BP inks deal to sell TNK-BP stake to Rosneft
Russia's President Vladimir Putin speaks with Rosneft CEO Igor Sechin in Putin's residence outside Moscow, 22 October 2012. | AFP PHOTO/RIA-NOVOSTI POOL/ALEXEI NIKOLSKY
On 22 October, British oil major BP said it has signed a deal with state-controlled Russian oil major Rosneft to sell its 50% stake in the TNK-BP joint venture for $17.1bn in cash and 12.84% of Rosneft’s stock. “BP today announced that it has signed heads of terms to sell its 50% share in TNK-BP to Rosneft, the major Russian integrated oil and gas company. Under the heads of terms Rosneft has agreed in principle to buy BP’s share in TNK-BP,” BP in a statement. “BP intends to use $4.8bn of the cash consideration to acquire a further 5.66% stake in Rosneft from the Russian government. BP would acquire the Rosneft shares from the Russian Government at a price of $8 per share,” the statement said.
Russian President Vladimir Putin hailed the deal at a meeting with Rosneft CEO and close ally Igor Sechin. “This is a good signal, a major deal, which is important not only for the energy sector but also for the entire economy,” Putin said. Rosneft is seen as a vehicle for Putin to strengthen state control over the world’s largest oil and gas industry. Later, BP is hoping to secure a deal to explore Russia’s Arctic reserves.
Russia is once again a bit player on the world stage,” Chris Weafer, chief strategist at Sberbank Investment Research, wrote in an e-mailed note to investors on 22 October. He wrote that it seems “as if BP has finally managed to snatch victory from the jaws of defeat, reversing a trend that has dogged the company for many years in many parts of the world. Once the terms of the deal are announced, the speculation will be far from over as attention will then turn to AAR’s position in the company”.
Rosneft is also nearing an accord to buy out the billionaire owners of the other half of TNK-BP. The four tycoons of AAR - Len Blavatnik, Mikhail Fridman, German Khan and Viktor Vekselberg - last week reportedly agreed a non-binding memorandum of understanding to sell their 50% for $28bn in cash to Rosneft, opening the way for the Russian state-owned oil company to negotiate buying the other 50% stake from BP and become the sole owner of TNK-BP. But AAR has not confirmed the deal and may also reportedly be also holding out for an equity stake in Rosneft. NEW EUROPE ON LINE
No comments:
Post a Comment