WTI Crude

Loading...

Brent Crude

Loading...

Natural Gas

Loading...

Gasoline

Loading...

Heating Oil

Loading...

Rotate device for more commodity prices

The OPEC Deal: Here Are The Details

The OPEC Deal: Here Are The Details

Oil prices continued to surge…

Rosneft Finally Agree Deal to Buy TNK-BP for $54.8 Billion

Its official, OAO Rosneft has agreed to buy TNK-BP for $54.8 billion, in what will be the third biggest oil acquisition ever. The deal will turn the Russian, state owned, Rosneft into the joint largest, publically traded oil producer in the world, matching ExxonMobil, and granting it 40% of Russia’s crude output.

This deal is an important part of President Vladimir Putin’s plan to bring the oil and gas industry back under government control following its privatisation in the 1990’s after the collapse of the Soviet Union.

Rosneft bought out the AAR, the conglomeration of Russian billionaires who owned half of TNK-BP, for $28 billion in cash, whereas BP was offered a cash and shares deal worth a total $26.8 billion. According to Bloomberg, BP will receive $17.1 billion in cash and 12.8 percent of Rosneft, however it has deciede to reinvest $4.8 billion and increase its stake to 19.75 percent, with two seats on the board.

Related Article: Clinton Thinks Azeri Gas is Important and so Should You

Bob Dudley, the Chief Executive Officer of BP, commented that “Rosneft is a company working to become a global leader. BP looks forward to being able to contribute to Rosneft’s success and add value through our participation on the board.”

The only two oil and gas acquisitions that have occurred previously are the $80 billion merger between Exxon and Mobil Corp, and BP’s $56 billion takeover of Amoco Corp, both in 1998.

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News