UPDATE: Russia’s Rosneft may sell 20% in affiliate to China’s Beijing Gas

(releads, adds details in paragraph 2)

STRELNA VILLAGE, Leningrad Region/MOSCOW, Nov 7 (PRIME) -- Russian oil major Rosneft signed a cooperation agreement with China’s Beijing Gas Group, which envisages the sale of 20% in affiliate Verkhnechonskneftegaz, which develops the Verkhnechonskoye oil and gas condensate field in East Siberia, for a reference price of $1.1 billion, Rosneft said on Monday.

The deal shows the project’s valuation of $3.2 per barrel of hydrocarbon reserves, and it will be closed after approval by regulatory bodies. The deal will also allow Rosneft to get a chance to enter China’s gas market.

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