Alliance will own a 51% stake in the JV and contribute producing assets in Volga-Urals region, while Repsol will hold the remaining stake and make an initial cash investment to support growth of the JV.
Repsol executive chairman Antonio Brufau said this cooperation with Alliance enables Repsol to increase its producing assets and obtain privileged access to assets in Russia.
In addition to the exploitation of the assets to be contributed by Alliance, the companies will seek opportunities for exploration and growth through producing assets in Russia.
The JV is subject to negotiation of final contractual terms, due diligence of the assets to be contributed by Alliance and the procurement of the relevant regulatory and corporate approvals.
The transaction is expected to be completed during 2011, Repsol said.
Repsol already holds a 3.47% stake in Alliance after the merger between Alliance and West Siberian Resources in 2008.
