REPEAT: Russia’s EuroChem buys Astrakhan oil firm for 6.4 bln rbl

(Adds company’s full quote in second paragraph)

MOSCOW, Apr 2 (PRIME) -- Russian fertilizer maker EuroChem has completed the acquisition of 100% in Astrakhan Oil and Gas Company (AOGC) for 6.4 billion rubles, the company said in a statement Thursday.

 “The acquisition of AOGC is a further step towards strengthening our vertically-integrated business. It will provide EuroChem’s production facilities in Russia with in-house raw materials as the company continues to optimize production costs, increase competitiveness and reduce dependence on external suppliers. In particular, the project will help us hedge risks related to the rise in gas prices in southern Russia, where EuroChem has two production facilities. I am confident that this investment will have a long-term positive effect for both EuroChem and the Astrakhan Region,” CEO Dmitry Sterzhnev said as quoted by the company.

In February 2014, EuroChem purchased 20.1% in the company for 1.3 billion rubles. The request to purchase 100% in the company was filed by EuroChem to the Federal Antimonopoly Service in 2013, but it was approved only later in 2014.

In 2012, EuroChem bought gas producer Severneft-Urengoy, which provides up to 25% of annual group’s gas consumption.

Astrakhan Oil and Gas Company was established in 1999 by an affiliate of Guta Group to develop a deposit of the Astrakhan oil and gas condensate field with reserves standing at 220 billion cubic meters of gas and 20 million tonnes of oil. However, the development of the deposit was not started, as in 2004 Guta went bankrupt.

(58.3536 rubles – U.S. $1)

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