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Breakingviews: Rosneft offer is positive

Thursday, October 18, 2012 - 03:50

Oct. 18 - Rosneft's offer for the oligarchs' 50% of TNK-BP and some of BP's 50% could be a good deal for all involved, say Breakingviews.

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-- 28 billion dollar offer for half of TA KBP. Could be the best deal for all involved with me now to discuss the stoning of voters breaking news economic sets up. And what how -- -- and whatever was left off in twenty billion followed by half but we understand that some breaking news on the other half. It is a report now that BP has received an offer for its half of this joint venture the first offer was for the Russian oligarchs. Who own 50%. Of the venture. There's been a lot of political swirling around pressure on this on this venture. And it now looks like the Russian state oil company rosneft is gonna get the whole thing. Sold twenty million of often the all the dots from their -- To be hot on the boat and we went off and I'm. As I came into the studio we had our number. On an even if we do get a number it won't necessarily be bad meaningful because a big harsh and of this is expected to be in shares of -- snapped. I'm -- BP will end up with a substantial holding -- -- -- -- recent seats on the board possibly some kind of input into management although that's much more doubtful. And quite possibly some kind of privilege status for future deals in terms of drilling in the North Sea. So it will be difficult to evaluate this deal we'll of course -- our -- from the news comes through. But it does look like I'm BP has salvaged a situation that was looking quite difficult for it as little as a few weeks ago. Yes. This deal for the original 50% that was going to be a good deal for BP is. The -- vineyard is this week to steal the rosneft taking the -- the -- should buying as and even better deal from him. It depends a little bit -- what how much money and what kind of leverage in terms operating leverage how much input they have into the situation but it does look this way. I remembered BP managed to irritate it's a look at our partners and it seemed to be in the process of having very troubled relations with rosneft also. It now seems that with the return. The great. Oil leader in that Putin administration the reception into power. That on BP is back in favor and that BP as long as the current regime stays there it's gonna have a reasonable position in terms of being a foreign investor in the Russian oil industry. But I have to say that Russia is a very nationalistic company they're known that country. They don't seem to be terribly interested in what foreign companies want they want to get out of foreign companies what they have. And so in comparison to the first steel the deal that they're now is now being wound up. Where BP has done extremely well it's made more than twice its initial investment in just a few years. On the future will not be nearly as lucrative for PP as if that's the past although the future now looks brighter than it did perhaps a few months ago. Love brings Johnson an expression you mentioned Russian politics of course. Let's just seeing it can be tricky -- -- that BP has been bones before. What does the future hold them. Well we hope. BP hopes at least that. They've now mastered the current environment approved in looks to be quite firmly and taught in power and such and looks to be -- for me a favor. And BP now it's been good position with section. But all of these things can change. And then BP could find itself somewhat on the outside still. For right now this is particularly. Favorable situation. For a company that seem to be on the wrong side of the government until quite recently. OK I won't say how many -- fast moving story nonchalant about going to talk about and then if you took a vote. Thank you very much spouse open my front sits about that they can use and look how fast. Promote financial inside what's in the US they can you show every day it felt that he's done some -- that TB ST I'm Jamie -- -- -- -- -- --

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Breakingviews: Rosneft offer is positive

Thursday, October 18, 2012 - 03:50