Mubadala Petroleum, a unit of UAEs sovereign wealth fund and Russian Direct Investment Fund (RDIF) signed they would create a joint venture with PJSC Gazprom Neft to explore oil fields in the Tomsk and Omsk regions of Russia
Under the deal, RDIF and Mubadala Petroleum will jointly hold a 49 per cent stake in LLC Gazpromneft-Vostok, which will be the operator of the fields. Mubadala will hold 44 per cent and the remaining 5 per cent stake will be held by RDIF.
A joint statement from RDIF and Mubadala Petroleum said that proved and probable reserves in the fields are about 300mmbbl. Production from the fields stood at about 33,000bbl per day in 2017.
The agreement was announced at the St. Petersburg International Economic Forum.
"RDIF and Mubadala Petroleum investment in a joint venture with Gazprom Neft brings the experience and expertise of our Middle East partners to the Russian oil and gas sector. RDIF, Mubadala Petroleum and Gazprom Neft see this project as the first step in creating a consortium to pursue further significant investments in the sector," Kirill Dmitriev, CEO, RDIF, said.
"This investment marks a further step in our long-term growth strategy and sees Mubadala Petroleum’s entry into Russia. Through this new partnership with RDIF and Gazprom Neft, one of Russia’s leading operators, we will not only share but also further build on our expertise and capabilities in oil and gas while adding significant oil production to our existing oil and gas portfolio," Bakheet Al Katheeri, CEO, Mubadala Petroleum, said.
"Our company has vast experience in setting up joint ventures with international partners, but for the first time one of the largest investment funds of the UAE has invested in the Russian assets of Gazprom Neft. This transaction is of great importance not only for our company but for the whole industry," Alexander Dyukov, chairman, Gazprom Neft, said.
