Araca Energy in Russian acquisition

Norway’s Araca Energy is to acquire Russia’s Geopromneft, the company announced on Monday, a move that will further reinforce the company’s presence on the Russian oil and gas market.

This is Araca’s second Russian acquisition this month after a merger with Petrarko, which was announced on September 7. Anarco said the owners of the Russian companies are to get a stake of 75-80% in the merged entity, which will apparently include both Petrarko’s and Geopromneft’s assets.

Through the acquisition of these junior independent upstream players, Araca ambitions to create the base to develop a major independent player in Russia before expanding operations to other markets, such as the Middle East.

Oslo-headquartered Araca Energy holds, through its subsidiaries, three exploration and production licenses in the Timan-Pechora region in Northwest Russia.
Geopromneft holds 94 million boe of C1/C2 reserves on the Klintsovsky oilfield in Russia’s Saratov region and is looking to bring the field on line at a rate of 1,700 boepd after it acquires a production licence.
Petrarko currently holds seven licences in the Orenburg region and has proven and probable reserves of 250 million boe, as well as a daily output of 5,500 boe.