Russia sees no threat over possible Rosneft, TNK-BP deal

2012-10-18 09:04:54 GMT2012-10-18 17:04:54(Beijing Time)  Xinhua English

The Russian government saw no threat of the fuel market monopolization if oil giant Rosneft acquires TNK-BP company, the Russian energy minister said Thursday.

"I believe there will be no (oil market monopolization). There is strong enough competition in the market," Alexander Novak told reporters.

"This is quite a normal market structure," he said, adding Rosneft so far hasn't submitted to his ministry any information about the possible deal with British Petroleum (BP).

On Wednesday, Rosneft CEO Igor Sechin arrived in London for negotiations with BP head Robert Dadly on a possible deal. Rosneft eyes acquisition of BP's share in the TNK-BP for 25 billion U.S. dollars.

Currently, Russian group Alfa-Access-Renova (AAR) possesses 50 percent of the TNK-BP shares, while BP owns another half.

Rosneft also negotiated the purchase of the AAR's share for 28 billion dollars, local media reported.

If the deal is reached, Rosneft will become the sole owner of the TNK-BP.

Rosneft is a leading company of Russia's petroleum industry, ranking among the world's top publicly traded energy companies. The Russian government holds over 75 percent of shares in the company.

The TNK-BP is a leading Russian oil company formed in 2003. It is among the top 10 privately-owned oil companies in the world in terms of crude oil production, whose upstream operations are located primarily in Siberia and the Orenburg region.

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Editor: Miao Miao
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