Rosneft denies it wants to buy out TNK stake - Business News - Business - The Independent

Rosneft denies it wants to buy out TNK stake

Rosneft yesterday denied it is considering a takeover of the Russian half of the TNK-BP joint venture, as the state-owned oil group reported a 64 per cent jump in profits last year.

Last month Rosneft and BP agreed a ground-breaking $10bn (£6.2bn) tie-up, including a $5bn share swap and plans for a major exploration programme in Russia's Arctic South Kara Sea. But progress has been stalled after an injunction lodged by Alfa-Access-Renova (AAR) – BP's partner in TNK-BP – was upheld in court earlier this week.

AAR claims that the Rosneft deal violates the TNK-BP shareholder agreement specifying that any Russian activities by either party must be put before the joint company's board.

Both parties claim the Russian government has taken no interest in the matter. But the spat has led to speculation about the politics of Russia's oil industry and the involvement – or not – of senior Kremlin figures such as Igor Sechin, the Deputy Prime Minister and chairman of Rosneft, who was a key architect of the deal.

Rosneft's President Eduard Khudainatov yesterday took the opportunity to pour cold water on rumours that the group is planning to buy out AAR's 50 per cent stake in TNK-BP. "We are not in talks about buying AAR's stake or TNK-BP itself, of course not," Mr Khudainatov said.

Annual results published by Rosneft showed profits shooting up to $10.7bn on revenues up by 35 per cent to $63bn, thanks in part to rising oil prices. The company also saw a boost from oil production up by 6.4 per cent, with particularly strong gains from the Vankor and Verkhnechonsk fields in East Siberia and the Samaraneftegaz production unit in the south-eastern Samara region. Net debt is down by 26 per cent to $13.7bn, the company said.

Under the proposed BP deal, the British oil major will take a 9.5 per cent stake in Rosneft, which is 75 per cent-owned by the Russian state. In return, Rosneft will receive a 5 per cent slice of BP shares.

But nothing can happen pending a formal arbitration process to settle the falling out with TNK-BP.

BP claims that it was prevented from sharing details of the deal with the TNK-BP board in advance by the market sensitive nature of the share-swap element of the deal. And Bob Dudley, the BP chief executive, took a typically understated stance when the company published its annual results earlier in the week, stressing the continuing cordial relations between the two sides and forecasting an amicable, commercial outcome.

But not all make such a relaxed reading of the situation. And the four billionaire oligarchs who make up the AAR consortium – Mikhail Fridman, Victor Vekselberg, Leonard Blavatnik and German Khan – earlier in the week agreed that they will vote down a proposed $1.8bn special dividend at the TNK-BP board meeting later this month. Although there are 11 board members – four BP nominations and another three independents alongside four AAR representatives – the dividend vote is not open to the independent appointees.

News
Paper trail: the wedding photograph found in the rubble after 9/11 – it took Elizabeth Keefe 13 years to find the people in it
newsWho are the people in this photo? It took Elizabeth Stringer Keefe 13 years to find out
Arts and Entertainment
Evil eye: Douglas Adams in 'mad genius' pose
booksNew biography sheds light on comic genius of Douglas Adams
Sport
FootballFull debuts don't come much more stylish than those on show here
News
i100
PROMOTED VIDEO
Life and Style
Kim Kardashian drawn backlash over her sexy swimsuit selfie, called 'disgusting' and 'nasty'
fashionCritics say magazine only pays attention to fashion trends among rich, white women
Arts and Entertainment
TVShows like Agents of S.H.I.E.L.D are little more than marketing tools
Arts and Entertainment
Hit the roof: hot-tub cinema east London
architectureFrom pools to football pitches, rooftop living is looking up
Travel
travel
News
The ecological reconstruction of Ikrandraco avatar is shown in this illustration courtesy of Chuang Zhao. Scientists on September 11, 2014 announced the discovery of fossils in China of a type of flying reptile called a pterosaur that lived 120 millions years ago and so closely resembled those creatures from the 2009 film, Avatar that they named it after them.
SCIENCE
Life and Style
tech
News
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
Matisse: The Cut-Outs exhibition attracted 562,000 visitors to the Tate Modern from April to September
art
Life and Style
Models walk the runway at the Tom Ford show during London Fashion Week Spring Summer 2015
fashionLondon Fashion Week 2014
News
Kenny G
news
News
peopleThe black actress has claimed police mistook her for a prostitute when she kissed her white husband
Life and Style
techIndian model comes with cricket scores baked in
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SQL Developer - Watford/NW London - £280 - £320 p/d - 6 months

£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Senior BA - Insurance **URGENT**

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Training Coordinator / Resource Planner - City, London

£35000 - £38000 per annum + Benefits: Ashdown Group: Training Coordinator / Pl...

Data Governance Manager (Solvency II) – Contract – Up to £450 daily rate, 6 month (may go Permanent)

£400 - £450 Per Day: Clearwater People Solutions Ltd: We are currently looking...

Day In a Page

Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week