MOSCOW, October 23 (RIA Novosti)
- Rosneft to Buy 100% of TNK-BP
- Rosneft Mulls Western Banks as Funding Source for TNK-BP Deal
- BP Signs Landmark Deal to Sell TNK-BP Stake to Rosneft
- BP Confirms 'Advanced Talks' With Rosneft on TNK-BP Stake
- Rosneft Offers BP $28 Bln for TNK-BP Stake – FT
- Fitch May Cut Rosneft Rating Over 50% TNK-BP Stake Buy
Russian state-controlled oil giant Rosneft will produce 5 percent of global oil after acquiring all of TNK-BP, Rosneft CEO Igor Sechin said on Tuesday.
“Oil production will rise from 2.4 million barrels per day to 4.1 million bpd and overall output (of hydrocarbons) will grow to 4.6 million barrels (of oil equivalent) per day from the current 2.6 million bpd,” Sechin said in a conference call with investors.
Rosneft announced landmark deals on Monday to buy 100 percent of TNK-BP from British oil major BP and the AAR consortium of Russian billionaire shareholders.
Under the terms of the deals, BP will receive $17.1 billion in cash for its 50 percent stake plus stock representing 12.84 percent of Rosneft’s shares while the AAR consortium of Soviet-born billionaire shareholders will sell its 50 percent stake in the joint venture “for cash consideration of $28 billion.”
BP also intends to use $4.8 billion of the cash consideration to acquire a further 5.66 percent stake in Rosneft from the Russian government. BP would acquire the Rosneft shares from the Russian government at a price of $8 per share (representing a premium of 12 per cent to the Rosneft share closing price on the bid date: 18 October 2012), the British oil giant said in a statement.
Therefore, after the proposed transaction is completed, BP will acquire a total 18.5 percent stake in Rosneft and net $12.3 billion in cash.
“This would result in BP holding 19.75 percent of Rosneft stock, when aggregated with BP’s 1.25 percent current holding in Rosneft.”
Add to blog
You may place this material on your blog by copying the link.
Image Galleries: Yury Gagarin: A down-to-earth person
Infographics: The Linguistic Diversity of the Planet
Ukraine has not preserved its 1991 borders. The signing of the Geneva memorandum on April 17 reaffirmed the willingness of Russia, the United States and EU countries to reach a compromise. While the sides continue to trade tough talk and symbolic sanctions, the Kremlin and the White House are also holding a parallel dialogue on the coordinated geopolitical revision of Eastern Europe.