• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 3 hours China has invested btw $30 - $40 Billon in Canadian Oil Sands. Trump should put 10% tariffs on all Chinese oil exported into or thru U.S. in which Chinese companies have invested .
  • 28 mins Tit For Tat: China Strikes Back In Trade Dispute With U.S. With New Tariffs
  • 14 hours Iran Is Winning Big In The Middle East
  • 2 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 18 mins It's Not the Job of the Government to Dictate Where Businesses Should Go
  • 11 hours Strong, the Strongest: Audi To Join Mercedes, BMW Development Alliance
  • 14 hours IS ANOTHER MIDDLE EAST WAR REQUIRED TO BOLSTER THE OIL PRICE
  • 1 day Trump cancels Denmark visit amid spat over sale of Greenland
  • 15 hours Not The Onion: Vivienne Westwood Says Greta Thunberg Should Run the World
  • 23 hours OPEC will consider all options. What options do they have ?
  • 12 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 7 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 14 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
Washington Threatens Greece In Tanker Seizure Saga

Washington Threatens Greece In Tanker Seizure Saga

Washington has asked Greece not…

Russneft Owners To Sell 15% Of Company

Russia Offshore

The Gutseriev family, owners of 75 percent in Russian oil company Russneft (not to be confused with Rosneft), a midsized player in the field, is selling 20 percent of their holding in the company. The stake represents 15 percent of Russneft’s capital and will be floated on the Moscow stock exchange by the end of the year.

The initial public offering is being arranged by Russian banks VTB and Sberbank, and brokers Aton and BCS. The pricing range of the placement will be announced at the end of this week, and the final price will become public two weeks from now.

Russneft’s head first spoke about a possible flotation of part of his stake in June, when he said he might offer 10 percent of his family’s holding in the company on the Moscow stock exchange.

The company, in which Swiss-based commodity trading and mining giant Glencore holds 25 percent, earlier this month announced it planned to raise its 2016 capital expenditure by 36 percent to US$260 million (17.1 bln rubles). In terms of production, the company said it aimed to increase its annual crude oil output to 73.3 million barrels by 2019, up from 51 million barrels now.

Glencore bought into Russneft in the early 2000s, when company founder Mikhail Gutseriev, the 16th richest man in Russia, according to Forbes, had money problems. Gutseriev was kicked out of Slavneft, and Glencore helped him fund the start of Russneft in exchange for a 46-percent stake.

Between 2002 and 2010, The Swiss-based conglomerate poured some US$2 billion into the company, which at the time ranked among the top 10 oil companies in Russia. Glencore, which itself went public five years ago, had stakes in a number of Russneft subsidiaries and the right to sell the oil it produced.

However, as the FT reported this July, Gutseriev decided to do some debt restructuring, swapping some US$1 billion debt Russneft owed another of his companies for shares in the oil company. The move saw Glencore’s interest diluted to 25 percent.

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
Download on the App Store Get it on Google Play