Mubadala Petroleum is nearing a deal with Rosneft, Russia’s largest oil company, to develop two oilfields in Siberia, according to Russian government officials.
The announcement comes ahead of a planned meeting this week between Vladimir Putin, Russia’s president, and Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces.
The deal would be the culmination of a tie-up announced in May last year when Mubadala Petroleum and Rosneft agreed to cooperate on oil developments in Russia, as well as joint projects in other countries.
Rosneft carries the largest debt burden among Russian companies, according to Bloomberg.
Siberian oil and gas prospects require hefty investment and have been the focus of the Russian company’s deal-making efforts.
In June, Rosneft signed a number of deals with BP, its largest shareholder, including the sale of a 20 per cent share of Taas-Yuryakh Neftegazodobycha, its main Siberian unit, which includes the Srednebotuobinskoye oilfield.
The investment would be the first in Russia for Mubadala Petroleum.
amcauley@thenational.ae
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