Spanish oil major Repsol announced Friday that it has completed the first phase of its exploration and production joint venture with Alliance Oil in Russia.
Alliance has transferred its upstream company Saneco to the joint venture, in return for which Repsol has contributed $37 million to the joint venture and paid $36 million to Alliance. Repsol now holds a 49-percent stake in the joint venture.
The Saneco subsidiary has brownfield upstream assets that are located onshore in the Samara region of southwest Russia. These assets produced 1.1 million barrels of oil in the second quarter of 2012 and, as of December 31, 2011, contained 2P reserves of 38 million barrels.
According an agreement signed by Repsol and Alliance in December 2011, the joint venture will also include Alliance subsidiary Tatnefteotdacha and Repsol's Eurotek. These subsidiaries are expected to be added during the fourth quarter of 2012.
Repsol sees the joint venture as serving as a growth platform for both it and Alliance within the Russian Federation – the world's largest oil and gas producer.
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