UAE's Mubadala completes JV deal to develop Siberian oil fields

Gazprom Neft, Mubadala Petroleum and the Russian Direct Investment Fund plan to develop oil fields in the Tomsk and Omsk regions of Western Siberia
UAE's Mubadala completes JV deal to develop Siberian oil fields
By Sam Bridge
Wed 05 Sep 2018 04:19 PM

Gazprom Neft, Mubadala Petroleum and the Russian Direct Investment Fund (RDIF) have announced the completion of a deal to set up a joint venture to develop oil fields in the Tomsk and Omsk regions of Western Siberia.

Further to an agreement announced in May 2018, Gazprom Neft has now completed its sale of a 49 percent interest in Gazpromneft-Vostok, operator of 13 fields, to UAE-based Mubadala Petroleum and RDIF.

Gazprom Neft now holds a 51 percent interest in the joint venture, with Mubadala Petroleum and RDIF holding 44 percent and five percent equity, respectively.

Gazpromneft-Vostok remains a subsidiary of Gazprom Neft, and will continue to operate the fields.

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

Alexander Dyukov, CEO, Gazprom Neft, said: “This first investment by one of the largest oil and gas companies in the UAE, Mubadala Petroleum, in a Russian asset is certainly a landmark event for the industry.

"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.

"We see Mubadala Petroleum and RDIF as strategic partners, and expect to deliver mutually beneficial results from combining our financial and technological resources.”

Dr Bakheet Al Katheeri, CEO, Mubadala Petroleum, added: "The acquisition of a 44 percent 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.

"Partnering with Gazprom Neft, a leading Russian operator, and RDIF will not only provide us with significant co-investment opportunities, but will also further develop our own oil and gas expertise and capabilities, as well as exploration and production technologies.”

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