Alliance Oil Company Ltd. and Repsol have completed the agreed transactions to form the joint venture company AR Oil and Gaz BV (AROG) in which Alliance Oil holds 51% and Repsol 49%. Alliance Oil Company has transferred its upstream company Tatnefteotdacha to AROG. Repsol has contributed Eurotek, to AROG and paid USD 81 million in cash to Alliance Oil.

AROG has a total asset base of approximately USD 885 million with proved and probable oil and gas reserves of 286 mboe. Through the completion of the transactions announced and in August 2012, Alliance Oil has contributed Volga-Urals upstream subsidiaries which comprise exploration and production licenses for 13 fields with proved and probable oil reserves of 1711 mbbl to obtain a 51% participation in AROG and receive net cash of USD 117 million. Repsol has contributed Eurotek, which comprises 2 gas exploration and production licenses, and also paid USD 117 million in cash to Alliance Oil to obtain a 49% participation in AROG.

Following the transactions, AROG has a total asset base of approximately USD 885 million with proved and probable oil and gas reserves of approximately 286 mboe.