Rosneft to ink binding deal to buy 50% in TNK-BP from AAR in Dec
Khabarovsk (Platts)--30Nov2012/723 am EST/1223 GMT
Russia's Rosneft expects to sign in December a legally binding agreement
with Russian group Alfa-Access-Renova (AAR) to buy its 50% stake in the
TNK-BP oil venture, Rosneft's CEO Igor Sechin said Friday.
"We are finalizing preparation of a binding agreement [with AAR] which
we will sign in December," he told reporters.
"We have agreed on almost all fundamental issues. There are one or two
points outstanding, which I think will be resolved in the next few days," he
Rosneft announced in October plans to buy all of TNK-BP, Russia's third
biggest oil producer, from its shareholders BP and AAR.
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Last week, it signed a definitive and binding agreement with BP to
acquire its 50% stake in TNK-BP in exchange for $17.1 billion in cash and a
12.84% stake in Rosneft from shares currently held in treasury.
The deal also provides for BP to use $4.8 billion of the cash from
Rosneft to buy an additional 5.66% stake in Rosneft from the Russian
government through Rosneftegaz, bringing the oil major's stake in Rosneft to
Under a framework agreement with AAR inked in October, Rosneft is to buy
the group's 50% of TNK-BP for $28 billion.
Revealing few new details on the planned reorganization of the business,
following the acquisition, Sechin said Rosneft expects to maintain and develop
brands under which TNK-BP's gasoline stations now work.
TNK-BP controls around 1,500 retail gasoline stations under brands of BP
and TNK in central Russia and Ukraine.
"We will maintain and develop the brands," he said.
Sechin was speaking after an extraordinary shareholders meeting, which
elected Sechin to the board of directors. Sechin replaced Rosneft's deputy
CEO Eduard Khudainatov, who headed the company until May.
Separately, Sechin said that planned liberalization of access to
Russia's offshore reserves for private companies could mean the government
would need to pay compensation to Rosneft.
"When Rosneft held an IPO in London in 2006, the government pledged
not to create conditions that would negatively affect Rosneft's
shareholders," Sechin said.
"If such decisions [as providing offshore access to private companies]
are made, [the government] is to take into account compensation that the
shareholders would need," he added.
Russia's legislation, adopted in 2008, effectively grants the right to
develop the country's offshore fields to only two state-run companies
-- Gazprom and Rosneft.
The government is currently considering a change to the law to grant
access to carry out exploration offshore Russia to a greater number of
companies, including foreign investors, to accelerate development of offshore
Lukoil CEO Vagit Alekperov Thursday did not rule out that the decision
could be taken in December.
Through 2011 and 2012, Rosneft has invited a number of international
partners to help it explore and develop offshore reserves, including US
ExxonMobil, Italy's Eni and Norway's Statoil.
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