By Stephen Bierman & Matthew Campbell - Sep 24, 2013 4:43 PM GMT+0400
Rosneft agreed to acquire 19.6 percent stake in SeverEnergia, a venture that produces gas in western Siberia, according to a statement today. Photographer: Alexander Zemlianichenko Jr./Bloomberg
OAO Rosneft bought a $1.8 billion stake in a Siberian venture from Italy’s Enel SpA, as the state-run oil producer seeks a greater share of Russia’s natural-gas market.
Rosneft agreed to acquire a 19.6 percent stake in SeverEnergia, a venture that produces gas in western Siberia, according to a statement today. OAO Gazprom Neft and OAO Novatek own 51 percent of SeverEnergia with Eni SpA and Enel holding the remainder.
Rosneft agreed to acquire 19.6 percent stake in SeverEnergia, a venture that produces gas in western Siberia, according to a statement today. Photographer: Alexander Zemlianichenko Jr./Bloomberg
The acquisition will help Rosneft meet the goal of boosting natural gas output to 100 billion cubic meters in 2020, equivalent to Canada’s annual consumption, becoming the largest supplier in Russia behind OAO Gazprom. SeverEnergia has the potential to produce 35 billion cubic meters of gas a year, according to a Novatek presentation last month.
“The gas business is one of the company’s strategic development priorities,” Rosneft Chief Executive Officer Igor Sechin said in the statement. The deal will help “in the long run to expand contracted gas deliveries.”
Rosneft shares fell as much as 1.1 percent in Moscow following the announcement, and traded at 259.41 rubles at 4:39 p.m. local time. Enel shares rose as much as 2.4 percent in Milan.
“This transaction is part of Enel’s disposal plan announced in 2013 and confirms the ability to deliver on the group’s targets,” Enel CEO Fulvio Conti said in a statement. “Russia remains a strategic country for us and we will continue to operate in power generation and sales.”
Enel and Eni bought SeverEnergia during the liquidation of bankrupt Yukos Oil Co. in 2007, the only international energy companies to buy assets in the auctions. State run OAO Gazprom, the world’s largest gas producer, later bought a 51 percent share, which it sold to Novatek and its liquids arm Gazprom Neft.
To contact the reporters on this story: Matthew Campbell in London at mcampbell39@bloomberg.net; Stephen Bierman in Moscow at sbierman1@bloomberg.net
To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net
