RDIF, Mubadala Petroleum and Gazprom Neft announce completion of an investment to jointly develop oil fields in Western Siberia

Press release, 05.09.2018

St Petersburg, 5 September 2018 – The Russian Direct Investment Fund (RDIF, the sovereign wealth fund of the Russian Federation), Mubadala Petroleum and Gazprom Neft have announced the completion of an investment establishing a joint venture to develop oil fields in the Tomsk and Omsk regions of Western Siberia on the base of Gazpromneft-Vostok LLC.

Further to the agreement announced on 24 May 2018, Gazprom Neft has completed its sale of a 49-percent interest in Gazpromneft-Vostok LLC, operator of 13 fields, to Mubadala Petroleum and RDIF. Following the completion of this transaction, Gazprom Neft now holds a 51-percent interest in the joint venture, with Mubadala Petroleum and RDIF holding 44-percent and 5-percent equity respectively. Gazpromneft-Vostok remains a subsidiary of Gazprom Neft, and will continue to operate the oil fields.

The Gazpromneft-Vostok joint venture represents Mubadala Petroleum’s first investment in the Russian oil and gas sector.

The partners will determine the long-term strategy of the joint venture, focussing on efficiencies in exploration and production activities at the fields as well as at pre-Jurassic hydrocarbon deposits.

Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said:
"We welcome Mubadala Petroleum’s first investment in Russia. We expect this transaction to become the basis for further investments by the consortium created by RDIF, Mubadala Petroleum and Gazprom Neft. Participation of Mubadala Petroleum in the consortium will bring the funds, experience and expertise of our Middle East partners to the Russian oil and gas sector."

Dr. Bakheet Al Katheeri, CEO of Mubadala Petroleum, said:
"The acquisition of a 44 percent interest in the Gazpromneft-Vostok joint venture is another important step in Mubadala Petroleum’s drive for sustainable and profitable growth by marking our entry into Russia and adding valuable oil production to our existing portfolio. Partnering with Gazprom Neft, a leading Russian operator, and RDIF will not only provide us with significant co-investment opportunities, but also further develop our own oil and gas expertise and capabilities as well as exploration and production technologies."

Alexander Dyukov, CEO, Gazprom Neft PJSC, commented:
"This first investment by one of the largest oil and gas companies in the United Arab Emirates, Mubadala Petroleum, in a Russian asset is certainly a landmark event for the industry. Through our partnership with Mubadala Petroleum and RDIF we will not only be focussing on improving the current business performance of Gazpromneft-Vostok, but will also be looking for new opportunities to develop it further. One promising area for joint work here being developing technologies for the profitable development of pre-Jurassic hydrocarbon resources in the Tomsk Region. We see Mubadala Petroleum and RDIF as strategic partners, and expect to deliver mutually beneficial results from combining our financial and technological resources."

Proved and probable hydrocarbons at Gazpromneft-Vostok fields stand at approximately 40 million tonnes (SPE-PRMS, approximately 300 million barrels). Oil production in 2017 totalled 1.6 million tonnes (approximately 33,000 barrels per day). The produced oil is sold into the Russian domestic and international markets and transported primarily through the Eastern Siberia— Pacific Ocean oil pipeline, as well as being sent for processing at Russian refineries.

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The Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Further information can be found at www.rdif.ru

Mubadala Petroleum is an international, upstream oil and gas exploration and production company, headquartered in Abu Dhabi, and a wholly-owned subsidiary of Mubadala Investment Company (Mubadala). Mubadala Petroleum manages assets and operations now spanning 10 countries with a primarily geographic focus on the Middle East, Southeast Asia and Russia. In 2017, the company’s average working interest production was around 320,000 barrels per day of oil equivalent. Mubadala Petroleum’s success is built on strong partnerships, the passion and capability of its people, and its focus on performance. For more information, please visit www.mubadalapetroleum.com

Gaspromneft-Vostok LLC: Registered in the Russian Federation on 14 September 2005, Gazpromneft-Vostok has been active in hydrocarbon production in the Tomsk and Omsk Regions since 2005, as operator of a group of oil and gas fields located in the region and whose future production potential derives mainly from pre-Jurassic deposits.
The company holds subsoil usage licenses to the Shinginsky, Zapadno-Luginetsky, Yuzhno-Pudinsky, Archinskiy, Urmansky, and Krapivinskoye licence blocks, and was awarded a further subsoil usage licence for geological prospecting at the Parabelsky block in 2017. Thirteen oil fields have been discovered within the territory of these licence areas.

PJSC Gazprom Neft is a vertically integrated oil company. The main activities are exploration and development of oil and gas fields, oil refining, production and marketing of petroleum products. The structure of Gazprom Neft includes more than 70 oil producing, refining and marketing enterprises in Russia, CIS countries and far abroad.
The company has 2.78 billion tons of oil equivalent according to international standards SPE-PRMS - Gazprom Neft in terms of proven and probable reserves of hydrocarbons and is among the world's 20 largest oil and gas companies. In terms of oil production and refining, Gazprom Neft is among the three largest companies in Russia. In 2017, the company produced 89.75 million tons of oil equivalent, the processing volume was 40.1 million tons.
Products of Gazprom Neft are exported to more than 50 countries around the world and are sold throughout the Russian Federation and abroad. The company's gas station network includes more than 1,850 stations in Russia, CIS countries and Europe.

For additional information contact:
Arseniy Palagin
Russian Direct Investment Fund
Press Secretary
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
E-mail: arseniy.palagin@rdif.ru

Andrew Hayes / Andrew Leach
Hudson Sandler
Tel: +44 (0) 20 7796 4133

Mubadala Petroleum
Angela Soeteber
Acting Head Communications
M: +65 9018 2071
E-mail: angela.soeteber@mubadalapetroleum.com