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| 24 May, 2018

UAE's Mubadala to take stake in subsidiary of Russia's Gazprom

Middle East oil producers and Russia have forged closer ties since striking a deal to cut global crude output in a bid to remove a glut in supplies

A view shows the company logo of Gazprom company installed on the roof of its office building in Moscow, August 10, 2015. Gazprom, Russia's largest gas producer, posted a 71-percent increase in the first quarter net profit to 382.1 billion roubles ($5.91 billion), the company said on Monday.

A view shows the company logo of Gazprom company installed on the roof of its office building in Moscow, August 10, 2015. Gazprom, Russia's largest gas producer, posted a 71-percent increase in the first quarter net profit to 382.1 billion roubles ($5.91 billion), the company said on Monday.

REUTERS/Maxim Shemetov

MOSCOW: Abu Dhabi's state-owned Mubadala Investment Company has acquired a 44 percent stake worth at least $271 million in an oil subsidiary of gas giant Gazprom, the Russian company said on Thursday.

Middle East oil producers and Russia have forged closer ties since striking a deal to cut global crude output in a bid to remove a glut in supplies. The pact between OPEC, Russian and other producers has been implemented since January 2017.

Gazprom said its board of directors had agreed to sell 44 percent of its subsidiary Gazprom Neft-Vostok to Mubadala Petroleum, which is owned by the Mubadala fund in the United Arab Emirates.

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Russia's Kommersant newspaper had reported talks on the deal in February, saying Gazprom Neft-Vostok produced oil at six fields in Western Siberia's Omsk and Tomsk regions.

The Russian oil subsidiary's combined production declined by 3 percent to 1.64 million tonnes in 2017.

The stake in Gazprom Neft-Vostok would be sold for at least $271 million, according to Gazprom. Russian Direct Investment Fund (RDIF) acquired almost 5 percent.

(Reporting by Vladimir Soldatkin Editing by Edmund Blair) ((maria.tsvetkova@thomsonreuters.com; +7 495 775 1242;))