arabtoday
Last Updated : GMT 23:11:07
Arab Today, arab today
Arab Today, arab today

Rosneft denies approach to BP over TNK-BP

Arab Today, arab today

Arab Today, arab today Rosneft denies approach to BP over TNK-BP

Monaco - Arabstoday

Russia’s largest state-controlled oil company Rosneft denied having ever given consideration to buying out BP’s 50 percent stake in its TNK-BP joint venture in Russia, Rosneft President Igor Sechin said on Friday. “We never thought about that. This is a new situation developing on the market. It seems there might be a reaction to this statement on the market,” Sechin said, adding the news should be studied first before a final decision was made. “It [the market] should at first formulate definite proposals. This is a very unforgiving business to make predictions, when the situation has not developed in full. We should wait for a while,” Sechin said. BP announced on Friday in a statement on its website that it had received unsolicited interest regarding the potential acquisition of its shareholding in TNK-BP, and that it was looking to move forward in response. “In light of these unsolicited approaches and consistent with its commitment to maximizing shareholder value, and its obligations under the Shareholder Agreement, BP has notified Alfa Access Renova of its intention to pursue a potential sale.” The announcement brings one step closer the breakup of the 50-50 partnership between BP and Alfa Access Renova, which saw TNK-BP formed in 2003 BP’s Russian oil and gas assets and the oil and gas assets of Alfa Access Renova. Vyacheslav Bunkov, head of oil and gas at Aton investment group, said the BP stake would be worth as much as the price was being floated in early 2011, when BP considered buying out AAR. “I think $30-35 billion price is what we are looking at, same as it was when buyout talk has circulated earlier,\" he said. The partnership has been beset by strategic management issues in recent years, with former TNK-BP CEO Robert Dudley forced out of Russia in 2007, before subsequently becoming CEO of BP.  The aftermath of the dispute, which involved claims that BP was running TNK-BP as a subsidiary and that it was refusing to allow TNK-BP to compete in international markets, was a revised shareholder agreement, flagging a commitment to an IPO over the longer term, and greater international presence for TNK-BP. In January 2011 a proposed joint venture between BP and Rosneft to develop Russian Arctic energy interests, and a proposed share swap between BP and Rosneft, was ultimately abandoned after AAR took BP through arbitration claiming that the TNK-BP shareholder agreement gave TNK-BP the first right of refusal on any proposed BP projects in Russia - a position, which was ultimately upheld. The BP announcement comes after TNK-BP CEO Mikhail Fridman announced his resignation earlier this week, with AAR CEO Stan Polovets saying that the time had come for a review of the 50-50 ownership structure of TNK-BP.  In addition to its Russian assets TNK-BP has production assets in Ukraine, Brazil, Venezuela and Vietnam. Russian experts polled by RIA Novosti said the price of BP\'s stake was likely to be the main stumbling block during possible talks between the two shareholders. \"It is known that AAR and BP are not satisfied with the size of their stakes and [the disputes] have retarded the company\'s operational activities. BP values its stake highly and will not sell it at a cheap price,\" Troika Dialog investment company analyst Valery Nesterov said. \"The price question has been always one the most important,\" VTB Capital analyst Alexander Kirevnin said. \"TNK-BP generates considerable income for BP. If BP sells this asset, this step could considerably worsen the company\'s operational results and it would be very difficult to reinvest the funds [gained from the stake sale] in other projects with comparable yield,\" he added.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today rosneft denies approach to bp over tnkbp Arab Today, arab today rosneft denies approach to bp over tnkbp

 



Arab Today, arab today
Arab Today, arab today Adidas Originals ‘reinterpreted’

GMT 14:52 2016 Thursday ,01 December

Adidas Originals ‘reinterpreted’
Arab Today, arab today Holiday magic is everywhere

GMT 13:04 2016 Saturday ,03 December

Holiday magic is everywhere
Arab Today, arab today Paris's matchbox apartments

GMT 10:37 2016 Saturday ,24 September

Paris's matchbox apartments
Arab Today, arab today As nearly 20,000 children flee Aleppo

GMT 07:50 2016 Saturday ,03 December

As nearly 20,000 children flee Aleppo
Arab Today, arab today What next after landmark

GMT 09:01 2016 Saturday ,03 December

What next after landmark
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Dino-killing crater shows clues

GMT 14:43 2016 Thursday ,24 November

Dino-killing crater shows clues
Arab Today, arab today For Yazidi women left behind

GMT 08:00 2016 Saturday ,03 December

For Yazidi women left behind
Arab Today, arab today Green groups pressure Spain

GMT 13:01 2016 Thursday ,01 December

Green groups pressure Spain
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Hyundai allows Saudi journalists

GMT 15:14 2016 Thursday ,01 December

Hyundai allows Saudi journalists
Arab Today, arab today Latest Infiniti QX to compete

GMT 13:16 2016 Saturday ,26 November

Latest Infiniti QX to compete
Arab Today, arab today Austria's race against time

GMT 11:44 2016 Thursday ,01 December

Austria's race against time
Arab Today, arab today Car manufacturers to power Europe

GMT 13:01 2016 Tuesday ,29 November

Car manufacturers to power Europe

GMT 12:45 2016 Tuesday ,29 November

To find German funny bone

GMT 13:52 2016 Monday ,28 November

Punk memorabilia torched

GMT 04:15 2016 Thursday ,30 June

World's largest uncut diamond fails

GMT 12:39 2016 Friday ,25 November

Arctic 9-12C above normal

GMT 15:59 2015 Wednesday ,27 May

Seoul elevates gardening to high art

GMT 12:39 2016 Saturday ,26 November

Skin patch could help kids

GMT 13:19 2016 Monday ,21 November

New nationalism stoking fears

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 09:53 2016 Sunday ,15 May

OMEGA official timekeepers
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Powered and Developed by FilmMatters

Copyright © 2016 Arabtoday

Developed by FilmMatters

© 2016 Arabtoday

arabtoday arabtoday arabtoday
arabtoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabtoday, Arabtoday, Arabtoday