Please activate JavaScript in your browser to use all interface options.

« June, 2017
Mo Tu We Th Fr Sa Su
1234
567891011
12131415161718
19202122232425
2627282930
Main page News room Press releases
Press releases

Rosneft and Beijing Gas close the deal for sale and purchase of 20% shares in Verkhnechonskneftegaz

29 June

Rosneft and Beijing Gas Group Company Limited ("Beijing Gas") closed the deal for sale and purchase of 20% shares in Verkhnechonskneftegaz (a Rosneft subsidiary). The price of purchased 20% stake amounted to around USD 1.1bln.

As a result of the transaction, the parties are going to create a vertically integrated system of cooperation. The Chinese company acquires a stake in one of the largest producing fields in Eastern Siberia with developed infrastructure and access to the ESPO pipeline while Rosneft gets an opportunity to enter China’s prospective domestic gas market, including end users via swap gas supplies.

The project evaluation proves the high potential of the Verkhnechonskneftegaz resource base: it is $3.2 per barrel of hydrocarbon reserves (in terms of 2P category using PRMS method).

The sale of the stake in the project will allow Rosneft to fully implement the significant potential of the Verkhnechonskoye field, including natural gas production, as well as strenghten the strategic partnership with one of the largest natural gas sales companies in China.

Taking into consideration the decision of the PRC authorities to transfer Beijing's electric power from coal to gas and to accelerate the transfer of China's motor vehicles to natural gas motor fuel, the deal opens up broad prospects for Rosneft's gas business at the Chinese market.

“The Implementation of the project of Beijing Gas corporation joining the Verkhnechonneftegaz enterprise will allow us to enter the rapidly growing Chinese market. The eastern direction is one of the most prospective and strategically important for us. Cooperation with Beijing Gas is a good example of Rosneft's integral approach, which contributes to the creation of a reliable energy bridge between Russia and Asia-Pacific countries", Rosneft Chief Executive Officer Igor Sechin said.

Also, Rosneft and Beijing Gas are considering the options for the development of integrated cooperation in the Eastern Siberia and the Far East region, providing for exploration of hydrocarbons, fields development, production and sale of gas.

Notes for editors:

In November 2016, Rosneft and Beijing Gas Group Company Limited signed the Sale and Purchase Agreement, the Shareholder Agreement and the Operating Agreement for the sale of a 20% share in Verkhnechonskneftegaz to the Chinese company, the Agreement on the zone of mutual interests with respect to adjacent license areas, and the Agreement on Cooperation in the Gas Business.

Beijing Gas Group Company Limited is a member of Beijing Enterprises Group Limited and is a leading company in the area of natural gas supply, gas infrastructure construction and power generation in the Beijing region. The company manages more than 20 gas projects in the People's Republic of China, and is also the owner of a marine terminal for the storage and transshipment of LHG in Guadao with an estimated capacity of 6 million tons per year.

Verkhnechonskneftegaz holds a license to develop the Verkhnechonskoye oil and gas condensate field. The current recoverable reserve of the field in terms of category C1 + C2  is 173 million tons of oil and gas condensate and 115 billion cubic meters of gas. The field is one of the federal significance areas due to its reserves' volume. The current level of oil production is 8.5 million tons per year.  

Rosneft Information Division
Rosneft Oil Company PJSK
Tel.: + 7 (499) 517-88-97
June 29, 2017