The government commission on control over foreign investments in Russia has approved the application of China’s Beijing Gas for the acquisition of a 20% stake in Verkhnechonskneftegaz, a subsidiary of Rosneft, deputy head of the Federal Anti-Monopoly Service Andrei Tsyganov told reporters after the meeting of the commission.
“This is the first deal, which ended up with participation of the Chinese partners in the capital of Rosneft’s subsidiary. That is a big deal.
As a result, Rosneft gets more than $1 billion for a 20% stake and will use it for development of its main activities. The deal has been approved by the commission and will be completed in the near future,” he said.
Verkhnechonskneftegaz is a subsidiary of Rosneft exploring and developing Verkhnechonskoe oil and gas condensate field, one of the largest fields in East Siberia. The company is also an operator of licensed sites of Rosneft in the Irkutsk region. In summer of 2016, Rosneft and Beijing Enterprises Group Company signed an agreement setting the terms of cooperation as part of the Verkhnechonskneftegaz project.