Mubadala to acquire stake in subsidiary of Russia’s Gazprom
Project is Mubadala Petroleum’s first investment in Russian oil and gas sector
The Russian Direct Investment Fund (RDIF), the sovereign wealth fund of Russia, and Mubadala Petroleum will develop several oilfields in Siberia through the creation of a joint venture with a subsidiary of Russian oil giant Gazprom.
According to an announcement yesterday, RDIF and Mubadala Petroleum will acquire a 49 per cent equity stake in Gazpromneft-Vostok, the operator of the fields in the Tomsk and Omsk regions in Siberia.
Mubadala Petroleum will hold a 44 per cent interest and RDIF will hold the remaining 5 per cent interest. This project is Mubadala Petroleum’s first investment in the Russian oil and gas sector.
“This investment marks a further step in our longterm growth strategy and sees Mubadala Petroleum’s entry into Russia,” said Dr Bakheet Al Katheeri, CEO of Mubadala Petroleum, in a statement.
“Through this new partnership with RDIF and Gazprom Neft, one of Russia’s leading operators, we will not only share but also further build on our expertise and capabilities in oil and gas while adding significant oil production to our existing oil and gas portfolio.”
Through this new partnership with RDIF and Gazprom Neft, one of Russia’s leading operators, we will not only share but also further build on our expertise and capabilities in oil and gas.” Dr Bakheet Al Katheeri | CEO of Mubadala Petroleum
Reserves
The Siberian oilfields have proved and probable reserves of about 40 million tonnes. Oil production was 1.6 million tonnes in 2017 (around 33,000 barrels per day).
The oil is sold in Russian domestic and international markets, and transported primarily through the Eastern Siberia-Pacific Ocean pipeline.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF) added: “RDIF and Mubadala Petroleum investment in a joint venture with Gazprom Neft brings the experience and expertise of our Middle East partners to the Russian oil and gas sector. RDIF, Mubadala Petroleum and Gazprom Neft see this project as the first step in creating a consortium to pursue further significant investments in the sector.”