Rosneft Acquires ALROSA Oil and Gas Assets

The agreement was signed by Rosneft President and Chairman of the Management Board Igor Sechin and President of JSC ALROSA Fedor Andreev in the presence of Prime Minister of the Russian Federation Dmitry Medvedev.

The transaction is valued at 1.38 bln USD. The acquisition of ALROSA assets will increase Rosneft recoverable gas reserves by more than 200 bcm and will give a boost to the Company’s Yamal Gas Cluster development.

Commenting on the agreement signed, Rosneft President and Chairman of the Management Board Igor Sechin said: “Gas business development is one of Rosneft strategic priorities, and acquisition of ALROSA oil and gas assets is perfectly in line with this strategy. It will also strengthen Rosneft positions in the Russian Far East – a region of great significance to the Company.”

Fedor Andreev, President of JSC ALROSA, said: “Decision to sell the gas assets was made in pursuance of ALROSA Group’s strategy which focuses on boosting diamond production capacities and gradual divestiture of non-core assets. Rosneft Oil Company has enormous expertise in oil and gas field development and already has practical experience working with ALROSA’s Urengoy-based companies. We believe that the arrival of Rosneft, as a new shareholder, would give a boost to further development of ALROSA’s oil and gas assets in the Yamalo-Nenets Autonomous District and Western Yakutia.”

Completion of the transaction is subject to corporate and regulatory approvals.