Alliance Oil has contributed its Tatnefteotdacha subsidiary, with brownfield upstream assets located in the Tatarstan region with total production of 3.3 mbbl in 2012 and proved and probable oil reserves of 132.7 mbbl, to AROG.
Repsol has contributed its Eurotek subsidiary, with proved and probable gas reserves of 115 mboe to AROG and also paid USD 81 million in cash to Alliance Oil. As previously announced, in August 2012 the first stage of the
joint venture formation was completed, when Alliance Oil contributed its Samara-based upstream subsidiary Saneco to AROG.
In summary, through the completion of the transactions announced today and in August 2012, Alliance Oil has contributed Volga-Urals upstream subsidiaries which comprise exploration and production licenses for 13 fields with proved and probable oil reserves of 171 mbbl to obtain a 51% participation in AROG and receive net cash of USD 117 million. Repsol has contributed Eurotek, which comprises 2 gas exploration and production licenses, and also paid USD 117 million in cash to Alliance Oil to obtain a 49% participation in AROG.
Following the transactions, AROG has a total asset base of approximately USD 885 million with proved and probable oil and gas reserves of approximately 286 mboe.
Alliance Oil will continue to consolidate the subsidiaries Tatnefteotdacha and Saneco in its financial statements. Eurotek will be reported as investment in associates and joint ventures and incorporated into the financial statements
under the equity method.
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Caspian Region Projects
