Rosneft Takes Over Gas Producer Itera in $2.9 Bln Deal

Rosneft completed its takeover of Russia’s third largest crude producer TNK-BP in spring to become the world’s largest publicly traded oil and gas company. It bought the 49 percent stake in the Itera gas producer from Itera Holdings Limited.

"The consolidation of Itera Oil and Gas Company LLC improves business efficiency and creates new opportunities for growth. It forms a stable platform for the consistent implementation of Rosneft’s gas strategy aimed at increasing gas production to 100 bcm per annum and transforming Rosneft into the largest independent gas producer in the Russian Federation,” Rosneft said in a statement.

The deal will allow Rosneft to accelerate the development of the Kynsko-Chaselsk group of oil and gas fields in northern Russia.

"The gas business is one of the company’s top priorities,” Rosneft CEO Igor Sechin said.

"The consolidation of Itera Oil and Gas Company LLC will have a significant multiplier effect on our future growth and generate additional synergies, which will ultimately increase the company’s total capitalization and bring additional value to shareholders.”