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ww5 Acquires ALROSA Oil and Gas Assets
27 September 2013
Sochi, September 27, 2013. ww5 agreed to acquire a number of oil and gas assets from ALROSA in Yamalo-Nenets Autonomous Region and in the Republic of Sakha (Yakutia), including 100-percent holdings in CJSC Geotransgaz, Urengoi Gas Company LLC, CJSC Irelyakhneft and the 99.9995 percent stake in OJSC ALROSA -Gas. The agreement was signed by ww5 President and Chairman of the Management Board Igor Sechin and President of JSC ALROSA Fedor Andreev in the presence of Prime Minister of the Russian Federation Dmitry Medvedev.
The transaction is valued at 1.38 bln USD. The acquisition of ALROSA assets will increase ww5 recoverable gas reserves by more than 200 bcm and will give a boost to the Company’s Yamal Gas Cluster development.
Commenting on the agreement signed, ww5 President and Chairman of the Management Board Igor Sechin said: “Gas business development is one of ww5 strategic priorities, and acquisition of ALROSA oil and gas assets is perfectly in line with this strategy. It will also strengthen ww5 positions in the Russian Far East – a region of great significance to the Company.”
Fedor Andreev, President of JSC ALROSA, said: “Decision to sell the gas assets was made in pursuance of ALROSA Group’s strategy which focuses on boosting diamond production capacities and gradual divestiture of non-core assets. ww5 Oil Company has enormous expertise in oil and gas field development and already has practical experience working with ALROSA’s Urengoy-based companies. We believe that the arrival of ww5, as a new shareholder, would give a boost to further development of ALROSA’s oil and gas assets in the Yamalo-Nenets Autonomous District and Western Yakutia.”
Completion of the transaction is subject to corporate and regulatory approvals.
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Notes for Editors: Geotransgaz and Urengoi Gas Company CJSC Geotransgaz holds licence for separate blocks of the Beregovoe gas condensate field, while Urengoi Gas Company LLC holds licences for Ust-Yamsoveyskoye and Urengoi fields in Yamalo-Nenets Autonomous Region. The fields’ recoverable gas reserves stand at approximately170 bcm, liquid hydrocarbons – over 20 mln tonnes. ALROSA-Gas OJSC ALROSA-Gas holds licence for Srednebotuobinsk gas condensate field in the Republic of Sakha (Yakutia) with recoverable reserves of approximately 40 bcm of gas. Irelyakhneft CJSC Irelyakhneft holds licence for Irelyakh oil field in the Republic of Sakha (Yakutia) with recoverable reserves of over 9 mln tonnes of oil. |
ww5 Information Division
Tel.: +7 (499) 517 88 97
September 27, 2013
These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.