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Breakingviews: Rosneft's Russian roulette

Wednesday, Oct 24, 2012 - 03:41

Oct. 24 - Oil is vital to the Russian economy and Rosneft is taking a gamble that it won't stifle competition and its own effectiveness by taking over TNK-BP's oil fields, say Breakingviews.

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Russian oil giant rosneft has probably been pretty -- with -- itself falling it's 55 billion dollars or eight on ten KBP. Which will make it the world's biggest listed crude -- but have they opened up a major downsides. Of the deal with me now to discuss this story is which is breaking these assistant accent on the Cole. I got it thanks so much for joining us essentially this deal will mean less competition. And that's the point very simple one that that that we're making today united a lot of good to talk about this deal has come. -- from from Donovan from the from the west saying he's a good deal for BP won't does BP do next one of the times -- -- Or trying to do here is trying to put them. Focused perhaps you've been on -- that -- that site. Walls roles and if so how how the company got a reform. In future and how does this -- piled up. And credited courses was great relevance full BP investors which could be vehicles collided about a 20% stake says. Who would've wanted to see rose -- and sort of we can't let ourselves of of see -- that's a foot off into the sunset we have to. Look at what kind of company rosneft probate sort of a -- long preamble what what we're trying to say here is that. Ten KBP was that it was a pretty good operate you know I haven't seen the thing that because all the scandal on the all of the unpleasantness that was surrounding it that somehow some kind of -- -- company intends all of its operations. It was pretty efficient. The people rules. Good practices good operational expiration practices to that policy. Somewhere wondering -- to whether. Those skills will be diluted. Perhaps out of existence as part of that they got beat in the off. Or indeed whether. Whether you know in rosneft will suffer simply because a competitor that competitor has been taken out of to the picture. Ankle is begs the question does this mean that efficiency is it's no -- such a big priority for Russia. Well I think that's you know what's on the line here clearly you know if if Russia and and Russia's state controlled and prizes to will sufficient businesses -- -- I hope to you know the -- -- -- was important that country. And I think on the -- something like half bold government revenues so it won't go to -- case. Ole -- -- to want to be as efficient as possible. But I think one Estes who -- like question. To the Russians really won't efficient. Open -- companies. Which couldn't deliver value to shareholders or -- they want to use the yielded just is sometimes too easy access and of course it -- not -- it would mean -- vessel in the government's privatization plan. I mean I think that you know that that's been any longer running things here isn't it that and -- that Putin is announces the go full time as the as the leader. -- -- One of the fleet is about long Sundays it has been you know relaxation made their -- on election night. Whereas. But actually ones -- this in the that the -- to try to reassert its now. I'm pops this is part of thought that recession. -- thank you very much interesting space and we'll watch that space of our view is. That's open now my thanks to a lot of coal -- financially in size what I US breaking V show every day at twelve that the Easton. Seventeen SE BST I'm and -- all and this is choices.

Breakingviews: Rosneft's Russian roulette

Wednesday, Oct 24, 2012 - 03:41

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