• 3 minutes China's aggression is changing the nature of sovereignty.
  • 8 minutes Will Variants and Ill-Health Continue to Plague Economic Outlooks?
  • 11 minutes Europe gas market -how it started how its going
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 hours Russia, Ukraine and "2022: The Year Ahead"
  • 2 days Amazing!...see article: "Turkmenistan To Close "Gates Of Hell" Gas Fire" by Irina Slav
  • 13 hours Why is oil priced and traded in U.S. dollars?
  • 9 hours Ukrainian Maidan after 8 years
  • 12 hours Russia oil production live month after month starting from November 2021 - official stats from Rosstat agency
  • 2 days Сryptocurrency predictions
Life After Death For The Coal Industry

Life After Death For The Coal Industry

While the coal industry is…

Oil Market Shows No Signs Of Cooling

Oil Market Shows No Signs Of Cooling

The crude oil market has…

Chinese Scoop Up Stake Russian Rosneft Subsidiary For $1.1Bn

China’s Beijing Gas Group Company has reportedly acquired a 20-percent stake in a subsidiary of Russian Rosneft, giving the Russians help in developing resources in eastern Siberia and access to China’s lucrative gas market.

The price tag on Beijing Gas’ acquisition of a 20-percent stake in Verkhnechonskneftegaz—a Rosneft subsidiary—was said to be US$1.1 billion, according to news agencies.

“The agreements reached with Beijing Gas … is a new milestone of the energy dialog between Russia and China. I am confident that this deal will give a new impetus to the relations between the two countries in the area of energy cooperation, while the competences and capabilities of our partner on the key distribution market will generate significant synergies from our joint operation,” Rosneft CEO Igor Sechin said in a statement.

Rosneft is 70-percent owned by the Russian government, while the biggest minority shareholder is BP, with 19.75 percent.

While Beijing Gas has acquired a 20-percent stake in a Rosneft subsidiary, a bigger deal between Rosneft and the Chinese has been a hot topic of discussion for months. Russia has been considering the sale of a 19.5-percent stake in the parent company, which is the largest listed producer of crude oil in the world, valuing that stake at somewhere near US$10 billion.

The subsidiary deal with Beijing Gas is just a precursor to the bigger deal, which may now materialize soon.

On Monday, 7 November, Russia published a government decree that orders the sale of the 19.5-percent stake in Rosneft, held by state energy firm Rosneftegaz, The decree calls for the sale to be finalized by 5 December 2016, Reuters reported.

The sale comes as Moscow struggles with a budget deficit that risks further inflating, while estimates suggest that the country needs to raise nearly US$16 billion through privatization sales before year’s end.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News