Mubadala, Gazprom Neft, RDIF set up Siberia upstream JV

Sep 06, 2018
3 min read
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Gazprom Neft, Mubadala Petroleum and Russia’s sovereign wealth fund have finalised a deal to set up a joint venture to develop oil fields in the Tomsk and Omsk regions of Western Siberia.

Gazprom Neft completed the sale of its 49 per cent interest in Gazpromneft-Vostok LLC, operator of 13 fields, to Mubadala Petroleum and Russian Direct Investment Fund (RDIF).

Following the completion of this transaction Gazprom Neft now holds a 51-per cent interest in the joint venture, with Mubadala Petroleum and RDIF holding 44 per cent and 5 per cent 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.

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.

“This first investment by one of the largest oil and gas companies in the United Arab Emirates, Mubadala Petroleum, in a Russian asset is certainly a landmark event for the industry,” said Alexander Dyukov, CEO, Gazprom Neft PJSC. “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. One promising area for joint work here being developing technologies for the profitable development of pre-Jurassic hydrocarbon resources in the Tomsk Region. 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, 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. 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.”

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said: "We welcome Mubadala Petroleum’s first investment in Russia. 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."


Caption: From Left to right - Dr Bakheet Al Katheeri, CEO of Mubadala Petroleum - Vadim Yakovlev, First Deputy CEO of Gazprom Neft - Anatoly Braverman, First Deputy CEO of RDIF


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