Chinese Beijing Gas to buy 20% stake in Irkutsk deposits for $1.1 billion
Almaty. November 8. Silkroadnews – Chinese Beijing Gas will purchase a 20% stake in “Verkhnechonskneftegaz” (VCNG) from “Rosneft” for $1.1 billion, “Vedomosti” writes.
It makes $3.2 per barrel of hydrocarbon reserves. VCNG holds the license for “Verkhnechonskoe” field with 173 million tonnes of oil and gas condensate reserves and 115 billion cubic meters of gas. As of the end of 2015 VCNG has extracted more than 8.6 million tonnes of oil.
“The deal will allow “Rosneft” to realize the potential of Verkhnechonskoe field development, including production of natural gas, and consolidate the strategic partnership with one of the largest distributors of natural gas in China”, “Rosneft” officials reported.
As a result of the deal “Rosneft” could enter the gas market in China, including the end consumer, using swap gas supplies, the report says.
Beijing Gas operates more than 20 gas projects in China, owns a marine terminal for storage and handling of liquefied petroleum gas in Guadao of 6 million tonnes per year design capacity.
Open Joint Stock Company “Verkhnechonskneftegaz” (JSC “VCNG”) is operating in exploration and development of Verkhnechonskoe oil and gas field, one of the largest in Eastern Siberia, located in the Katanga region of the Irkutsk oblast, about 440 kilometers north-west of Ust-Kut city. “Rosneft” controls 99.94% of shares of JSC “VCNG”.
