Rosneft oil company president Sergey Bogdanchikov has found a new investor for Sakhalin 3, and it may be Repsol.
Photo: Sergey Mikheev
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Repsol Heading for Russian Shelf
The Spanish company Repsol YPF is in negotiations with Rosneft on the purchase of 24 percent of the Venin block of Sakhalin 3. The cost of that package is around $70 million. Repsol is also ready to invest $64 million in exploration of the block this year. Repsol reported yesterday in a statement on the Madrid stock exchange that no agreement had been reached yet. The Financial Times reports, citing Antonio Brufau, chairman of Repsol, however, that an agreement may be announced this week. It is a rare chance for the company to renew its dwindling resources. The company’s current reserves are about 330 million tons of oil equivalent. Those reserves have decreased by 28 percent in the last three years.
A source close to the company explained that Rosneft needs additional investments in expensive geological exploration. The company says that it has no problems with its present project partner, the Chinese Sinopec, which is financing exploration. In May, the Indian press reported that the Indian company ONGC, Rosneft’s partner in Sakhalin 1, had bought a 23-percent share in Venin block.
The Venin block, near the Kirinsky, Ayashsky and Eastern Odoptinsky blocks, is part of the Sakhalin 3 project. The block contains 169.4 million tons of oil and 258.1 billion cu. m. of natural gas. Venin Holding Ltd. owns the license to the block. That company belongs to Rosneft (74.9%) and Sinopec (25.1%). Repsol has been active in Russia since 2006, when it bought 10 percent in West Siberian Resources. Repsol’s share in the company was reduced to 4 percent when it merged with Alyans oil company. Repsol has projects on sea shelves of the Gulf of Mexico, Trinidad and Brazil.
www.kommersant.com
All the Article in Russian as of July 09, 2008
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