UAE’s Mubadala Petroleum invests to develop Siberian oil fields

Mubadala 6The investment marks Mubadala’s first investment in the Russian oil and gas sector. (Image source: Mubadala Petroleum)Abu Dhabi-based Mubadala Petroleum, Gazprom Neft and the Russian Direct Investment Fund (RDIF) have completed a transaction to establish a joint venture to develop oil fields in the Tomsk and Omsk regions of Western Siberia

Further to an agreement announced on 24 May 2018, Gazprom Neft has completed its sale of a 49 per cent interest in Gazpromneft-Vostok LLC, operator of 13 fields, to Mubadala Petroleum and RDIF.

Following the completion of this transaction, Gazprom now holds a 51 per cent interest in the joint venture, with Mubadala Petroleum and RDIF holding 44 per cent and five per cent equity respectively.

The Gazpromneft-Vostok joint venture represents Mubadala Petroleum’s first investment in the Russian oil and gas sector.

The partners will determine the long-term strategy of the joint-venture, focusing on efficiency in exploration and production activities at the fields as well as at pre-Jurassic hydrocarbon deposits.

Commenting on the collaboration, Dr Bakheet Al Katheeri, CEO of Mubadala Petroleum, said, “The acquisition of a 44 per cent interest in the Gazpromneft-Vostok joint venture is another important step in Mubadala Petroleum’s drive for sustainable and profitable growth, marking our entry into Russia and adding valuable oil production to our existing portfolio.”

Alexander Dyukov, CEO at Gazprom Neft PJSC, added, “Through our partnership with Mubadala Petroleum and RDIF, we will not only be focusing on improving the current business performance of Gazpromneft-Vostok, but will also be looking for new opportunities to develop it further.”

Kirill Dmitriev, CEO of RDIF, further noted, “We expect this transaction to become the basis for further investments by the consortium created by RDIF, Mubadala Petroleum and Gazprom Neft. Participation of Mubadala Petroleum in the consortium will bring funds, experience and expertise of our Middle East partner to the Russian oil and gas sector.”

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