* Sechin says Iraq's delegation to visit Moscow on May 10
* Rosneft plans to produce 100 bcm of gas a year by 2020
* Rosneft's 2013 capex seen at $20 bln post TNK-BP deal
* Sechin says market capitalisation of Rosneft to reach $120
bln in two-year time
By Vladimir Soldatkin and Dasha Afanasieva
MOSCOW/LONDON April 23 Rosneft said on
Tuesday it may seek an alliance with ExxonMobil or other
partners in Iraq and double its Russian gas market share by
2020, boosting its credentials as the world's largest listed
Rosneft's Chief Executive Officer Igor Sechin told reporters
that the company is considering teaming up with its
long-standing partner, ExxonMobil, in tapping oil and gas in
"We will work with anyone who offers good terms, we'll work
with ExxonMobil too," he said to the question of who might
partner Rosneft in Iraq. He also said that a delegation from
Iraq's oil ministry will come to Moscow on May 10.
"The ministry of Iraq will come to Moscow... by our
invitation to work with us," he said after he launched a charm
offensive in London where he and other Rosneft's officials made
a presentation to investors.
Rosneft has been expanding since Sechin, a powerful
long-standing ally of Russian President Vladimir Putin, was
appointed to head Russia's top oil producer last May.
It bought Anglo-Russian oil company TNK-BP from BP
and the AAR consortium of Soviet-born tycoons for $55
billion, clinched deals with international majors to tap
Russia's Arctic hydrocarbon reserves, and acquired domestic gas
Sechin said that the united company may reach a market
capitalisation of $120 billion in two years - to become Russia's
largest company - compared with its current value of around $73
billion and $90 billion that of Gazprom's.
The state may sell as much as 19 percent in Rosneft in a
wider privatisation, but Sechin said he has not
received any instruction from the government, downplaying the
prospects of reducing the state's share in the company.
Sechin said he would cooperate with minority shareholders in
TNK-BP, some of which have complained of unfair treatment
relating to the buyout, but said Rosneft was not a "charity
Rosneft has also raised the stakes in a battle with rival
Russian state-owned corporation Gazprom, aiming to more than
double its share of the domestic gas market by 2020, Rosneft
said in the presentation.
Rosneft aims to increase its share of the domestic gas
market from 9 percent to 19-22 percent by 2020, according to a
presentation to investors in London on Tuesday, potentially
eating into the 70 percent share of gas export monopoly Gazprom.
It expects to produce more than 40 billion cubic meters
(bcm) in 2013, over 60 by 2016 and 100 bcm in 2020, of which
more than half is to be produced at newly-acquired projects.
Rosneft has hired former Gazprom executive Vlada Rusakova to
oversee its gas business.
Rosneft's main onshore gas project is the Kharampurskoye
field - in Russia's largest gas-producing region, Yamal Nenets -
which holds more than 400 bcm in reserves. Its offshore project
Sakhalin-1 in the Russian Far East, jointly developed by Rosneft
and ExxonMobil, has been pumping gas since late 2005.
Rosneft has also teamed up with ExxonMobil to build a $15
billion liquefied natural gas plant in Russia's Far East by
2018. According to the Oxford Institute for Energy Studies,
Russia's gas consumption in 2013 will outstrip the pre-crisis
level of 2008.
Rosneft also said it aims to reduce capital expenditure by
cutting costs through combining its business with TNK-BP. It
expects capex of $20 billion this year. The previous guidance
for Rosneft's capex was $15 billion, and $6 billion for TNK-BP.
Sechin also told investors on Tuesday that the company is
able to reduce spending following the deal to acquire TNK-BP
with synergies seen at $10 billion over next few years.