Rosneft Oil Company OJSCGrey Market
Yesterday, 2:08 PM
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) and Qatar’s sovereign wealth fund have bought a 19.5% stake in Russian state-controlled oil producer Rosneft (OTC:RNFTF), according to a Kremlin spokesperson.
- The Russian government reportedly will receive €10.5B ($11.3B) from the deal and will prepare a scheme for foreign currency conversion to avoid financial market volatility.
- Russia still holds a controlling stake in Rosneft, the world’s largest listed oil producer.
Tue, Dec. 6, 2:57 PM
- BP has the highest exposure in the countries that have said they will cut oil production, Rystad Energy says, with the likely participation of Russia, where BP holds a 20% stake in Rosneft (OTC:RNFTF), puts it ahead of rivals Total (NYSE:TOT), Shell (RDS.A, RDS.B), ExxonMobil (NYSE:XOM), Eni (NYSE:E) and Chevron (NYSE:CVX).
- “If Russia should deliver on their production cut, we believe that the fields operated by Rosneft will be affected,” Rystad's Espen Erlingsen says. "Also in Iraq, the government will need to reduce production from the large Basra fields. Here the BP-operated Rumaila is a likely candidate for cuts.”
- BP has ~1.6M bbl/day of production in the affected countries, with Russia accounting for roughly half the total, according to the Rystad analysis; Total has ~700K bbl/day of output in the countries, Shell has 586K bbl/day, followed by XOM with 563K, Eni with 497K, and CVX 194K.
Tue, Nov. 29, 10:40 AM
- Russia's former Economy Minister Ulyukayev privately argued to colleagues in government that the state should give up control over Rosneft (OTC:RNFTF), reducing its stake to below 50%, before he was arrested two weeks ago, Reuters reports.
- Ulyukayev allegedly tried to extort a $2M bribe from Rosneft, but Russia watchers note that any plan to reduce state control of Rosneft would have weakened the position of the company's boss and Putin confidant Igor Sechin.
- Meanwhile, a Kremlin economic aide says Rosneft should submit privatization plans by Dec. 1, keeping the government on track to receive funds by year-end from the sale of 19.5% of state energy holding Rosneftegaz's 69.5% stake in Rosneft.
Tue, Nov. 15, 8:21 AM
- Russian Economy Minister Ulyukaev has been detained and accused of bribery by law enforcement agencies, in the highest profile arrest of a sitting government official since Pres. Putin came to power in 2000.
- Ulyukaev is accused of taking a $2M bribe from Rosneft (OTC:RNFTF) in a sting set by the FSB, the KGB's main successor agency, and threatening "to use his powers to put obstacles to the company's activities."
- The minister is a relatively liberal figure who has spoken against an increasing government presence in the Russian economy; he has opposed Rosneft's bidding for Bashneft, saying it was wrong for a state-owned company to take part in Russia's privatization drive.
- ETFs: RSX, RUSL, RUSS, ERUS, RSXJ, RBL
Tue, Nov. 15, 3:54 AM
- Looking to "normalize U.S.-Russia ties," President-elect Donald Trump and Vladimir Putin spoke by telephone on Monday and agreed to work towards "constructive cooperation" and "combine efforts to tackle international terrorism."
- Meanwhile, Russia's economy minister has been detained over an alleged bribe relating to a mega domestic deal between two of the country's biggest oil companies - Rosneft (OTC:RNFTF) and Bashneft.
- ETFs: RSX, RUSL, RUSS, ERUS, RSXJ, RBL
Fri, Nov. 11, 10:57 AM
- Rosneft (OTC:RNFTF) says it generated $4.1B in free cash flow during the first nine months of the year, strengthening its position for a continuing acquisition drive despite a worse than expected 77% Y/Y decline in Q3 net profit to 26B rubles ($401M) as sales fell 4% Y/Y to 1.22T rubles.
- Rosneft also says it will need to redeem debt of $3.8B in Q4 and $12.9B in 2017 after net debt rose by 11.5% during Q3 from the previous quarter to $26.1B.
- Earlier this week, Rosneft said oil production rose by 1.3% Y/Y to 4.15M bbl/day.
Fri, Nov. 11, 8:53 AM
Tue, Nov. 8, 11:44 AM
- Russia needs a new profit-based tax regime for the country's oil industry to support the use of modern, high-cost technologies and maintain oil production, says a top executive at oil producer Lukoil (OTC:LUKOF, OTCPK:LUKOY).
- The current tax is based on production and exports, and companies long have lobbied for profit-based taxation, saying it would spur production while better reflecting exploration costs and risks.
- Russia has been pumping oil at record-high levels above 11M bbl/day despite a preliminary agreement to freeze output jointly with other leading producers to prop up weak prices.
- The exec also says Lukoil is not interested in buying shares in its larger peer Rosneft (OTC:RNFTF).
Mon, Nov. 7, 12:59 PM
- Russia's government publishes a decree ordering the sale of a 19.5% stake in state-controlled Rosneft (OTC:RNFTF) in time for the proceeds to be received by the end of the year.
- In a bid to trim its expanding budget deficit, the government so far has raised 382B rubles from sales of shares in diamond producer Alrosa and oil company Bashneft, and hopes a stake sale in Rosneft, which bought a 50.1% stake in Bashneft last month, will bring the total up to 1T rubles ($15.7B).
- The economy minister expects the proceeds from the Rosneft sale to come in at a minimum of 748B rubles, which would then be adjusted by a coefficient of 0.95; Reuters calculates that the would translate into a minimum of 711B rubles in budget proceeds.
Wed, Nov. 2, 10:38 AM
- Russia’s government is expected this week to proceed with the sale of a 19.5% stake in state-controlled Rosneft (OTC:RNFTF) for an expected $11B, a move that comes shortly after the world’s largest quoted crude oil producer bought state-controlled Bashneft for $5.2B, but Financial Times says the two deals billed as Russia’s biggest privatizations in a decade look more like insider deals.
- Russian Pres. Putin explained the Bashneft deal by saying Rosneft offered the best price, and Rosneft was not really a state-owned company since it was not directly owned by the government; the state’s 69.5% stake is held by the Rosneftegaz holding company - which is chaired by Rosneft chairman and Putin crony Igor Sechin - and leaks suggest that Rosneft plans to buy the stake from Rosneftegaz itself.
- Ildar Davletshin at Renaissance Capital says there could be merits in combining Bashneft and Rosneft “with scope for synergies in logistics and administrative costs... [but] “we generally think that a private buyer would have created more value in the longer term."
- ETFs: RSX, RUSL, RUSS, ERUS, RBL
Fri, Oct. 28, 10:46 AM
- Rosneft (OTC:RNFTF) says it will seek approval from Russia's government to buy up to 100% of Bashneft after acquiring a controlling stake earlier this month.
- State-controlled Rosneft paid 330B rubles ($5.2B) for a 50.1% stake in Bashneft, in a process that has caused much discussion in the government about whether one state firm may buy another; the region of Bashkortostan owns ~25% of Bashneft, which produces ~400K bbl/day of crude oil, 4% of Russia's output.
- Yesterday, Rosneft said it had asked Lukoil (OTC:LUKOF, OTCPK:LUKOY) to cancel crude oil purchasing contracts with Bashneft.
Thu, Oct. 20, 10:58 AM
- The deal by Rosneft (OTC:RNFTF) and others to buy India's Essar Oil for $12.9B does not run afoul of U.S. sanctions on Russia, the State Department says.
- Under the deal, Rosneft is teaming with a consortium of Russian investment group United Capital Partners and global oil trader Trafigura to buy Essar.
- The transaction was carefully structured to reduce the risk of sanctions, as Rosneft will control only 49% of Essar with Trafigura and UCP jointly holding another 49%.
Sun, Oct. 16, 6:28 AM
- India and Russia signed billions of dollars of defense and energy deals on Saturday.
- Under the biggest agreement, a group led by Rosneft (OTC:RNFTF) said it would pay $12.9B for a controlling stake in both India's Essar Oil and the port facilities that it owns.
- The countries also announced plans for a joint venture to build helicopters in India, while New Delhi said it would also buy surface-to-air missile systems and stealth frigates from Moscow.
- ETFs: RSX, EPI, RUSL, INDY, RUSS, SCIF, INDA, INDL, ERUS, PIN, RSXJ, INP, INXX, IIF, INCO, RBL, SCIN, SMIN
Fri, Oct. 14, 7:54 AM
- A group led by Russia's Rosneft (OTC:RNFTF) reportedly is acquiring India's Essar Oil in a $12B-$13B deal including debt, giving Russia a foothold in one of the world’s fastest growing oil-consuming nations
- Rosneft will acquire a 49% stake in Essar, while European trader Trafigura and Russian investment fund UCP will split the remainder of Essar's equity, according to reports.
- Essar Oil operates a 400K bbl/day oil refinery in Vadinar on India's west coast and sells fuels through its 2,470 filling stations in India.
Thu, Oct. 13, 3:27 PM
- Russian Pres. Putin is not ready for a full-scale privatization drive despite the sale of the government's stake in the Bashneft oil firm to Rosneft (OTC:RNFTF), the country's largest producer, analyst Christopher Granville tells CNBC.
- The Trusted Sources managing director thinks Putin does not want to privatize outright majority controlling stakes in large companies to the private sector, and that "he meant small minority stakes which are interesting to the equity market."
- The government's strategy is "good for macro, not so good for structural reform, private ownership and competition," Granville says.
- Meanwhile, Rosneft boss Igor Sechin says he is confident that the sale of a minority stake in the company will happen by the end of this year.
Wed, Oct. 12, 5:04 AM
- Oil prices are holding the $50 level in early trading, despite uncertainty over the willingness of Russia to cut down on production levels.
- President Vladimir Putin is on record supporting a coordinated cut with OPEC, but it's unclear to some market watchers if Rosneft (OTC:RNFTF) will cooperate.
- Brent crude is up 0.67% to $52.76, while WTI crude futures are 0.41% higher at $51.00.