Mubadala Petroleum in deal to develop Siberian oil fields

The project in Siberia is Mubadala Petroleum's first investment in the Russian oil and gas sector.

Mubadala Petroleum and the Russian Direct Investment Fund (RDIF) announced the creation of a joint venture with Gazprom Neft to develop several oil fields in the Tomsk and Omsk regions.
The announcement was made at the St Petersburg International Economic Forum 2018, currently being held in the Russian city.
Mubadala Petroleum, a wholly-owned subsidiary of Mubadala Investment Company, and the RDIF, the sovereign wealth fund of Russia, will acquire a 49 per cent equity stake in Gazpromneft-Vostok, the operator of the fields.
Mubadala Petroleum will hold a 44 per cent interest and the RDIF will hold the remaining 5 per cent interest. Completion of the transaction is subject to customary regulatory and internal approvals.
Proved and probable reserves of hydrocarbons in the fields are about 40 million tonnes (approximately 300 million barrels). Oil production was 1.6 million tonnes in 2017 (approximately 33,000 barrels per day).
The produced oil is sold into Russian domestic and international markets, and transported primarily through the Eastern Siberia-Pacific Ocean oil pipeline.
This project is Mubadala Petroleum's first investment in the Russian oil and gas sector.
Dr Bakheet Al Katheeri, CEO of Mubadala Petroleum, said: "This investment marks a further step in our long-term growth strategy and sees Mubadala Petroleum's entry into Russia. 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."
Kirill Dmitriev, CEO of the RDIF, said: "The 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. The 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."
Alexander Dyukov, chairman of Gazprom Neft, said: "Our company has vast experience in setting up joint ventures with international partners, but for the first time one of the largest investment funds of the UAE has invested in the Russian assets of Gazprom Neft. This transaction is of great importance, not only for our company, but for the whole industry."