• 6 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 5 hours WTI @ $75.75, headed for $64 - 67
  • 9 hours Saudi-Kuwaiti Talks on Shared Oil Stall Over Chevron
  • 30 mins The Dirt on Clean Electric Cars
  • 3 hours Uber IPO Proposals Value Company at $120 Billion
  • 6 mins Trump vs. MbS
  • 14 hours OPEC's No. 2 Producer Wants to Know How Buyers Use Its Oil
  • 1 hour Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 10 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 3 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 7 hours COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 13 hours China Thirsty for Canadian Crude
  • 6 hours Nopec Sherman act legislation
  • 9 hours EU to Splash Billions on Battery Factories
Will The U.S.-Saudi Spat Upend Oil Markets?

Will The U.S.-Saudi Spat Upend Oil Markets?

Saudi Arabia appeared to threaten…

Russia To Resume Gas Imports From Turkmenistan

Russia To Resume Gas Imports From Turkmenistan

According to Aleksei Miller, Gazprom’s…

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:


x

Join the discussion | Back to homepage

Leave a comment

Leave a comment

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