Rosneft to raise output as soon as current OPEC+ deal ends

Russia’s state oil company Rosneft is planning to lift oil production as soon as the current OPEC+ deal ends, according to a person close to the company. Rosneft, has agreed to take control of Iraqi Kurdistan’s main oil pipeline. Rosneft has said it signed a number of agreements with Turkey’s leading energy companies on the sidelines of the top level negotiations.

This file photo shows the Achinsk oil refining factory, owned by Rosneft. Rosneft has approved deals to sell oil products to BP worth $6 billion. AFP photo. A giant platform transports a 1450-ton-heavy reactor for an oil refining factory under a walking bridge, which was preliminary lifted. Rosneft looks to cement its grip of oil production via talks with BP over the group’s stake in the TNK-BP venture. AFP photo.

The comments, the first Russian response to the oil price war launched by Saudi Arabia over the weekend. Russia’s state oil champion Rosneft on May 5 struck a $2.5 billion Arctic exploration deal with Norway’s Statoil. It boost investment in the autonomous region to $3.5 billion despite Baghdad’s military action.

Company suggest that Rosneft could start boosting output as soon as April 1. Russia’s top crude oil producer Rosneft said Nov. 12 that its board had approved deals to sell oil product cargoes to BP worth over $6 billion. Oil group Rosneft is to buy the remaining shares in TNK-BP Holding for a fraction of the price it paid BP.

Putin says in a statement “We value our relations with our neighbors and are confident that the project will develop well”.

The person, who spoke on condition of anonymity, said that Rosneft had prepared for any scenario. Its third major tie-up in a month and a sign of its growing global ambitions. It would be able to withstand the current plunge in oil prices. Russian state-controlled oil company Rosneft has signaled its interest in acquiring BP’s share in its Russian joint venture TNK-BP.

Company asked how rapidly Rosneft could increase production. A group of oligarchs for their stakes, in a worrying development for minority shareholders in Russian companies. The person said analysts who estimate the company could boost output by 300,000 barrels a day within a week or two are well informed.

BP is now being courted by two potential buyers as TNK-BP’s Russian shareholders recently confirmed they are eager to buy the British firm out too. The alliance’s signature was overseen personally by Vladimir Putin in advance of his return to a third Kremlin. The Russian state-owned company said in a filing that it would sell up to 3.2 million metric tons of fuel oil.

Rosneft Chief Executive Officer Igor Sechin is a close ally of President Vladimir Putin and has been the most prominent naysayer of the country’s cooperation. Rosneft bought the holding company and its parent TNK-BP last year in a $55 billion takeover. Rosneft said in a statement yesterday that it has informed BP of its interest in buying its stake in the firm.

Rosneft, has agreed to take control of Iraqi Kurdistan’s main oil pipeline. The deal to buy them out for about $1.5 billion was announced by Rosneft. TNK-BP, Russia’s third-largest oil producer, is owned on a 50-50 basis by BP and AAR, a consortium of Russian billionaire shareholders.

Saudi Arabia and other countries in the Organization of Petroleum Exporting Countries to curb oil production. BP Singapore worth as much as $2.6 billion from the Far East ports of Nakhodka or Vanino between November 2013. TNK-BP has been mired in a lengthy dispute after AAR blocked BP’s potentially-lucrative deal with Rosneft last year.

Chris Weafer, senior partner with consultancy Macro-Advisory says “It will leave a bad impression and raises concerns”.

The deal will see Norway’s state-held group win one-third ownership. Rosneft signed an agreement on petroleum product supplies for the period between 2018 and 2020 with Demirören Group, the company said in a statement. The next time a big state company is looking at an acquisition of a company.

Saudi Arabia and other members of the group left a fractious meeting with no deal to continue the cuts beyond April 1. AAR has also indicated its interest in buying out BP. The agreement also covers three Rosneft blocs in the Far Eastern Sea of Okhotsk. The British oil firm and the Russian tycoons have 90 days to negotiate in good faith.

Saudi Arabia heavily discounted its oil over the weekend, triggering a plunge of more than 20% in international crude futures. Rosneft said it should be able to acquire stakes in undisclosed Statoil international projects in return. The move appears to be part of a strategy by President Vladimir Putin to boost Moscow’s Middle Eastern political.

Rosneft’s London-listed shares dropped 19.5% on Monday, while markets in Moscow were closed for a public holiday. The document follows up on the development of the existing partnership between the parties. A 50 percent stake in TNK-BP could be worth about $18 billion, according to the company’s market valuation.

Russia’s finance ministry said that the country’s oil-wealth reserves would be sufficient to cover lost revenue. Rosneft has not disclosed the timeframe for other deals, but a source familiar with the agreements. Rosneft said it believes that its purchase of BP’s share in the Russian venture.

Rosneft’s investment comes amid a crisis in Kurdistan’s relations with the central government in Baghdad. The new agreement determines the intention of the parties to sign an additional contract for the supply of up to 4.6 million tons of oil. It would be in the best interest of both Rosneft’s and BP’s shareholders.

The United States called the referendum a provocation but Moscow has effectively supported the vote. Rosneft said it planned to buy out holders of ordinary shares at 67 roubles ($2.07) per share. TNK-BP has generated healthy returns both for the British oil giant and the Russians. It is for six to 10 years at oil prices of $25 to $30 a barrel.

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