Support The Moscow Times!

BP in Talks on Acquiring Stake in Rosneft

BP is in talks with Rosneft that may result in the British oil major acquiring at least 12.5 percent of the Russian state oil firm, the Kommersant financial daily reported Thursday, citing sources close to the two companies.

BP's acquisition of Rosneft shares would take place as part of a deal under discussion to sell BP's 50 percent stake in TNK-BP.

Rosneft is looking at buying 25 percent of TNK-BP's shares for $10 billion to $15 billion in cash, with another 25 percent to be acquired with Rosneft shares, Kommersant wrote.

It also reported that Rosneft planned to use treasury shares representing 9.53 percent of its equity, as well as shares acquired in a recent buy-back, worth just over 3 percent of its equity.

Rosneft declined immediate comment on the Kommersant report.

Bankers told Reuters on Wednesday that Rosneft is talking to foreign banks about raising $15 billion in debt financing. A further $5 billion could be raised from Russian banks, one banker also said.

The details published in Kommersant follow a meeting on Tuesday between President Vladimir Putin, Rosneft chief executive Igor Sechin, BP chief executive Robert Dudley and BP chairman Carl-Henric Svanberg.

Sources close to both companies said Wednesday that talks were progressing but played down expectations of an imminent breakthrough.

The co-owners of TNK-BP, a quartet of Soviet-born tycoons represented by the AAR consortium, have also expressed interest in buying 25 percent of the company from BP for $10 billion, but talks have stalled, sources familiar with the matter say.

Under a shareholders agreement, third parties may not strike a deal to buy BP's stake in TNK-BP before a mid-October deadline expires.

Related articles:

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more