By Joanne Chiu

Beijing Enterprises Holdings Ltd. (0392.HK) has agreed to buy a stake in an oil & gas unit of Russia's state-controlled oil giant Rosneft Oil Co. (ROSN.MZ) for US$1.1 billion.

China's Beijing Enterprises Holdings said Wednesday that it will buy a 20% stake or 6.90 million shares in Verkhnechonskneftegaz from Rosneft Oil, as the state-owned utility investor seeks to further expand into the oil & gas upstream sector.

The move would allow the company obtain a share in one of East Siberia's largest producing fields and bring solid and stable profit contribution as well as cash flow to the company, it said.

Write to Joanne Chiu at joanne.chiu@wsj.com

(END) Dow Jones Newswires

November 08, 2016 20:40 ET (01:40 GMT)

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