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In accordance with an agreement signed in Dec. 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 in the Samara region with total production of 1.1 million barrels of oil (MMb/o) in the second quarter of 2012 and 2P reserves of 38 MMb/o as of Dec. 31, 2011. Repsol has acquired shares in the joint venture from Alliance Oil for $36 million and has subscribed $37 million in new shares to reach a 49% stake in the joint venture company.
The agreement signed in Dec. 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 Co. and Repsol, respectively, will have a total asset base worth approximately $840 million.