Lukoil and Gazprom Neft in Near $700MM Deal

Lukoil and Gazprom Neft in Near $700MM Deal
The transaction value amounts to $695.2 million.

PJSC Lukoil has announced that it and PJSC Gazprom Neft have concluded a sale and purchase agreement for a 50 percent equity share of Meretoyakhaneftegaz LLC, which is a Gazprom Neft wholly owned subsidiary.

The transaction value amounts to $695.2 million (RUB 52 billion), including the cession of claim of Gazprom Neft’s loans worth $467.9 million (RUB 35 billion), Lukoil highlighted. The deal is planned to be completed in 2022 after the fulfilment of a number of conditions precedent, including all necessary corporate approvals, as well as the consent of the Federal Antimonopoly Service, Lukoil outlined.

The contract was signed as part of the creation of a joint venture to develop a large oil and gas cluster in the Nadym-Pur-Tazovsky area of the Yamal-Nenets Autonomous District, Lukoil pointed out. Back in September, Lukoil announced that it and Gazprom Neft had concluded an agreement on creating a joint venture to develop a major oil and gas cluster in the Nadym-Pur-Tazovsky area of the Yamal-Nenets Autonomous District.

In Lukoil’s September statement, it was revealed that the joint venture will be based at Meretoyakhaneftegaz LLC and that the Tazovskoye oil and gas condensate field, which was put on-stream this June, will be at heart of the new production area. Meretoyakhaneftegaz is the first asset to be managed by Lukoil and Gazprom Neft on a parity basis, Lukoil noted in its September statement.

Earlier this month, Lukoil announced that it would support social projects of the Yamal-Nenets Autonomous District. This support was outlined to include aiding the provision of medical and diagnostical assistance and rehabilitation to gravely ill children and children with disabilities and helping sports organizations, such as FAKEL volleyball team and Yamal-Nenets figure skating federation, as well as organizing festivals in the Tazovsky and Purovsky municipalities.

Lukoil describes itself as one of the largest publicly traded, vertically integrated oil and gas companies in the world, accounting for around two percent of the world’s oil production and around one percent of the proved hydrocarbon reserves. Gazprom Neft is a vertically integrated oil company, primarily engaged in the exploration and development of oil and gas fields, oil refining and the production and sale of petroleum products, its website notes. Its largest shareholder is Gazprom, which holds a 95.68 percent interest, its site highlights.

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