• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 6 hours Dutch Populists Shock the EU with Election Victory
  • 14 hours One Last Warning For The U.S. Shale Patch
  • 2 hours Venezuela Says Russian Troops Land to Service Military Equipment
  • 9 hours 3 Pipes: EPIC 900K, CACTUS II 670K, GREY OAKS 800K
  • 3 hours Read: OPEC THREATENED TO KILL US SHALE
  • 42 mins Multi-well Pad Drilling Cost Question
  • 23 hours Climate change's fingerprints are on U.S. Midwest floods
  • 11 hours U.S.-China Trade War Poses Biggest Risk To Global Stability
  • 1 day Oil Slips Further From 2019 Highs On Trade Worries
  • 1 day The Political Debacle: Brexit delayed
  • 20 hours Modular Nuclear Reactors
  • 11 hours European Parliament demands Nord-Stream-ii pipeline to be Stopped
Global Intelligence Report – 20th March 2019

Global Intelligence Report – 20th March 2019

The power balance in conflict…

India Stops Taking In Venezuelan Oil

India Stops Taking In Venezuelan Oil

A senior U.S. government official…

Russia Dismisses Reports It Could Buy Back Rosneft Stake From Qatar

Rosneft HQ

The Kremlin dismissed on Wednesday speculation that Russia could buy back part of the 19.5-percent stake in its oil giant Rosneft that it had sold to Qatar Investment Authority and Glencore, with Kremlin spokesman Dmitry Peskov telling reporters that suggestions about a buy-back were “not possible and incorrect”.

“Such speculative arguments are impractical and irrelevant,” Russia’s TASS news agency quoted Peskov as saying in answer to a question if Russia could buy back Rosneft shares from Qatar in view of the strained relations between several Arab states and Qatar.

Earlier today, The Wall Street Journal reported--citing people familiar with the issue--that Qatar and Russia had agreed that Moscow could buy part of the stake from Qatar, and this could happen in the next 10 years.

Earlier this year, Swiss-based commodity trader and miner Glencore and Qatar’s sovereign wealth fund, Qatar Investment Authority, announced the completion of a deal for the acquisition of 19.5 percent in Rosneft. The price tag on the stake was around US$11.3 billion (692 billion rubles), of which Glencore agreed to contribute US$324 million. The remainder was forked over by the Qatar Investment Authority, as well as non-recourse bank financing.

Related: OPEC Cuts Send Russia’s Oil Heartland Into Decline

According to The Journal’s sources with knowledge of the deal, Russia’s sale of the stake acted as an emergency loan to help Russia shore up budget gaps—meaning that the sale was always meant to be undone at some point.

Both Glencore and the Qatar Investment Authority told The Journal that the deal’s details did not include a right for Russia to buy back Rosneft shares from the Glencore-QIA consortium they had formed for the deal.

According to the people with knowledge of the matter, Qatar wanted to temporarily hold Rosneft shares and profit from selling them back to Russia later, expecting oil prices to increase and Rosneft’s shares to become more expensive, the Journal reported.

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