Rosneft and Alltech Finalized the Creation of the Joint Venture

Mineral licenses for the Kumzhinskoye and Korovinskoye fields as well as funds for the development of the project were affiliated to the JV. Rosneft obtained a majority stake in the JV.

The finalization of the creation of the JV was executed within the framework of the implementation of the updated commercial parameters for cooperation, signed between the parties within SPIEF-2015.

The JV will form the basis of the creation of a new high-technology gas production center in the Nenets Autonomous District, within which the implementation of different upstream, refining, marketing and supply to end customers’ projects are planned. The implementation of the project will allow boosting the investment potential of the region, creating new jobs and ensuring a substantial growth in tax revenues.

The development of the project represents a key element of Rosneft gas strategy. The advantageous location of the assets opens wide perspectives for marketing and monetization of the hydrocarbon potential.

Overall ABC1+C2 recoverable reserves of the Kumzhinskoye and Korovinskoye are 165 BCM of gas.