The Trader Takeover
The third party has eventually emerged in the deal for Russneft sale. It is Swiss trader Glencore that filed the second bid for Russneft to the Antimonopoly Service. Glencore is willing to acquire three subsidiaries of the company, including Aganneftegazgeologia. As a result, Basic Element of Oleg Deripaska will be stripped of 16 percent of Russneft output.
Russia’s Federal Antimonopoly Service (FAS) unveiled yesterday the name of the second bidder for Russneft. The assets are being eyed by Swiss trader Glencore, which, however, intends to buy a stake not in the company but in its three subsidiaries – Ural Neft, Aganneftegazgeologia and Udmurt National Oil Co. Glencore approached FAS for respective permit September 11, but was told to provide additional documents, which it has finally submitted.
In Glencore, they confirmed that they lodged a bid to FAS for three subsidiaries of Russneft, but declined to elaborate.
Glencore is a long partner of Russneft former owner Mikhail Gutseriev. Gutseriev, who created Russneft by buying out some insignificant oil production assets on Russia’s market, used to raise funds with Glencore, having borrowed $2.33 billion overall. In 2003, Glencore became the owner of three subsidiaries of Russneft – Varieganneft, Ulyanovskneft and Nafta-Ulyanovsk, where it owns 39 percent to 49 percent. The trio produced 2.255 million tons of oil in 2006.
Three subsidiaries that Glencor is willing to acquire produced 1.27 million tons past year. Aganneftegazgeologia accounted for the better part of it, 1 million tons. This year’s aggregate output is estimated at 2 million tons. In terms of production, Aganneftegazgeologia will become the third of three dozen subsidiaries of Russneft.
So far, Basic Element of Oleg Deripaska has been the sole official bidder for Russneft assets, planning to acquire them via offshore firms.
The sources say Glencore will get the stocks of three companies in settlement of Russneft debt to it. Once the deal is completed, it will control 16 percent of Russneft production.
www.kommersant.com
All the Article in Russian as of Oct. 25, 2007
|
