MOSCOW, July 2, 2013: Rosneft and members of Itera Oil and Gas Company LLC, announced today Rosneft's acquisition of the remaining 49% of Itera Oil and Gas Company LLC from Itera Holdings Limited for $2.9 billion, increasing Rosneft's share in Itera Oil and Gas Company LLC to 100%.
Itera Oil and Gas Company LLC was a joint venture that Rosneft and Itera Oil and Gas Company created in August 2012 to develop gas fields in the gas-rich Yamalo-Nenets autonomous region in the Russian Arctic. Morgan Lewis assisted Itera with the formation of the joint venture in 2012.
Consolidation of the company creates a stable platform for the consistent implementation of Rosneft's strategy aimed at increasing its gas production to 100 billion cubic meters (bcm) per year and transforming Rosneft into the largest independent gas producer in the Russian Federation. Following the deal, Rosneft will be able to accelerate development of the Kynsko-Chaselsk group of fields. Itera's forecasted gas output for 2013 is 13 bcm.
Morgan Lewis advised Itera on the transaction led by partners from Moscow office Roman Dashko and Dina Kzylkhodjaeva. The team on the project also included partner Jonathan Hines, London associate Jayne McGlynn, Moscow associate Lisa Lipsky, trainee Ksenia Lopatkina and associate Alexander Marchenko.
For further information about the transaction, please see Rosneft's press release.