In accordance with an agreement signed in December 2011 Repsol and Alliance Oil have completed the first phase of their joint hydrocarbon exploration and production venture with the integration of Alliance assets and the acquisition of shares by Repsol.
Alliance Oil has transferred its upstream company Saneco to the joint venture and Repsol has acquired shares in the joint venture from Alliance Oil for US$36m and has subscribed US$37m in new shares to reach a 49% stake in the joint venture company.
The agreement signed in December 2011 further envisions the contribution of Tatnefteotdacha by Alliance Oil and the contribution of Eurotek and cash by Repsol, which are expected to be completed in the fourth quarter of 2012. Following the completion of these transactions, the joint venture which is owned 51% and 49% by Alliance Oil Company and Repsol respectively, will have a total asset base worth approximately US$840m.