German utility company E.ON AG (EOAN.XE) said Friday that it has finalized an agreement with OAO Gazprom (GAZP.RS) to participate in the Yuzhno Russkoye gas field in Siberia.
Alexej Miller, chief executive officer of OAO Gazprom, and Bernhard Reutersberg, CEO of E.ON Ruhrgas AG, signed a detailed agreement to that effect at a meeting in St. Petersburg.
E.ON's acquisition of just under 25% in Yuzhno Russkoye is to be completed this year. In return, Gazprom will take over from E.ON Ruhrgas its 49% interest in the Russian company ZAO Gerosgaz, which holds almost 3% of the Gazprom shares.
Via Gerosgaz, E.ON Ruhrgas is economic owner of that share package, which will be transferred to Gazprom ownership. The company continues to hold 3.5% of the Gazprom shares.
With gas reserves exceeding 600 billion cubic meters, Yuzhno Russkoye is one of the world's largest gas fields. The owner of the production license and field operator is Russia's OAO Severneftegazprom, in which Gazprom will in the future have a stake of just over 50%, while E.ON Ruhrgas and Wintershall AG will each hold nearly 25%.