Russian state-controlled oil giant Rosneft will
produce 5 percent of global oilafter acquiring all of TNK-BP, Rosneft CEO
Igor Sechin said on Tuesday.
“Oil production will rise from 2.4 million
barrels per day to 4.1 million bpd and overall output (of hydrocarbons) will
grow to 4.6 million barrels (of oil equivalent) per day from the current 2.6
million bpd,” Sechin said in a conference call with investors.
Rosneft announced landmark deals on Monday to
buy 100 percent of TNK-BP from British oil major BP and the AAR consortium of
Russian billionaire shareholders.
Under the terms of
the deals, BP will receive $17.1 billion in cash for its 50 percent stake plus
stock representing 12.84 percent of Rosneft’s shares while the AAR consortium
of Soviet-born billionaire shareholders will sell its 50 percent stake in the
joint venture “for cash consideration of $28 billion.”
BP also intends to
use $4.8 billion of the cash consideration to acquire a further 5.66 percent
stake in Rosneft from the Russian government. BP would acquire the Rosneft
shares from the Russian government at a price of $8 per share (representing a
premium of 12 per cent to the Rosneft share closing price on the bid date: 18
October 2012), the British oil giant said in a statement.
Therefore, after
the proposed transaction is completed, BP will acquire a total 18.5 percent
stake in Rosneft and net $12.3 billion in cash.
“This would result
in BP holding 19.75 percent of Rosneft stock, when aggregated with BP’s 1.25
percent current holding in Rosneft.”