Oil Industry Russia Rosneft Closes Deal with BP – Russian Oil Company to Become World's Largest?
According to various sources Russia's public oil giant Rosneft aims to take over the joint–venture company TKN–BP. This acquisition could make the company the global number one in the oil industry, industry experts believe.
London/United Kingdom – Anonymous BP insiders have already confirmed negotiations with Rosneft about the acquisition of the British company's shares in the Anglo–Russian joint–venture company TKN–BP. This deal could make Rosneft the world's biggest producer of crude oil – controlled by the Kremlin.
The deal volume is estimated to be in the US $ 25 billion range. BP currently holds a 50 percent share in TKN–BP. The other half is basically held by several private parties. According to unconfirmed media reports, the Rosneft has also issued an offer to the four other major stakeholders.
Rosneft Bundles More than half Of Russia's Oil Production
Should the acquisition proceed as planned, Rosneft could hold more than the half of Russia's oil production. Its output volumes would even surpass the current number one, Exxon Mobil of the US.
Insiders see this decision as part of a plan to bring the country's oil industry back under public control after its privatisation following the fall of the Soviet Union in the early nineties.