MOSCOW (MRC) -- Gazprom Neft and Novatek are reported to be looking to boost their joint controlling stake in SeverEnergia in an apparent move to block any Rosneft bid to acquire a further interest in the coveted West Siberian gas producer, said Upstreamonline.
It follows a report last week that Italian giant Eni may now be looking to sell its 60% stake in the Arctic Russia joint venture, which holds a 49% interest in SeverEnergia, after compatriot utility Enel’s 40% share was acquired by Russian state-owned Rosneft for USD1.8 billion.
Rosneft now has a 19.6% stake in SeverEnergia through the deal with Enel, which reportedly also gives it the pre-emptive right to buy out Eni's holdings and thereby potentially boost its interest to 49%.
The remaining 51% in the gas producer is jointly held by Gazprom Neft, a subsidiary of Russian gas giant Gazprom, and Novatek, and the pair are now also said to be interested in buying Eni’s stake stake in Arctic Russia if it comes onto the market.
"The group, together with Novatek, is considering a possible increase of its stake in SeverEnergia through the purchase of an interest in SeverEnergia held directly or indirectly by third parties," Gazprom Neft said in a prospectus for a Eurobond offering cited by Reuters on Tuesday.
Competition is increasing for Russia’s gas reserves as the Kremlin prepares to open up liquefied natural gas exports to other players than Gazprom, which currently has an export monopoly, from early next year. SeverEnergia is expected to produce 36 billion cubic metres of gas and liquids by 2017.
Rosneft, which is Russia’s leading oil producer, aims to raise its gas output to 100 billion cubic metres by 2020 with plans to build a liquefied natural gas plant jointly with ExxonMobil on Sakhalin island in Russia's far east.
The SeverEnergia assets are believed to be of great importance to Novatek and would fit with its effort to develop the Yamal LNG export project, due on stream in 2017, together with France's Total and China National Petroleum Corporation (CNPC).
The Enel stake sale is said to have increased tensions between Novatek investor Gennady Timchenko, who was opposed to the deal, and Rosneft chief executive Igor Sechin.
MRC