• 4 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 7 minutes Oil prices forecast
  • 11 minutes Algorithms Taking Over Oil Fields
  • 14 mintues NIGERIAN CRUDE OIL
  • 4 hours UK, Stay in EU, Says Tusk
  • 12 mins Socialists want to exorcise the O&G demon by 2030
  • 13 hours How Is Greenland Dealing With Climate Change?
  • 44 mins Venezuela continues to sink in misery
  • 4 hours Blame Oil Price or EVs for Car Market Crash? Auto Recession Has Started
  • 14 hours German Carmakers Warning: Hard Brexit Would Be "Fatal"
  • 16 hours WSJ: Gun Ownership on Rise in Europe After Terror Attacks, Sexual Assaults
  • 2 hours What will Saudi Arabia say? Booming Qatar-Turkey Trade To Hit $2 bn For 2018
  • 10 hours Maritime Act of 2020 and pending carbon tax effects
  • 2 days Regular Gas dropped to $2.21 per gallon today
  • 2 days BofA Sees Oil at $35-70
  • 2 days "Peace Agreement" Russia vs Japan: Control Over Islands Not Up For Discussion
  • 23 hours Solid-State Batteries
Norway’s Oil Production To Fall To 30-Year Low

Norway’s Oil Production To Fall To 30-Year Low

Crude oil production in Norway…

Creditor Opposes Russian Oil Tycoon’s Plan To Oust Glencore As Shareholder

Russia oil gas

Sberbank, the top Russian state lender and major creditor of the two oil companies of billionaire Mikhail Gutseriyev, is against a plan by the tycoon to merge the firms and replace current shareholder Glencore, Reuters reported on Thursday, citing sources familiar with the idea.

Gutseriyev wants to merge the two firms, RussNeft and Neftisa, and replace Glencore as shareholder in RussNeft. A few years ago, Gutseriyev’s oil assets went through debt restructuring that split them into two.

The billionaire has built his oil assets and wealth with the help of Glencore, which currently holds 33 percent in RussNeft. The Gutseriyev family, on the other hand, owns 47 percent in RussNeft.

However, both RussNeft and Neftisa are heavily indebted to Sberbank and to Russia’s second-largest bank, VTB. The hefty debt is the reason why Sberbank opposes the merger plan, according to Reuters sources.

A part of that plan involves a new investor—possibly Chinese—buying Glencore’s 33-percent stake in RussNeft, the sources said, noting that the idea has not been yet discussed with oil and commodity trading firm.

“Gutseriyev is looking for another partner to replace it [Glencore], telling creditors that the Chinese will be there soon,” said one source familiar with the plan.

A source familiar with Glencore’s position told Reuters that the idea to merge Gutseriyev’s oil assets was not yet “concrete or serious enough”, confirming that such a plan has not been discussed with Glencore.

One source said that a merged and bigger company would be able to borrow more money. However, a deal could be complicated because both banks, Sberbank and VTB, hold stakes in RussNeft and Neftisa as collateral under loans worth billions of U.S. dollars.

“These two companies have different creditors so the merger is technically impossible,” one of the sources told Reuters, adding that no firm deal has been discussed.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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