There has been an announcement that a joint deal shall be struck by Spain’s Repsol and Russian oil giant Alliance Oil.

It has been revealed that they shall start up a joint venture in Russia, for the production of oil in Russia.

It has been further revealed that Repsol shall have 49% stakes of the venture. The Russian firm shall hold the rest of the 51%. There is an expectancy that the Alliance Oil shall account for the assets in the Volga Urals region whereas the other firm shall pay a sum of $ 200 million for joining the equity as well as for the payment of a further $ 200 million for buying stocks in the new business enterprise.

The two firms shall also join hands for the exploration of new oil deposits. “This cooperation with Alliance Oil enables Repsol to increase its producing assets and obtain privileged access to assets in the country, home to some of the largest hydrocarbon resources in the world, reinforcing this growth vector of our group” , said Repsol Executive Chairman, Antonio Brufau.

This new endeavor shall pay its contribution towards enhancing the business ties between the two countries and make way for positive developments for both their markets.