Equinor acquires 49% stake in Russian onshore oil producer KrasGeoNaC

Equinor has completed its $550 million acquisition of a 49% stake in KrasGeoNaC (KGN) from Rosneft in a move that boosts its onshore presence in Russia.

KrasGeoNaC holds a dozen conventional onshore exploration and production licenses located across Eastern Siberia.

As part of the deal, Equinor said that it has redirected its remaining offshore exploration commitments in the Sea of Okhotsk and therefore has no outstanding obligations in that region.

One of the 12 licenses, the North Danilovsky development, began production in July 2020. The North Danilovsky project is expected to achieve production of 40,000 barrels of oil per day by 2024, with plans to ramp it up further to 70,000 barrels of oil per day.

Equinor acquires 49% stake in Russian onshore oil producer KrasGeoNaC from Rosneft. Map courtesy of Equinor ASA.