Add to favorite
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS

Paper Review: Russian Rosneft's Rally
October 18, 2012 23:54

The Daily Telegraph calls the tentative agreement “an historic deal” and the Wall Street Journal “a game changer for the Russian oil industry”.

The deal would also mark the largest ‘realignment of Russia’s oil industry’ since the collapse of Yukos, says the Financial Times.

The FT also says that the second biggest shareholder, AAR, gave up on its own ambition take over TNK-BP because its owners saw that BP had already taken the decision.”

Industry experts cited by Reuters were concerned that too much debt raised by Rosneft to buy out BP’s (and maybe AAR’s) stake would impact the company’s credit rating and make it more difficult to pay it off in the future.

While the Wall Street Journal’s analyst predicts more benefits to Rosneft rather than to BP, Forbes is certain BP will get over the loss – first, it is desperate for cash to settle the oil disaster in the Gulf of Mexico, second, it will now be “better positioned for long-term growth from a solid core of assets” and third, the sale does not mean BP will be completely out of Russia.

Apart from giving a detailed overview of the shaky relations between investors within TNK-BP, Reuters reminds that the proposed deal could pave the way for strategic cooperation between BP and Rosneft that the two giants pursued in the past but that was blocked by AAR earlier.

With Rosneft now taking the lead, says the FT, the road for a joint venture between the two is open – leading to the same level of collaboration that “ExxonMobil, Statoil and Eni have forged in the last year.”

Bloomberg looks at the stocks behaviour ahead of what it calls “the industry’s second-biggest deal ever” and quotes the Russian Energy Minister as saying that the acquisition will not create a monopoly in the market because there will still be enough competition.

If you need more info on the story, feel free to contact Russia-IC for translation services.

Author: Mikhail Vesely

Tags: Rosneft BP TNK-BP Russian oil  

Next Previous

You might also find interesting:

2014 Sochi Olympics Suprises The State of Maria Komissarova Remains the Same Factory For Bottling Water May Appear On the Shore Of the Baikal Lake Taxes, Benefits, Rewards: New Laws and Programs for Business Come into Force in 2021 Football: Gameweek 28

Comment on our site

RSS   twitter      submit

Russian Fortresses  Free Wi-Fi  Exhibitions in Moscow  Nikolay Ge  Murmansk Region  Russian tourism  fashion designer  Yamal  Petersburg Planetarium  St. Petersburg Parks   Fabio Capello  Moscow  Archaeology  incident  Russian places of interest  The Year of Literature  animation  Russian exhibitions  Elbrus  Russian directors  Krasnodar Trolleybus  health  Altai  Naked Heart Foundation  Russian Cinema  Solovki  Mercedes-Benz Fashion Week Russia  Russian science  Russian business  Iran  Russian scientists  Anatoly Papanov  Street Art  Paleopark  children  Tourism and hospitality Forum   Sts Peter and Paul Cathedral  Architecture Museum  Russian parks  Valeriya Gai Germanika  Moscow transport  Russian hockey  Cancer  Vandalism  Russian economy  Russian travelers  Rurik Dynasty  Rusian business  St. Petersburg  Irkutsk 

Travel Blogs
Top Traveling Sites