Repsol and NNK have agreed to group their Russian joint venture assets into a single management company to help optimise operational decision-taking, reduce costs and achieve maximum synergies from the partnership.

NNK President Eduard Khudaynatov and Repsol Chairman Antonio Brufau met in Madrid to sign the agreement and discuss new business opportunities.

The alliance between the companies is a platform in Russia for both partners to develop their oil and gas business, combining NNK’s knowledge and access to exploration and production business opportunities in Russia with Repsol’s know-how and technical capabilities.

The joint venture, AR Oil & Gas B.V. (AROG), owned 51% and 49% by NNK and Repsol respectively has an average production of 22,500 barrels of oil per day and 76 million standard cubic feet of gas per day in 2014. Under the agreement signed today, the Russian company ALREP, a subsidiary of AROG, will manage the joint venture’s assets and NNK will manage oil sales through a marketing agreement.