Rosneft has got together with one of Russia's largest independent natural gas producers, ITERA Oil and Gas, to produce and sell gas from the Kynsko-Chaselsk license block in the Yamalo-Nenets region, onshore northern Russia.
The companies have agreed a joint venture deal in which Rosneft has obtained a 51-percent stake in Kynsjo-Chaselskoye Neftegaz in return for $173.4 million.
The Kynsko-Chaselsk license block is in the Krasnoselkupsk region of the Yamalo-Nenets region. It comprises six deposits that, combined, hold proved and probable (2P) reserves of 13.2 trillion cubic feet of gas and 15.7 million tons of liquid hydrocarbons.
ITERA was the first private company to put gas deposits in the north of Russia into production, and it has been developing gas production in the Yamalo-Nenets region since 1998.
Commenting in a statement about the deal, Rosneft president Igor Sechin said:
"Combining the gas assets of the two companies into a joint venture opens up new opportunities to monetize gas and ensure the implementation of Rosneft's strategic program to begin developing sizable gas reserves."
Last Wednesday, Rosneft announced that its hydrocarbon production during the first half increased by 2.5 percent compared with 1H 2011, reaching 2.6 million barrels of oil equivalent per day. The company said that it is taking strategic steps to expand partnerships with international oil companies in operations to reach hard-to-recover oil.
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