Rosneft Monetizes Gas Potential in Russia

Russia’s Rosneft confirmed its intention to sell a natural-gas processing venture acquired with its $55 billion TNK-BP purchase.

‘Under the agreement, Sibur will …  purchase a 49% share in the Yugragazpererabotka joint venture from RN-Holding, increasing its interest in the joint venture to 100%,’ reads a note released on Friday. 

At the same time, Rosneft will increase its associated petroleum gas (APG) supplies to Sibur in order to monetize its gas potential. The company will guarantee supply of up to 10 billion cubic meters a year of associated gas to the facility. 

The companies did not unveil the details of the transaction. According to Bloomberg, Rosneft could get as much as $2 billion for its share in Yugragazpererabotka,

Sibur will then sell dry gas produced at Nizhnevartovskiy and Belozerniy gas processing plants to Rosneft.

Yugragazpererabotka is a joint venture that owns and operates three gas processing plants -Nizhnevartovskiy, Belozerniy and Nyagangazpererabotka - along with the pipeline infrastructure that transports associated gas from compressor stations to the plants. The total capacity of Yugragazpererabotka's processing plants is 13.4 Bcm/year.