Lundin Petroleum and its partner Gunvor Group (Gunvor) have entered into a Heads of Agreement with Rosneft Oil Company (Rosneft) to jointly sell 51 percent of LLC Petroresurs.
LLC Petroresurs is the 100 percent owner of the Lagansky block licence located in the Russian part of the Caspian Sea. The Lagansky block licence contains the Morskoye discovery with best estimate gross contingent resources of 157 MMboe. Lundin Petroleum currently has a 70 percent shareholding in LLC Petroresurs, with Gunvor holding the remaining 30 percent.
The Lagansky Block is 2,000 square kilometres in size and is located offshore in the north Caspian area, close to major world class hydrocarbon discoveries.
The consideration is related to historical costs spent on the Lagansky block licence by Lundin Petroleum and Gunvor, and will be made in deferred payments. After the transaction is completed, Lundin Petroleum will have an indirect 34.3 percent interest in the Lagansky block licence through its shareholding in LLC Petroresurs.
As part of the agreement, Rosneft and Lundin Petroleum have agreed to investigate possible cooperation in the Norwegian and Russian offshore sectors.
Ashley Heppenstall, President and CEO of Lundin Petroleum comments: “This transaction will allow the partners to realise the full potential of this exciting opportunity and to move forward with appraisal and development.”
Commenting on the signing, Igor Sechin, Rosneft President and Chairman, said: “The agreements reached will enable the parties to realize the full potential of this promising asset. We hope to continue fruitful cooperation with Lundin on other projects in the future.”
Press Release, October 03, 2013