Anti-monopoly watchdog green-lights Rosneft purchase of Alrosa gas assets
MOSCOW. July 30 (Interfax) - Russia's Federal Anti-monopoly Service (FAS) has given Rosneft's TNK-BP Holding the go-ahead to acquire 100% of the stock in CJSC Geotransgaz and 100% of Urengoi Gas Company LLC from Alrosa , Russia's diamond monopoly, a FAS statement says.
Rosneft President Igor Sechin said not long ago that the state company was interested in acquiring the Alrosa gas assets. Sechin said Rosneft is busily growing its gas reserves and is engaged in the development of gas business. "We will try to actively monetize our resources. And that region is interesting to us," he said. "The domestic Russian gas market is premium, which is why it's a priority business direction for us, as are our future plans to develop LNG production and trade projects, particularly on the market of the Asia-Pacific region," he said.
The diamond monopoly consolidated 100% of both companies in the spring of 2012 by purchasing 90% of Geotransgaz and 90% of Urengoy Gas Company from VTB Capital for $1.037 billion and 10% each from Metropol for $100 million. In order to finance the transaction, Alrosa placed $1.26 billion in Eurocommercial Paper (ECP) in March 2012.
Geotransgaz started producing gas at the Beregovoye field in the Yamal-Nenets Autonomous District at the end of last year. The company has signed a contract with Rosneft until 2015, during which time the oil company will get around 7 billion cubic meters of gas.