Press

Rosneft complete privitisation

Posted by OilVoice Press - OilVoice

12-Dec-2016


The Company announces on the signing of the agreement for the sale of a 19.5% stake in Rosneft Oil Company owned by Rosneftegaz. The stake was sold to the consortium of international investors, which comprises Qatar Investment Authority, one of the world largest sovereign funds and Glencore, a leading commodities producer and trader.

The integrated privatization deal with the sale of a 19.5% stake in Rosneft and the sale of a controlling government stake in Bashneft is the largest privatization deal in Russian history and the largest M&A deal in the global oil and gas industry in 2016. The economic effect for the Russian Government from the successful completion of the privatisation, including the value of synergies between Rosneft and Bashneft, will exceed RUB 1.1trln with budget revenues in Q4 2016 equal to RUB 1,040 bn.

As the direct result of the disposal of a 19.5% stake sale in Rosneft total budget revenue will amount to RUB 710.8bn.

The acquisition of the Rosneft stake will be financed with investors' own funds and will also involve debt financing.  Investors' equity in the acquiring vehicle will amount to EUR2.8 bn. The bulk of debt financing will be provided by Banca Intesa Sanpaolo that will arrange financing to the acquiring vehicle on non-recourse basis with a pledge of the acquired shares. Additionally, Glencore's equity exposure on its investment in Rosneft shares will be reduced to EUR300 mn with full indemnity to Glencore's balance sheet on other potential liabilities to the acquisition vehicle as through structured risk reduction instruments.

On December 7, 2016 Rosneft Board of Directors has also approved a strategic cooperation agreement with Qatar Investment Authority and Glencore, providing for further cooperation in upstream projects, logistics and global trading.

With a view to further improve the Company's investment story the Board of Directors of Rosneft has also approved changes to the dividend policy increasing the minimum payout ratio to 35% of IFRS net income. The new policy also implies a shift to semi-annual dividend payments.

Given the deepening strategic relationship with Rosneft Glencore will sign a new crude oil supply agreement, which will enhance its trading activity with Rosneft.

As a result of the transaction, two important world-class shareholders would be added to Rosneft's shareholder structure that further strengthen its shareholder following consisting of more than 500 Russian and international institutional investors.

Commenting on the successful signing of the transaction Rosneft Oil Company CEO and Chairman of the Board of Directors of Rosneftegaz, Igor Sechin said: «While being extremely complex to execute, this privatization deal marks itself as the largest in the history of Russia.  Bashneft sale, follow-on synergies and enhancing Rosneft's story with new shareholders allows the Russian state to obtain considerable revenue, which also includes the increase in the value of government's residual controlling stake. Despite what was a challenging market environment we successfully completed a comprehensive project identifying strategic investors that match the long-term interests of the Government of Russian Federation and those of the Russian oil and gas industry. We welcome Qatar Investment Authority and Glencore in joining Rosneft as its new shareholders, these are true strategic investors. I am certain that our collaborative work, including potential further investments in joint projects will create additional synergies for all of Rosneft shareholders».

His Excellency Sheikh Abdulla bin Mohammed bin Saud Al-Thani, Qatar Investment Authority CEO commented: «This investment reflects our strategy of investing in high quality assets with strategic partners globally to generate long-term financial returns. It also demonstrates our commitment to diversifying our portfolio across geographies, sectors and asset classes. We are looking forward to working with our partners to ensure the success of this outstanding business».

Commenting on the transaction, Glencore CEO Ivan Glasenberg said: «We are delighted that the strong relationships that already exist between Rosneft, QIA and Glencore have enabled us to successfully enter into this transaction. Glencore looks forward to working with both parties to take advantage of the significant opportunities which are expected to be presented across the Russian and global oil markets».

The settlement is expected by December 15, 2016 subject to fulfillment of relevant closing conditions.



New service from OilVoice
Trip Shepherd is for companies who need to track their staff in areas of risk.
It's free to use, so we invite you to try it.

Rosneft

More items from oilvoice


Cyber Security Experts Unite to Protect Europe’s Critical Industries

CS4CA Summit Returns to London this October Staying abreast of fast-paced industry developments is crucial for cyber security professionals. And while one can learn a lot from publications and social media, it's hard to beat the value of insights gained first-hand from peers. This is why 150+ IT ...

OilVoice Press - OilVoice


Posted 1 year agoPress > cybereurope

Africa E&P Summit

The organisers of the Africa E&P Summit are bringing together Africa's leading exploration companies and governments, just one of the many reasons why you should be attending frontier's event that they are organising and hosting in London at the IET: Savoy Place, 22-23 May. Over 200 key senior exec ...

OilVoice Press - OilVoice


Posted 1 year agoPress > Africasummitoil summit +2

Equinor Deepens in Offshore Wind in Poland

Equinor has exercised an option to acquire a 50 % interest in the offshore wind development project Bałtyk I in Poland from Polenergia. This transaction is a follow-up of the agreement between the two companies which came into force in May 2018 , by which Equinor acquired a 50 % inter ...

OilVoice Press - OilVoice


Posted 1 year agoPress > EquinorEquinor EnergyPoland +2

Nigeria has highest capex on crude and natural gas projects in sub-Saharan Africa Over Next Seven Years, says GlobalData

Nigeria accounts for more than 34% of the proposed capital expenditure (capex) on planned and announced crude and natural gas projects in the sub-Saharan Africa over the period 2018–2025, according to GlobalData , a leading data and analytics company. The company's report: ‘H2 2018 Production ...

OilVoice Press - OilVoice


Posted 1 year agoOpinion > GlobalDataNigeriaCrude +5

CNOOC Signs Strategic Cooperation Agreements with 9 International Oil Companies

HONG KONG, Dec. 18, 2018 /PRNewswire/ -- CNOOC Limited (the "Company", SEHK: 00883, NYSE: CEO, TSX: CNU) announced today that its parent company, China National Offshore Oil Corporation (CNOOC), has signed Strategic Cooperation Agreements with 9 international oil companies including: Chevron, Conoco ...

OilVoice Press - OilVoice


Posted 1 year agoPress > CNOOCChina National Offshore Oil CorporationChevron +11
All posts from oilvoice