Rosneft seeks $15bln to buy TNK-BP shares

Published time: September 19, 2012 13:54
Edited time: September 19, 2012 17:54
Rosneft Achinsk oil refinery, one of the biggest Siberian fuel suppliers. (Reuters/Ilya Naymushin)

Russia’s largest oil company Rosneft is seeking about $15 billion in loans from foreign banks to acquire BP’s half of the Russian-British joint venture TNK-BP.

­The state-run company has approached lenders to discuss the terms of the financing, writes Bloomberg, citing two people familiar with the deal that asked not to be identified.

The deal is expected to include a bridging loan and five-year term portions.

Over $5 billion of additional funding may also be provided by Russian banks, one of the people told Bloomberg.

The total amount of debt Rosneft takes on will depend on how much its capital structure can support while maintaining an investment-grade credit rating, writes Bloomberg.
 BP said in June it was thinking of selling its 50% share in TNK- BP, its venture with a consortium of Russian billionaires.

 AAR, representing the interests of BP’s partners in the venture, and Rosneft has said they’re interested in buying shares. "The two sides are currently in the process of the so called “honest negotiations” that would last 90 days according to the conditions of agreement, "writes Investcafe analyst Grigory Birg.

It means that until mid October BP is unable to negotiate a share sale with anyone else.  

Rosneft has been interested in cooperating with BP for a long time, and planned to jointly develop Russia's Arctic shelf.
But that deal was successfully blocked by AAR. With the purchase of BP’s stake Russia’s leading oil producer would be able to strike a future deal with BP without hindrance from AAR.

Comments (1)

Birchwood 24.09.2012 04:28

A thought for consideration: 

Why does Russia and Entities within this Country put themselves at the mercy of manipulated banking, such as the LIBOR Scandal, etc.

Have you considered doing your own bond issue using a 15:1 Gold, Platinum, etc.; tied to production, as a base for collateral (As the price of Gold or whatever used,  increased, the value of their collateral increases), this would be unique for the bond buyer being given this guarantee; plus the profits from the company....... And for this guarantee they would of course receive a lower percentage.......... .. The Bond buyer could actually make money in two direct manners, beside put/call situations.

Has Russia considered establishing a Gold Depsitory Entity, that would interconnect with all facets of Banking around the world, but on "Russia's Platform of Usage".  At this point anything to be done in the future with "creative financing" can be assured to investors while the European Union just gives "paper money".......... I know of a business entity in Hong Kong, that I have worked with who may be able to handle this matter.

As mentioned in the past it seems Russia is dealing with a "glass ceiling" established by others in forcing the usage of foreign banks........... Only Russia can push through the "glass ceiling" and let fresh air circulate (New manners of business structure; originated in Russia, with Integrity).  Until then it seems the foreign banks have structured controls which try to hold Russia down.............. The modern world changes quickly each day with instant communication, "those who hesitate are lost".

+1

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