OREANDA-NEWS. August 24, 2012. Alliance Oil Company has transferred its upstream company Saneco to the joint venture with Repsol.  Repsol contributed USD 37 million in cash to the joint venture and paid USD 36 million in cash to Alliance Oil.  Alliance Oil holds a 51% stake and Repsol has a 49% stake in the joint venture.

In accordance with an agreement signed on December 20, 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 contributed its Saneco subsidiary, with brownfield upstream  assets located in the Samara region with total production of 1.1 million  barrels of oil (Mbbl) in the second quarter of 2012 and 2P reserves of 38 Mbbl  as of December 31, 2011. Repsol has acquired shares in the joint venture from  Alliance Oil for USD 36 million and has subscribed USD 37 million 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 USD 840 million.

The joint venture will serve as a growth platform for both companies in the  Russian Federation, the world's largest oil and gas producer. The JV seeks to  combine Alliance Oil's knowledge and access to exploration and production  business opportunities in Russia with Repsol's know-how and technical  capabilities to create a long-term exploration and production partnership.