Rosneft Buys up Outstanding Equity in ITERA Oil & Gas
Russia's Rosneft announced Tuesday that it has acquired the remaining 49 percent of fellow Russian firm ITERA Oil & Gas Company that it did not already own from Itera Holdings Limited for $2.9 billion.
ITERA is one of the largest independent producers of natural gas operating in the Commonwealth of Independent States and the Baltic.
Rosneft said that the consolidation of ITERA will improve the business efficiency of the two companies, while creating new opportunities for growth. In particular, Rosneft said, it will form a stable platform for the implementation of Rosneft's gas strategy, which is aimed at increasing gas production to 100 billion cubic meters per annum and transforming the company into the largest independent gas producer in the Russian Federation.
Rosneft said that following the deal it will be able to accelerate the development of the Kynsko-Chaselsk group of fields in the Krasnoselkupsk region of the Yamalo-Nenets autonomous district of Russia.
Rosneft President Igor Sechin said in a company statement:
"Gas business is one of the top priorities for the company. Consolidation of ITERA Oil and Gas Company LLC will have a significant multiplier effect on our future growth and generate additional synergies, which will ultimately increase the total capitalization of the company and bring additional value to shareholders."
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