• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 18 mins Would bashing China solve all the problems of the United States
  • 2 hours Model 3 cheaper to buy than BMW 3 series.
  • 1 hour Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 8 mins Pompeo's Hong Kong
  • 1 hour Thugs in Trumpistan
  • 2 hours China To Boost Oil & Gas Exploration, As EU Prepares To Commit Suicide
  • 23 hours COVID 19 May Be Less Deadly Than Flu Study Finds
  • 2 hours China’s Oil Thirst Draws an Armada of Tankers
  • 12 hours Income report showing potential future spending and economic growth
  • 5 hours Coronavirus hype biggest political hoax in history
  • 13 hours US-China tech competition accelerates: on Friday 05/15 new sanctions on Huawei, on Monday 05/18 Samsung chief visits China
  • 2 days China to Impose Dictatorship on Hong Kong
  • 14 hours The CDC confirms remarkably low coronavirus death rate. Where is the media?
Have Oil Traders Abandoned Fundamentals?

Have Oil Traders Abandoned Fundamentals?

Oil prices are back at…

The World Has Too Many Oil Refineries

The World Has Too Many Oil Refineries

Several years of heightened investment…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

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