Spain's Repsol buys Russian oil exploration company

29th December 2011, Comments 0 comments

Spain's biggest oil firm Repsol has agreed to buy Russian exploration and production company Eurotek for around $230 million (178 million euros), the company said Thursday.

Eurotek has oil fields with 115 million barrels in reserves in western Siberia that Repsol will incorporate next year into a joint venture it agreed to set up last week with Bermuda-based Alliance Group, it added in a statement.

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.

© 2011 AFP

0 Comments To This Article