Advance Capital announces the completion of acquisition of 56% in the gas production company “Uralneftegazprom” by Zarubezhneft

22 Dec
/ 2020

Advance Capital is pleased to announce the completion of acquisition of a majority stake (56%) in the Uralneftegazprom by Zarubezhneft. TRUST Bank acted as the seller in this transaction.

This transaction has become a logical continuation of the Memorandum of Strategic Partnership signed in 2019 for the Uralneftegazprom project. Acquisition of Uralneftegazprom is the next step in expanding the resource base and expertise in the gas sector for Zarubezhneft.

Overall, the projects in the Russian Federation in particular are considered by the company as testing grounds for developing the best solutions for use at the company's foreign assets. In addition, the new asset will become the basis for the development of personnel – professionals in the oil and gas industry, which can later be rotated to other assets of the company around the world.

Advance Capital acted as the exclusive financial advisor of Zarubezhneft.


Sergey Kudryashov, General Director of Zarubezhneft Group of Companies:

“This deal – the purchase of a non-core asset from the Bank, as well as the signing of the Memorandum of Strategic Cooperation – is a new experience for us, an important step both in terms of expanding our gas business and in terms of developing innovative technologies at the assets in the Russian Federation. We are pleased to expand our cooperation with Trust.”


Alexander Sokolov, President and Chairman of the Management Board of TRUST Bank:

“For Trust Bank, this is the first transaction with oil and gas assets. Our task was not only to sell the company, but also to find an industry-specific investor, who will be engaged in further development of the asset.”


Karen Dashyan, partner at Advance Capital:

“Acquisition of Uralneftegazprom is the right decision for Zarubezhneft in line with its development strategy for the production and sale of gas and condensate in the local region. This asset has all the necessary gas infrastructure in place and can serve as a platform for consolidating other assets in the region."


Alexey Pigarev, partner at Advance Capital:

“This transaction was one of the longest in the history of Advance Capital: several ownership changes in Uralneftegazprom, different project teams of the seller, with the configuration of the transaction itself changing during the deal process. However, it did not prevent us from achieving the main goal of acquiring a high-quality asset at the most comfortable terms for our client. Professional advice and a well-structured negotiation process significantly reduced the acquisition price for our client."


Information on Zarubezhneft

Zarubezhneft is a Russian oil and gas company of strategic importance having rich history and unique 50-years long experience of external economic activities. Its projects include operations offshore Vietnam in the framework of the joint venture Vietsovpetro, development of fields in the Nenets Autonomous Area in the framework of the joint company RUSVIETPETRO and Kharyaga field PSA, application of technologies for the development of fields in Cuba and activities in the downstream segment in the Republic of Srpska (Bosnia and Herzegovina).


Information on TRUST Bank

Trust Non-Core Assets Bank is a Russian financial institution with majority state participation, established as part of the activities of the Central Bank of the Russian Federation to rehabilitate the banking system. Founded in July 2018 based on TRUST National Bank by consolidating non-core assets of financial institutions undergoing rehabilitation. The Bank's activities are aimed at efficient asset management with the aim of their recovery, increase in market value and sale at the maximum price.


Information on Uralneftegazprom

Uralneftegazprom owns three license areas in the south of the Orenburg region, where three oil and gas condensate fields have been discovered: Kopanskoye, Chkalovskoye and Berdyanskoye. In 2019, the company produced 238 million m3 of gas and 44 thousand tons of oil and condensate.


Media reports

Kommersant article

Zarubezhneft press-release

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