Rosneft acquires strategic asset in Khanty-Mansiysk autonomous district in Russia

Rosneft has closed the acquisition of 100% stake in the Kondaneft project, which is developing the Kondinsky, Zapadno-Erginsky, Chaprovsky and Novo-Endyrsky licence areas located in the Khanty-Mansiysk autonomous district of Russia.

The acquisition price of 100% of the project company’s equity capital will be nearly RUB40bn ($0.7bn) and the cost of acquisition per barrel of reserves will be approximately $1 per barrel.

This latest acquisition complies with the company’s strategy to maximise efficiency of resource development at Rosneft operations with developed infrastructure.

According to the international reserves audit conducted by DeGolyer and MacNaughton, the oil reserves at the Kondinsky group of fields (2R) are estimated to be 157mmt of oil.

Rosneft has planned to start production from the Kondaneft fields this year, which will give a substantial boost to its consolidated production indicators.

The Kondaneft group of fields is situated approximately 100km from its Priobskoye field and is adjacent to Erginskoye field.

The company stated that an integrated approach to the development of the Kondinskoye group of fields and the Erginskoye field will generate high synergy and accelerated development of the resource potential of the fields, given the infrastructure already created within the Kondaneft project, as well as RN-Yuganskneftegaz’ existing resources and the developed infrastructure.

Rosneft claimed that the commencement of operations at the Kondaneft project this year will introduce one of the most promising production clusters in the Russian oil and gas industry.

The transaction has already received the necessary approvals from the Federal Antimonopoly Service of the Russian Federation.