Rosneft Acquires Bashneft Controlling Stake

Russian state oil giant Rosneft has closed its deal to acquire Bashneft, Russia's sixth-largest oil firm, it said in a London stock market filing October 13.

CEO Igor Sechin signed the deal to buy the 88,951,379 Bashneft shares and on October 12 Rosneft fully met its obligations under the agreement by paying RUB 329.7bn ($5.25bn) into the accounts of Russia’s Federal Treasury, completing its purchase of the state's controlling 50% stake in Bashneft.

Bashneft: Russia's sixth largest oil firm

A Rosneft statement added: “After the Russian President noted potential synergies from the deal and the government decree was released, Rosneft’s stock price increased by 7.5%.”

Rosneft said it added 10% of liquid hydrocarbon production and 20% of refining throughput as well as for significant synergies arising from optimization of mutual oil supplies, transport and logistics costs, drilling cost reduction and joint use of production assets' infrastructure and technology.

Mark Smedley