Repsol Acquires Eurotek

Spanish company Repsol has said that it has purchased Russian oil and gas company Eurotek at a cost of approximately $230 million. 

The deal will see Repsol take control of two two gas fields that are in development in Western Siberia, the Syskonsyninskoye gas field and the Yuzhno-Khadyryakhinskoye gas field. The Syskonsyninskoye field is currently at an advanced stage of development with production expected for early 2012. The second field, the Yuzhno-Khadyryakhinskoye is still in the appraisal stage and is expected come on-stream by 2016.

The company says both fields have proven reserves of 115 million barrels of oil equivalent (mboe). 

Repsol will now incorporate Eurotek into the recently created Alliance Repsol Oil and Gas (AROG), a joint venture between Alliance Oil Company and Repsol.

Repsol holds a 49 per cent stake in AROG with Alliance holding a 51 per cent stake. Repsol also holds a 3.5 per cent stake in Alliance due to a previous merger between Alliance and West Siberian Resources.