• 2 hours PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 4 hours Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 6 hours Syrian Rebels Relinquish Control Of Major Gas Field
  • 7 hours Schlumberger Warns Of Moderating Investment In North America
  • 8 hours Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 9 hours Energy Regulators Look To Guard Grid From Cyberattacks
  • 10 hours Mexico Says OPEC Has Not Approached It For Deal Extension
  • 12 hours New Video Game Targets Oil Infrastructure
  • 13 hours Shell Restarts Bonny Light Exports
  • 15 hours Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 21 hours Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 1 day British Utility Companies Brace For Major Reforms
  • 1 day Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 1 day Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 1 day Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 1 day OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 1 day London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 1 day Rosneft Signs $400M Deal With Kurdistan
  • 2 days Kinder Morgan Warns About Trans Mountain Delays
  • 2 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 2 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 2 days Russia, Saudis Team Up To Boost Fracking Tech
  • 2 days Conflicting News Spurs Doubt On Aramco IPO
  • 3 days Exxon Starts Production At New Refinery In Texas
  • 3 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 3 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 3 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 3 days China To Take 5% Of Rosneft’s Output In New Deal
  • 3 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 3 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 3 days VW Fails To Secure Critical Commodity For EVs
  • 4 days Enbridge Pipeline Expansion Finally Approved
  • 4 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 4 days OPEC Oil Deal Compliance Falls To 86%
  • 4 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 4 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 4 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 4 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 5 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 5 days Aramco Says No Plans To Shelve IPO
5 Picks For A Booming Tech Market

5 Picks For A Booming Tech Market

Technological breakthroughs like artificial intelligence…

It’s Final: Rosneft Just Got Bigger

Sechin Putin

Rosneft has closed the acquisition of smaller sector player Bashneft, after Prime Minister Dmitry Medvedev signed a decree for the divestment of the government’s 50.075-percent holding in the target company. The deal is valued at US$5.3 billion.

Bashneft – along with Rosneft, for that matter – has been on a short list of state-owned assets for sale, released by Economy Minister Alexei Ulyukayev earlier this year. Rosneft’s plan to take over its smaller rival, however, initially met with opposition from the Kremlin.

In August, Russian media reported that the sale of the controlling interest in Bashneft had been put on hold, apparently because of a conflict between the two main bidders, Rosneft and Lukoil, although the government’s official position was that the economic environment is unfavorable for the sale of such a large stake and that it would be better to wait for another few months to make Bashneft a more valuable target.

At the time, business daily Kommersant cited a federal government official as saying that the decision for the delay was made by the PM, Dmitriy Medvedev, because the situation around the bidding process had become too tense, creating conflicts between government and presidential officials.

Now, it seems the conflicts have been resolved, probably after President Putin gave the green light for the purchase. According to a source cited by TASS, Bashneft will get a new president from the senior management ranks of its buyer, most likely VP Andrey Shishkin.

According to one Russian economic expert cited by business media FAP News, the Bashneft purchase is part of larger economic processes going on in Russia, aiming to secure state control over “vital” industries, including natural resources, by letting one player monopolize the relevant industry with a view to, supposedly, improve the management of “commodity and financial flows.” flows.

Yet, the Bashneft purchase could make Rosneft itself a more attractive target for potential buyers when the time comes: the Kremlin is planning to put up for sale a minority stake of 20 percent in the country’s biggest state-owned oil company and one of the world’s top producers.

By Irina Slav 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