

Two of the Eurotek assets, the Syskonsyninskoye gas field and the Yuzhno-Khadyryakhinskoye deposit, together represent 115 million barrels of oil equivalent in proven and probable reserves destined for AROG, Repsol said.

Alliance Oil firm holds 51 percent of the $840 million joint venture, with the rest controlled by Repsol.

The Spanish company already had a 3.5 percent stake in Alliance, whose chairman, Musa Bazhaev, expressed an interest in acquiring shares in Repsol.

Repsol’s experience in extracting heavy crude is of particular interest to Alliance, Bazhaev said last week when the deal was signed, as expertise in that field has been lacking in the Russian oil industry.

–IANS/EFE
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