Stroytransgaz could close deal on selling 50% of JV in Algeria to Rosneft by year-end
Interfax, 09.12.2011
PJSC Stroytransgaz expects to close a deal on selling 50% of the joint venture Rosneft-Stroytransgaz Ltd, which works in Algeria, to Rosneft (RTS: ROSN) by the end of the year, head of Stroytransgaz Sergei Makarov told journalists.
"We still want to sell it [the stake]. I think it will be by the end of the year," he said.
As before, the deal involves selling Stroytransgaz's stake in the joint venture, he said.
Stroytransgaz and Rosneft had previously held negotiations but were unable to reach an agreement on the price. Stroytransgaz was counting on wrapping up the deal at the end of 2009, at which time the deal was valued at $200 million. It planned to sell its stake in the context of withdrawing from its non-core assets.
In 2001, Rosneft-Stroytransgaz won Algeria's first international tender on exploring, developing and producing hydrocarbons at the 245-S block, which covers 6,548 square kilometers in the oil- and gas-bearing Illizi Basin. In order to develop the block, the joint venture created a consortium with the Algerian national corporation Sonatrach, in which the Algerian side received 40%, and the Russian side - 60%. Work is being carried out under the conditions of a production sharing agreement (PSA).
As a result of geological exploration conducted in 2004-2006, the East Takuazet, West Takuazet and North Tesselit fields were discovered at the site.
