Aminex, the Dublin exploration company, has agreed to sell its stake in Ideloil, an oil company based in the Russian republic of Tatarstan, for $2.2 million (€1.78 million) cash, of which $1.2 million relates to loans and interest due to it.
The purchasers are Dolkano Holdings and Nereids Holdings.
Aminex says it will use the sale proceeds to enhance existing operations in the US and Tanzania and to explore new ventures.
In 2002, Ideloil yielded 676,000 barrels of oil. The volume of reserves at the close of that year was 10.2 million barrels.
Historically, Aminex has only benefited marginally from its Ideloil holdings, receiving minimum dividends from its accumulated share of Ideloil's $2 million profits.
Under the deal, Aminex has also agreed to end litigation against Ideloil, ongoing since March 2002. Aminex has contested the validity of a series of share issues that could potentially dilute its holding from 29 per cent to 10 per cent.
The disposal is in line with Aminex's long-term strategy of withdrawal from Russia. In 2001, the company sold off the bulk of its former Soviet Union holdings, reducing Ideloil to the status of non-core asset.
Exiting Russia will cut overheads substantially, freeing up resources for potentially more lucrative opportunities, said Aminex chief executive Mr Brian Hall.
