LONDON: Rosneft Oil Company and Equinor have completed a deal as result of which the Norwegian company acquired a 49% stake in Krasgeonats LLC.
Krasgeonats holds 12 exploration and production licenses for areas with conventional resources located in Eastern Syberia. Among them: Danilovsky (with North-Danilovskoye field), Preobrazhensky, Verkhneichersky, Mogdinsky, East-Sugdinsky, Sanarsky and several other license areas.
The deal is valued approximately at $550 million. According to the agreement, Equinor also undertakes a range of obligations to fund exploration campaigns on the sites subject to the agreement and a number of other payments.
Krasgeonats will continue to develop the North-Danilovskoye field, which is part of the deal. It is expected that the field output will plateau at 2 million tonnes of oil per year in 2024. The other license areas are on exploration and appraisal stage.
As per the arrangements agreed, all assets of Krasgeonats will be subject to the agreement on cooperation in industrial and fire safety, labour protection and environment signed by Rosneft and Equinor in 2018.