Spain's Repsol to acquire Russian oil and gas explorer Eurotek for $230 mn

Repsol YPF SA, Spain's largest oil producer, yesterday said that it will buy Russian oil and gas explorer Eurotek, for about $230 million, to expand in Western Siberia.

The deal comes ten days after the Madrid-based oil company formed a new joint venture called AROG with Russian-Kazakh peer Alliance Oil Co Ltd, where the Moscow-based company will contribute assets in the Volga-Urals region to AROG.

Repsol holds 49 per cent in the $840 million joint venture, while Alliance Oil holds the remaining 51 per cent.

The Eurotek transaction gives Repsol the advanced stage of development of Syskonsyninskoye and the Yuzhno-Khadyryakhinskoye gas fields in West Siberia.

Repsol plans to incorporate the Eurotek assets, which has 115 million barrels of oil equivalent in proven and probable reserves, into AROG.

Repsol holds a 3.5 per cent stake in Alliance following the 2008 merger between Alliance and West Siberian Resources, in which Repsol initially held 10 per cent.