Russia's biggest oil producer OAO Rosneft (ROSN.RS) plans to use a large part of the $15 billion loan it secured from China Development Bank for refinancing purposes, Vedomosti daily reports Thursday, citing the company's Chief Financial Officer Peter O'Brien.
A Rosneft presentation published on its web site shows that the company stands to repay $8.46 billion in debt this year. That sum includes $870 million in the first quarter, $4.12 billion in second quarter, $1.72 billion in third quarter and $1.75 billion in the fourth quarter.
Peter O'Brien also said the export-backed loan may be used for new acquisitions and to raise dividend payments, the daily reports.
He estimated free cash flow this year at $2 billion under a $41 oil price and a ruble-dollar exchange rate at RUB35/$1.