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Qatar and Glencore buy $11.3 billion share in Russia's Rosneft

Anglo-Swiss multinational commodity trading and mining company Glencore and the Gulf emirate of Qatar have bought into Russian state oil producer Rosneft.

Qatar and Glencore buy $11.3 billion share in Russia's Rosneft


Anglo-Swiss multinational commodity trading and mining company Glencore and the Gulf emirate of Qatar have bought into Russian state oil producer Rosneft, Rosneft´s CEO Igor Sechin said on December 7, 2016.

The 2 partners are expected to pay 10.5 billion euros (11.3 billion dollars) for a 19.5% stake in the Russian company.

Igor Sechin told Putin that Rosneft had taken part in talks with «more than 30 companies, funds, professional investors, sovereign funds, financial institutions from countries in Europe, the Americas, the Middle East and the Asia-Pacific region» ahead of the deal.

Russian President Vladimir Putin announced the deal personally on state television, saying it was the «largest acquisition in the oil and gas sector in the world in 2016.»

The sale is part of the Russian government's efforts to privatise some state assets to help balance the budget amid a 2-year recession.

«The transaction was made on an upward trend in oil prices and reflects on the value of the company,» Putin said in a meeting with Rosneft CEO Igor Sechin. «In that sense this is a good time

Putin stressed that the controlling stake in the company would remain in the hands of the Russian government, which controls over 50% of shares.

Michael Moynihan, research director for Russia at consultants Wood Mackenzie told the Financial Times: «Rosneft will be able to expand its access to global oil markets through this deal with a major oil-trading company.»

Through the deal, Qatar makes a rare venture into Russia, the world’s second-largest oil producer.

Glencore has long traded in Russia. It has a 25% stake in RussNeft, a mid-sized oil producer, as well as substantial agricultural holdings and a stake in aluminum giant United Company.

Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 90 commodities.

The Group's operations comprise around 150 mining and metallurgical sites, oil production assets and agricultural facilities.

To read this news in Russian: Article 1, Article 2.

Source : Neftegaz.RU


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