Beijing Enterprises in deal to buy 20 pct Russian oil explorer for $1.1 bln

Beijing Enterprises Holdings

09/11/2016 24:37

HONG KONG, Nov 9 (Reuters) - Gas and water treatment 
operator Beijing Enterprises Holdings Ltd  0392.HK  said on 
Wednesday it would buy 20 percent of an oil and gas explorer in 
the Russian Federation from Rosneft Oil Company for $1.1 
billion, as the Chinese firm expands into oil and gas upstream 
sector. 
    The deal was signed in the presence of China's Premier Li 
Keqiang and the Prime Minister of the Russian Government Dmitry 
Medvedev earlier this week, the Hong Kong-listed firm said, when 
 the leaders met in promoting China-Russia ties. 
    Beijing Enterprises said it would buy the stake in 
Verkhnechonskneftegaz, which holds a license to develop the 
Verkhnechonsk oil, gas and condensate field in the Russian 
Federation. 
    The deal will allow the Chinese firm to have a share in one 
of East Siberia's largest producing fields and lays foundation 
for future cooperation with Rosneft Oil, including supply of gas 
to the Russian domestic market and export to China to meet the 
growing natural gas demand, the Chinese group added. 
 
 (Reporting by Donny Kwok; Editing by Michael Perry) 
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters 
Messaging: donny.kwok.reuters.com@reuters.net)) 
 
Keywords: BEIJING ENTEPRISES ROSNEFTOIL/