Sibur in agreement with Rosneft to acquire 49% interest in Yugragazpererabotka gas processing JV

26-Feb-14

Sibur, the giant Russian petrochemicals company 57.5% controlled by Russian billionaire Leonid Mikhelson, has reached an agreement with state owned Russian oil company Rosneft to acquire its’ 49% interest in their Yugragazpererabotka gas processing joint venture. The interest has been held by Rosneft-owned RN-Holding, formerly TNK-BP, as per jewishbusinessnews.com. The terms for the purchase of the Rosneft stake were not disclosed but analysts estimate the price may be in the range of between US$1-2 bln. After the deal closes Sibur will own 100% of the venture, and will continue to have access to guaranteed gas supply from Rosneft of up to 10 billion cubic metres/year of gas as feedstock for their plants under a new supply agreement now extending to 2032. The sale of the plant, which processes gas co-produced at some of Rosneft’s oil fields, known as APG, which stands for associated petroleum gas, will be among the first sale by Rosneft of assets it picked up in the US$55 billion acquisition of the TNK-BP joint venture last year. Dmitry Konov responded: “By signing the agreement with Rosneft to increase associated petroleum gas supplies, Sibur reaffirms its commitment to the corporate strategy of securing long-term access to feedstock. The extended tenor of the APG contracts highlights the strong ties between Sibur and Rosneft, which remains the key APG supplier for Sibur’s gas processing facilities.”