Rosneft sells gas-processing business

Rosneft has started to sell some of BP-TNK’s assets: it is going to sell 49% in the joint venture Yugragazpererabotka to Sibur. According to the Kommersant, the deal amount can reach $1.5 billion. In exchange for this, Sibur has agreed to an increase in theprice of associated petroleum gas, which it buys from the state-owned company – previously Rosneft found it understated. As a result, the parties will prolong contracts on raw material supply till 2032.

The Sibur holding company of Leonid Mikhelson and Gennady Timchenko has reported that it will buy a share in their (with Rosneft) joint venture Yugragazpererabotka from RN Holding, consolidating 100%. The companies also came to an agreement on an increase in the guaranteed supplies of associated petroleum gas from Rosneft’s fields to Yugragazpererabotka’s gas-processing plants to 10 billion cubic meters per year (till 2032 included). Previously the joint venture should receive 6.6 billion cubic meters till 2017 and 9.3 billion cubic meters after 2017. Rosneft declined to comment.