2 Dec 2009 13:48

Malka Oil shareholders to vote on production unit sale to Gazprom Neft Dec 17

MOSCOW. Dec 2 (Interfax) - Shareholders in Sweden's Malka Oil will vote on the sale of key production unit LLC STS-Service to Russia's Gazprom Neft on December 17, Malka Oil said in a statement.

Gazprom Neft is buying LLC STS-Service for $118 million. Malka Oil also said the subsidiary's debts would be transferred.

Gazprom Neft and Malka Oil have signed a binding protocol on the terms and procedure for the asset's sale.

The deal is also subject to shareholder approval and clearance from the Russian Federal Antimonopoly Service.

Malka Oil's directors have given their unanimous approval to the deal.

Malka Oil said that the shareholders would instruct the board to negotiate the sale of the asset on more beneficial terms by the time of the annual meeting if the sale is not approved on December 17.

Malka Oil was set up in 2005 by three Russian businessmen, Mikhail Malyarenko, Alexander Merko and Vakha Sobraliyev. It owns 99% of LLC STS-Service, which develops the Zapadno-Luginetskoye field. STS-Service also holds licenses to two oil sections in the Tomsk region. Its overall C1+C2 oil and gas condensate reserves are approximately 26 million tonnes.