Gazrpom increases its share in Stimul to 51%
Gazprom, Victory Oil and Magnum Oil signed today a string of Agreements on Gazprom’s buying into a 12.8% stake of Stimul and mutual settlement of all the disputes between the companies. The Documents were signed by Alexander Ananenkov, Deputy Chairman of Gazprom’s Management Committee and Mark Getty.
Under the Papers signed, Gazprom will buy out a 12.8% stake of Stimul from Victory Oil. After executing this transaction, Gazprom and Orenburggazprom will increase their total share in Stimul’s share capital to 51%. The Agreements also stipulate mutual termination of all arbitrary proceedings between the parties. The deal is expected to be finalized over a couple of days.
At the same time, Victory Oil entered into an agreement to sell 49% of Stimul’s shares to a third party investor, with which Gazprom signed a Cooperation Agreement with the view of further promoting Stimul’s business and raising its capitalization.
“The adopted Agreements allow Gazprom to obtain a controlling stake of the core oil and gas business being an integral part of the Orenburg regional petrochemical integrated complex. We’re thankful to Victory and Magnum for their investments and work done to develop Stimul,” – stated Alexander Ananenkov.
“We’re content with the Agreement concluded with Gazprom and satisfied with our joint activities over the past few years within Stimul,” – said Mark Getty.
The Renaissance Capital Investment Group acted as Gazprom’s financial advisor for this transaction.
The Stimul company was founded in 1993 as a joint venture of Orenburggazprom (51%) and the US-based company Avalon International (49%).
In December 1996, Stimul obtained a license to develop the eastern oil fringe of the Orenburgskoye oil and gas condensate field.
In 2000, Stimul’s promoters resolved to issue additional shares and sell an Avalon International-owned stake of Stimul to the Victory Oil company that enters a network of businesses possessed by various Trusts of the Getty family.
As a result, in 2001, Orenburggazprom and Victory Oil’s share in Stimul accounted for 38.2% and 61.8%, respectively.
In 2003, Stimul recovered 352 thousand tons of oil and gas condensate and 240 million cubic meters of natural gas.
Stimul is closely integrated into Gazprom’s infrastructure and provides feedstock for Orenburggazprom and Salavatnefteorgsintez.
Information Directorate, OAO Gazprom