Rosneft buys rest of gas firm Itera from founder for $2.9bn

City A.M. Reporter
ROSNEFT, Russia’s top oil producer, said yesterday it had bought the remaining 49 per cent of gas company Itera for $2.9bn (£1.9bn) from its founder, furthering its aim of becoming Russia’s largest independent gas producer.

Chief executive Igor Sechin wants to make Rosneft a global energy player and is aiming for output of 100bn cubic metres (bcm) of gas a year by 2020 from about 13 bcm last year, versus dominant gas producer Gazprom’s 479 bcm.

With Russia’s second-biggest gas producer Novatek, it is lobbying for access to export liquefied natural gas (LNG), a right held only by Gazprom. Rosneft and Novatek are planning new LNG facilities in Asia and Siberia respectively. Itera is Rosneft’s second big acquisition after its $55bn takeover of TNK-BP, once Russia’s number three oil producer.

Founder Igor Makarov built Itera up to be a top gas supplier to the former Soviet Union republics in the 1990s thanks to its good ties with his native Turkmenistan and his friendship with former Gazprom executive Rem Vyakhirev. After a management shake-up at Gazprom in the early 2000s, Itera’s business started to shrink, especially after Gazprom secured the monopoly on Russian gas exports in 2006. Russia, the world’s number one crude producer, has lost its pole position in gas production to the US in the last few years.

Moscow is trying to keep its global influence by promoting “gas OPEC”, the 13-member Gas Exporting Countries Forum.