May 24, 2018 / 6:52 AM / 25 days ago

UAE's Mubadala to take stake in subsidiary of Russia's Gazprom

MOSCOW (Reuters) - Abu Dhabi’s state-owned Mubadala Investment Company [MUDEV.UL] has acquired a 44 percent stake worth at least $271 million (203 million pounds) in an oil subsidiary of gas giant Gazprom (GAZP.MM), the Russian company said on Thursday.

A flag with the logo of Russian gas giant Gazprom flies in front of Zagorsk Pipe Plant (ZTZ) outside Moscow, Russia May 29, 2017. REUTERS/Sergei Karpukhin

Middle East oil producers and Russia have forged closer ties since striking a deal to cut global crude output in a bid to remove a glut in supplies. The pact between OPEC, Russian and other producers has been implemented since January 2017.

Gazprom (GAZP.MM) said its board of directors had agreed to sell 44 percent of its subsidiary Gazprom Neft-Vostok to Mubadala Petroleum, which is owned by the Mubadala fund in the United Arab Emirates.

    Russia’s Kommersant newspaper had reported talks on the deal in February, saying Gazprom Neft-Vostok produced oil at six fields in Western Siberia’s Omsk and Tomsk regions.

    The Russian oil subsidiary’s combined production declined by 3 percent to 1.64 million tonnes in 2017.

    The stake in Gazprom Neft-Vostok would be sold for at least $271 million, according to Gazprom. Russian Direct Investment Fund (RDIF) acquired almost 5 percent.

    Reporting by Vladimir Soldatkin; Editing by Edmund Blair

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