Major Russian Producer Intensifies Efforts to Rebalance Portfolio Through Deals

Rosneft is intensifying its efforts to rebalance its portfolio and strengthen cooperation with European companies, closing the purchase transaction with France’s Total concerning the 66.67% share in AET-Raffineriebeteiligungsgesellschaft mbH and announcing the completion of the transaction to sell a 20% share of Taas-Yuryakh Neftegazodobycha LLC to UK-headquartered BP. 

"Rosneft and Total have closed the sale and purchase transaction concerning the 66.67% share in AET-Raffineriebeteiligungsgesellschaft mbH, representing a 16.67% effective share in PCK Raffinerie GmbH (Germany)," a statement released by Rosneft on Tuesday says. "The deal represents a natural element of Rosneft strategy aimed at strengthening its presence in the key European market, one step further along the added value chain."

As a result of the transaction, the company, led by Igor Sechin, will reinforce its position in the Berlin/Brandeburg area. The transaction, which follows the agreement signed by Rosneft and Total in June, will allow the Russian giant to create synergies thanks to existing oil infrastructure in the area.

A few hours before, on Monday, Rosneft and BP announced the completion of a transaction to sell a 20% share of Taas-Yuryakh Neftegazodobycha, which is developing the the Srednebotuobinskoye oil and gas condensate field in Eastern Siberia.

"The companies’ cooperation within the project will contribute to expanding local infrastructure and boosting production capacities of these Eastern Siberian fields, one of the key regions of Rosneft’s business," Rosneft wrote on Monday.  

Last week, the Russian company reported a 16.1% increase in net income in the first nine months of the year with respect to the same period in 2014, despite a 7.8% decrease in revenue.