Rosneft announced in a press release that it has agreed to acquire a number of oil and gas assets from ALROSA in the Yamalo-Nenets autonomous region and in the Republic of Sakha (Yakutia), including 100% holdings in CJSC Geotransgaz, Urengoi Gas Co. LLC and CJSC Irelyakhneft and a 99.9995% stake in OJSC ALROSA-Gas. The agreement was signed by Igor Sechin, Rosneft president and chairman of the management board, and Fedor Andreev, president of JSC ALROSA, in the presence of Prime Minister of the Russian Federation Dmitry Medvedev.

The transaction is valued at US $1.38 billion, according to the press release. The acquisition of ALROSA assets will increase Rosneft recoverable gas reserves by more than 200 Bcm (7 Tcf) and will give a boost to the company’s Yamal Gas Cluster development.