Gazprombank Buys JV Stake from SOCO International

SOCO International's 100% owned subsidiary, SOCO North Africa Limited and Oilinvest (Netherlands) B.V., have signed a Heads of Agreement, subject to contract, with Joint Stock Bank of the Gas Industry Gazprombank for Gazprombank to acquire the entire issued share capital of OILSOC Investment Company Limited, a company currently owned by Oilinvest (55%) and SOCO NA (45%).

OILSOC's assets consist entirely of its 20% shareholding in ODEX Exploration Limited, a specific purpose upstream joint venture formed by Oilinvest and SOCO NA to identify, develop, produce and market hydrocarbon opportunities in Libya and other countries. Under terms of the HOA, SOCO NA would receive US$2,454,550 for its net interest in OILSOC. Following completion of the transaction, the ODEX shareholders will be Oilinvest (46%), SOCO NA (34%) and Gazprombank via its OILSOC purchase (20%).

The transaction is subject to formal documentation and approval by the necessary regulatory authorities amongst other things.

Ed Story, President and Chief Executive of SOCO, commented: "We are very pleased to have Gazprombank join the ODEX joint venture. We believe that their expertise in gas handling and production will be invaluable to the group. We also believe that the relationships and financial capability they add to ODEX will only improve an already formidable consortium."