Rosneft, BP sign upstream, downstream agreements

June 19, 2015   + + +  OAO Rosneft agreed to sell BP PLC a 20% share of Taas-Yuryakh Neftegazodobycha in eastern Siberia for $750 million.

The joint venture will further develop the Srednebotuobinskoye oil and gas condensate field, which was commissioned in October 2013 and produces about 20,000 b/d. The companies will also jointly undertake exploration of an area of mutual interest (AMI) in the region that covers 115,000 sq km.

In addition, they agreed to explore two other AMIs in the West Siberian and Yenisey-Khatanga basins covering 260,000 sq km. If successful, joint studies will lead to new joint ventures to obtain licenses and conduct exploration activities. Rosneft would own 51%, BP 49%.

Rosneft and BP also agreed to form a joint venture to carry out further appraisal work on the 2009 Rosneft-discovered Baikalovskiy field inside the Yenisey-Khatanga AMI.

The transaction “underlines BP’s position and strategy as a successful long-term investor in Russia,” said David Campbell, president of BP Russia (OGJ Online, Nov. 26, 2012).

Total sheds stake in German refinery

June 19, 2015   + + +  The companies also agreed to pursue a reorganization of their refining joint venture in Germany, Ruhr Oel GMBH. Rosneft acquired a 50% share in 2011.

Rosneft would double its minority shares in three refineries: Bayernoil, MiRO, and PCK Raffinerie. BP would own 100% of the Gelsenkirchen refinery and the DHC Solvent Chemie solvent production facility.

OAO Rosneft has completed a deal for the purchase of Total SA’s minority interest in the 11.5 million-tonne/year PCK Raffinerie GMBH refinery, located along Druzhba pipeline in Schwedt, Germany, about 120 km northeast of Berlin.

Total and Rosneft signed a final sale and purchase agreement for Total’s 16.67% share in the refinery at the St. Petersburg International Economic Forum in Russia on June 19, the companies said. Valued at $300 million excluding working capital, the transaction is due to close following regulatory approvals, Total said.

Rosneft, which already holds an 18.75% stake in the Schwedt refinery, first announced the deal in late 2014 after signing an agreement with Total outlining main terms and conditions for the proposed sale (OGJ Online, Dec. 1, 2014).

 At final closing, Rosneft, together with its BP PLC-joint venture Ruhr Oel GMBH (37.5%), will own close to 55% of the German refinery (OGJ Online, May 6, 2011). Additional stakeholders in the Schwedt refinery include Royal Dutch Shell PLC (37.5%) and Eni SPA (8.33%).

Total’s decision to shed minority interest in the Schwedt plant is in line with its 2017 target to reduce the company’s European refining and petrochemical capacity by 20%, said Philippe Sauquet, president of Total Refining & Chemicals.

Source: Rosneft
published by Oil & Gas Journal