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. Last Updated: 07/27/2016

Rosneft, Gazprom Form Venture

Rosneft and Gazprom's petrochemicals unit agreed Wednesday to form a venture to expand a West Siberian gas-processing plant.

Rosneft and Sibur will split ownership of the Yuzhno-Balyksk processing plant and double the volume of gas it can handle to 3 billion cubic meters per year, Rosneft said in a statement. The plant processes gas produced in association with crude oil drilling.

Companies are striving to cut waste by minimizing the burning off of associated gas. Rosneft says it plans to reach 95 percent use of associated gas at all its fields by 2010.

Rosneft CEO Sergei Bogdanchikov and Sibur CEO Dmitry Konov signed a preliminary agreement on the venture Monday.

The Yuzhno-Balyksk plant was opened in 1978 and processes gas from Yuganskneftegaz, which produces more than 10 percent of the country's crude oil. Rosneft acquired the unit in December 2004 after the government seized it from Yukos.