The BP plc (ADR)(NYSE:BP) and
the AAR, or the Russian billionaires who jointly owned the company, are going
to sell TNK-BP off to OAO Rostneft. This deal, if it goes through, is sure to
make the oil production of Russia even stronger than it was before. OAO, the
state-run oil mill will be able to produce a lot more, doubling the size of the
company.
The AAR group wants to sell
their end of the 50 percent ownership to Rosneft, and for that, the
conglomeration has been demanding for about $28 billion. BP wants to sell some
of its stakes in TNK BP, but not just for cash. The company wants a mixture of
cash, as well as company shares from the state-run oil company. This news came
from an official who wished to remain anonymous before the deal actually fell
through between the three groups. All three of these groups, which is to say,
Rosneft, AAR and BP refused to comment upon the information leaks.
Vladimir Putin, the
president of Russia has managed to strengthen his hold over the energy sector
by controlling Rosneft and its dealings. Igor Sechin, who is the Chief
Executive officer for Rosneft, has been a Putin supporter for about twenty
years now. He is due to meet Bob Dudley, the CEO of BP in London tomorrow. If
this deal falls through, then Rosneft shall stand to produce about 4.5 million
barrels of the oil and the gas, which will make the company so successful. This
amount of production can put Rosneft up there with Exxon Mobil Corporation.
One would say that BP is
very happy to have the TNK BP selling right now, which effectively ends their
relationship with the billionaires, which has always been tumultuous. Their
fights have often become quite open and public. BP is a London based explorer,
and after the relationship between AAR and them failed in June, they were eager
to sell of their part of the joint venture.
According to Arkady Dvorkovich , the Russian Deputy Prime Minister,
an agreement of intent had been drawn up, which has been signed by two parties:
AAR and Rosneft.
No comments:
Post a Comment