It is Mubadala Petroleum’s first Russian oil and gas sector investment.
UAE’s Mubadala Petroleum is a part of a new joint venture to develop several oil fields in Siberia.
Mubadala Petroleum, the oil and gas exploration and Production Company has paired with the Russian Direct Investment Fund (RDIF) and Gazprom Neft to develop the oil fields in the Tomsk and Omsk regions.
It is Mubadala Petroleum’s first Russian oil and gas sector investment.
Mubadala Petroleum will hold 44 percent interest and RDIF will hold the rest 5 percent interest and the completion of the transaction is subject to customary regulatory and internal approvals. The agreement was made public at the St Petersburg International Economic Forum.
A statement said that proved and probable reserves of hydrocarbons are about 40 million tons in the fields (approximately 300 million barrels).
It added that the oil production was approx 1.6 million tons in 2017 i.e. about 33,000 barrels per day. The oil produced is sold at Russian domestic and international markets, and are transported through the Eastern Siberia-Pacific Ocean oil pipeline.
CEO of Mubadala Petroleum, Dr Bakheet Al Katheeri, 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 capabilitiUAEes in oil and gas while adding significant oil production to our existing oil and gas portfolio. "
CEO of RDIF, Kirill Dmitriev added, "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. 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."
