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Rosneft eyes BP stake in Russian subsidiary
Rosneft is attempting to take a slice in one of UK oil major BP’s Russian subsidiaries, it was announced on Tuesday.
The energy giant has notified BP of its interest in buying a 50 per cent stake in its Russian subsidiary TNK-BP, the Russian company said in a statement.
BP announced in June that it had been approached by potential bidders for its share in TNK-BP and intended to pursue a sale of its 50 per cent stake in the firm.
Both parties have now entered negotiations and signed a non-disclosure agreement. However, BP is still under its period of good faith negotiations with Russian Alfa Access-Renova (AAR), which has an equal share in TNK-BP, and has announced that it will give priority to its Russian partner as a potential buyer.
BP’s stake in TNK-BP has been estimated to be worth between USD 25-30bn, according to analysts; AAR boss Mikhail Fridman described the sum as “unrealistic”.
State-owned oil and gas company, Rosneft has seven major refineries and is engaged in exploration and production projects in Western Siberia, Southern and Central Russia, Timan-Pechora, eastern Siberia and the Far East. Its total proved hydrocarbon reserves are estimated at 22.8 billion barrels of oil equivalent. In 2010, crude oil production totaled 875 million barrels and refinery throughput reached 369 million barrels. Its annual natural and associated gas output currently sits at approximately 12 billion cubic meters.
The company on Monday signed with Italian energy company Eni a deal to finance oil and gas exploration at three offshore blocks located in the Barents Sea and the Black Sea.