Mubadala Petroleum, Gazprom Neft, and the Russian Direct Investment Fund (RDIF) have agreed to set up a joint venture (JV) to develop oilfields in Siberia, Pipeline Oil and Gas Magazine reported.

Gazprom sold a 49% stake in its subsidiary Gazpromneft-Vostok LLC, the operator of 13 fields in the Tomsk and Omsk regions of Siberia. Mubadala and the RDIF now hold 44% and 5% respectively, while Gazprom Neft retains a 51% interest in the JV.

The agreement marks Mubadala’s first investment in the Russian oil and gas sector.

“One promising area for joint work here being developing technologies for the profitable development of pre-Jurassic hydrocarbon resources in the Tomsk Region,” Alexander Dyukov, CEO of Gazprom Neft, stated.

Kirill Dmitriev, CEO of the RDIF, said: “We welcome Mubadala Petroleum’s first investment in Russia. We expect this transaction to become the basis for further investments by the consortium created by RDIF, Mubadala Petroleum and Gazprom Neft. Participation of Mubadala Petroleum in the consortium will bring funds, experience and expertise of our Middle East partner to the Russian oil and gas sector.”

The three parties will now work to form a joint strategy for increasing efficiency of exploration and production activities at the fields and at the pre-Jurassic hydrocarbon deposits.