$US 2.4 BLN merger brings new oil giant to life

15 Jan, 2008 08:49 / Updated 16 years ago

Stockholm-listed West Siberian Resources has announced plans to merge with Alliance NK to create a new vertically-integrated Russian oil company.

The new company, estimated to be worth $US 2.4 BLN, would mix upstream and downstream operations in key Russian oil regions. Alliance, which currently runs an oil refinery in Russia's Far East, and WSR, which develops oil deposits, will jointly-own 430 million barrels of reserves. Production capacity would be about 51,000 barrels per day, and refining output would amount to 70,000 barrels per day. 255 filling stations would also be run by the new company.