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Rosneft Acquires Targin Oilfield Services Company

December 27, 2016/ 15:13

Moscow. Rosneft announces reaching an agreement with AFK Systema to acquire 100% of Targin shares. The price of the transaction will amount up to RUB 4.1 bln.

The deal was approved in accordance with Rosneft and AFK Systema corporate procedures. The closing of the deal will be subject to the approval of antitrust authorities of the Russian Federation, reports Rosneft.

This transaction is fully consistent with Rosnef's strategy to enhance the capacity of its in-house oilfield services business. The deal will increase the Company’s active rig fleet by 19%, and the number of well servicing and workover crews by 30%. The share of Rosneft in-house drilling services will grow by 60%, in the area of well works – by 40%.

Additionally, the Targin acquisition will further improve the economic efficiency of Bashneft's production assets and, as a result, will strengthen the synergy of this investment.

Commenting the agreements reached Rosneft Chief executive officer Igor Sechin said: "The development of the Company's oilfield services is one of our key priorities. Thanks to a steadily growing volume of in-house oilfield services performed, the Company is successfully maintaining the industry's lowest lifting costs."

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