At the end of 2020, Neftegazholding (NNK) was a minor, but heavily indebted, oil producer in Russia. Six months on, it is on the verge of becoming the sixth largest Russian oil producer with plenty of organic growth opportunities and ready to return to capital and M&A markets. How could this happen in such short period of time? We evaluate the transformation of NNK after the sale of Paiyakhskoye to Rosneft and discuss the current and future strategy of the company: • What drivers were there for the Paiyakhskoye sale to Rosneft? • What did NNK get in return? • What is the value involved and how does NNK’s business look now? • Why do we see the deal as a win-win for both parties involved? • What strategic paths are now open for NNK in 2022 and beyond? Please read our insight for answers to these questions and more.