Alliance’s Russian Venture Proceeds
In a joint venture with Bermuda’s Alliance Group, Spain’s biggest oil firm Repsol has agreed to buy Russian exploration and production company Eurotek for around $230 million.
Eurotek has oil fields with 115 million barrels in reserves in western Siberia that Repsol will incorporate next year in the new venture it agreed to set up last week with the Bermuda-based Alliance Group, Repsol said in a statement today [Dec. 29].
Repsol and Alliance — which has operations in Russia and Kazakhstan — signed an agreement on December 23 to set up the joint venture, AROG, which will serve as a platform for the two firms in Russia, the world’s largest oil and gas producer.
Alliance and Repsol will own 51 percent and 49 percent stake in the joint venture respectively.
The joint venture will have a total asset base of around $840 million following asset and cash contributions by the two shareholders.
