Only five years ago Robert Dudley was barred from entering Russia as BP fought a vicious corporate battle with its local joint-venture partners in the oil major TNK-BP. But times have changed and so has the shape of the Russian oil industry. In what is being seen as a goodwill gesture, the Kremlin has offered BP’s chief executive a seat on the board of Rosneft as Russia’s national oil company moves to complete its takeover of TNK-BP. Continue reading »
While Rosneft is busy raising billions of dollars to pay for the take over of TNK-BP, the Anglo-Russian oil major is carrying on in its own sweet way and planning, among other things, a five-fold increase in production from foreign oil projects. Don’t expect any objections from Rosneft. Russia’s state oil company has its own far greater global ambitions. Continue reading »
For BP and its Soviet-born billionaire partners in TNK-BP, Rosneft’s mega deal to buy 100 per cent of the Russian oil venture is an enormous $55bn payday on an investment that has already paid out $38bn in dividends.
But minority investors in the main holding of TNK-BP risk being caught stranded – and indeed squashed – in the biggest deal in Russian corporate history, a state of affairs that investors say speaks volumes about the sorry state of Russia’s investment climate. Continue reading »
Russia’s government did its best on Wednesday to affirm its continued commitment to privatisation plans, despite carrying out what is in effect the largest nationalisation in post-Soviet history this week.
Andrei Belousov, economy minister, insisted that the purchase of 100 per cent of oil company TNK-BP by state company Rosneft did not mean the government was rethinking its commitment to rolling back state ownership of the economy. Continue reading »
BP confirms it is in advanced discussions with Rosneft regarding the sale of its 50% interest in TNK-BP. No agreement has yet been reached. A further announcement will be made if and when an agreement is reached.
BP’s board has approved a $27bn deal with the Russian state oil company Rosneft to sell its stake in TNK-BP which should seal the UK energy group’s future in Russia for decades to come.
The deal means BP will swap its troublesome partnership with a group of Russian oligarchs for an alliance with arguably Russia’s most powerful company – the Kremlin-backed national energy champion. Continue reading »
Rosneft‘s proposed $50bn-plus takeover of TNK-BP, buying out BP and its Russian oligarch partners, will turn the state-run group into one of the world’s largest oil producers controlling nearly half Russia’s output.
For those who believe that bigger is better, including Rosneft chief executive Igor Sechin and his political master president Vladimir Putin, this is a triumph. For BP and its partners, the end of a troubled, if profitable, relationship will come as a relief.
But for Russia as a whole – and for the global oil industry – Rosneft’s coup is, at best, a mixed blessing. Continue reading »
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