Rosneft

IPO

In July 2006, the initial public offering (IPO) of Rosneft took place. The Federal Service for Financial Markets of Russia allowed the placement and circulation of 22.5% of Rosneft shares outside the country. Rosneft announced a placement corridor of $5.85-7.85 per share and GDR, based on the company's capitalization after consolidation of $60-80 billion. loan to Western banks, repay interest on it and pay taxes.

Rosneftegaz sold part of its shares to a wide range of investors on the London Stock Exchange (LSE), RTS and MICEX. Also, part of the shares was distributed among the population of Russia through the branches of Sberbank, Gazprombank, etc.

On July 14, 2006 the official placement results were announced. The company sold shares at $7.55 a share, almost at the upper limit of the price corridor, which corresponds to the company's capitalization (taking into account the upcoming consolidation of subsidiaries) at $79.8 billion (according to this indicator, Rosneft became the largest oil company in Russia, overtaking Lukoil "). Investors bought 1.38 billion shares for $10.4 billion. Strategic investors provided 21% of demand; international investors from the USA, Europe and Asia - 36%; Russian investors - 39%; Russian retail investors - 4%. Four investors accounted for 49.4% of the total IPO, including British BP ($1 billion), Malaysian Petronas ($1.5 billion) and China's CNPC ($0.5 billion). There were applications from individuals to purchase 99,431,775 shares of the oil company, and as a result, most of the new shareholders were individuals; partly because of this, the IPO received the unofficial name of "people's".

Rosneft's IPO was the largest in the history of Russia and the fifth in the world in terms of the amount of money raised. The announced amount may increase by another $400 million if the global coordinators of the placement exercise the option within 30 days - they buy another 53 million Rosneft GDRs at the placement price.

Cooperation with BP: the failed alliance and the subsequent purchase of TNK-BP

In January 2011, Rosneft and the British oil company BP announced that they had reached an agreement on a share swap (it was assumed that the Russian company would receive 5% of ordinary voting shares in BP, and the British company - 9.5% of the shares of Rosneft). At the same time, the Russian company agreed with BP to create a joint venture that would develop offshore oil and gas fields in the Kara Sea (Rosneft in it should have owned 66.67%, BP - 33.33%).

Later, the Russian shareholders of the joint oil company TNK-BP (in which BP owns 50%, and another 50% belongs to the AAR consortium, which includes Alfa Group, Access Industries and Renova), dissatisfied with the terms of this transaction, appealed to the London court with a claim for suspension of its execution. In their opinion, this deal would violate the TNK-BP shareholder agreement, according to which the British can carry out oil and gas projects in Russia and the CIS only through TNK-BP. On March 24, 2011, the Stockholm arbitration ruled to ban the deal between BP and Rosneft. During the spring of 2011, BP, Rosneft and the Russian shareholders of TNK-BP tried to find a compromise on modifying the announced agreement, but on May 17, 2011 it became known that the deal was finally broken.

On October 22, 2012, it was announced that Rosneft had agreed with the shareholders of TNK-BP to purchase the latter. It is assumed that the British BP for its share will receive $17.1 billion in cash and 12.84% of the shares of Rosneft, which are on the balance sheet of the Russian company, and the AAR consortium - $28 billion (both transactions are independent of each other). As expected, after the completion of the transaction, British BP will own 19.75% of the shares of Rosneft, and Rosneft itself will control 40% of Russia's oil and gas producing assets and will come out on top among public companies in the world both in terms of reserves and production. In January 2013, the Federal Antimonopoly Service (FAS) granted Rosneft's request to acquire 100% of TNK-BP.

In March 2013, the European Commission's Directorate General for Competition approved the merger between Rosneft and TNK-BP. On March 22, it was completed by acquiring shares of AAR and BP for 27.73 and 16.65 (12.84% of Rosneft's securities) billion dollars. To finance acquisitions, the company raised $31 billion in loans from foreign banks, entered into $10 billion in pre-export financing deals with oil traders Glencore and Vitol, and also placed $3 billion in bonds, reports RBC daily.

In January 2017, BP management announced its readiness to create new joint ventures with Rosneft. According to BP Russia President David Campbell, joint ventures can be created in a variety of industries. Currently, the company has a stake in Ermak Neftegaz and Tass-Yuryakh Neftegazodobycha.

In November 2021, the Yermak Neftegaz joint venture discovered a field with 384 billion cubic meters of gas at the Upper Kubinsky block in Taimyr.

Agreement with ExxonMobil

Some time after the collapse of the deal with BP, at the end of August 2011, the leadership of Rosneft announced that it had reached similar agreements with the American oil and gas giant ExxonMobil. The American company, according to the terms of the strategic partnership agreement, will become a partner of Rosneft in the development of huge oil and gas fields in the Arctic (Russian Prime Minister Vladimir Putin, who was present at the signing ceremony of the agreements, estimated the volume of investments in these projects at hundreds of billions of dollars). In turn, the Russians will have the opportunity to enter ExxonMobil projects, including those in the Gulf of Mexico and Texas. In addition, the agreement provides for the organization of a joint Arctic Research Center in St. Petersburg. Unlike the deal with BP, cooperation with the American company does not provide for an exchange of shares.

The proposed joint development of the Arctic shelf by Rosneft and ExxonMobil in the absence of technologies for eliminating accidents and oil spills in the harsh conditions of the Arctic caused immediate criticism from environmentalists.

Gas partnership with Itera

In February 2012, Rosneft announced the creation of a joint venture with the private gas company Itera. Itera is supposed to contribute its main gas assets (49% of Sibneftegaz OJSC, 49% of Purgaz CJSC), as well as the sales structure of Uralsevergaz-NGK, to the JV, while Rosneft will contribute gas fields of the Kynsko-Chaselskaya group . The combined company's reserves may amount to about 60 million tons of gas condensate and 1.2 trillion m³ of gas.

At the end of May 2013, the sale of the remaining 49% of Itera's shares to OAO NK Rosneft was announced (at that time, Rosneft already owned 51% of Itera's shares). The deal amounted to $2.9 billion, by July 2013 the deal was closed.

Events of 2014 against the backdrop of cooling relations between Russia and the West

On July 17, 2014, the US Treasury announced the imposition of additional sanctions against the Russian Federation in connection with the situation around Ukraine. Rosneft was also included in the sanctions list.

In August 2014, it became known that Rosneft bought the Russian and Venezuelan assets of the Swiss oilfield service company Weatherford in the field of drilling and well workover. The purchase cost the Russian company about $400 million.

In August 2014, according to a number of media reports, Rosneft President Igor Sechin turned to the Russian Government with a request for financial assistance to the company in the amount of 1.5 trillion rubles. One of the proposed methods of assistance, which is at the same time the most expensive, is to buy out new Rosneft bonds worth 1.5 trillion rubles at the expense of the National Wealth Fund (part of the Stabilization Fund). At the same time, the required amount of funds is simply not there, as evidenced by a letter from the Ministry of Economic Development. The need for assistance is explained by the US sanctions imposed against the company, which were joined by European banks and investors operating in the American market and not interested in worsening their position. The newspaper RBC daily, citing data from Rosneft, reported that in the first half of this year, it accumulated a total of 684 billion rubles (more than $20 billion) on its accounts and deposits. According to the estimates of analysts interviewed by the publication, the accumulated amount is sufficient to cover 2/3 of Rosneft's refinancing needs over the next year and a half, and the company is able to pay off its debts without state support.

In October 2014, the company announced on the public procurement website that it was ready to pay up to 38.5 thousand rubles. per hour to lawyers who will be hired to challenge the legality of the imposed sanctions.

In 2014, Rosneft experienced a drop in production, which is associated with a drop in the fields of the main producing asset of Rosneft, Yuganskneftegaz, which provides the state-owned company with about 35% of oil production. The oil service company Agan-Bureniye is trying to get Yuganskneftegaz to repay its debt with a lawsuit to declare Yuganskneftegaz bankrupt.

Despite all the negative statements in the media about the impact of sanctions, as well as the impact of the currency crisis in Russia in 2014-2015, caused by the global fall in oil prices, Rosneft ended 2014 with an operating profit of 593 billion rubles, which is more than in 2013 year - 555 billion rubles. However, net income declined from 555 billion rubles in 2013 to 350 billion rubles in 2014, which was caused by the necessary expenses for the acquisition of non-core assets, in particular, the acquisition of the assets of Weatherford, a well workover and pipeline services company. The purchase was caused, among other things, by the fact that Weatherford was subjected to sanctions pressure from the United States, as well as the adopted strategy for the development of Rosneft's own service business. The acquisition of Weatherford's assets allowed Rosneft to provide the most important regions of its operation with well workover and drilling capacities.

Acquisition of a controlling stake in Bashneft

On October 10, 2016, the Prime Minister of the Russian Federation Dmitry Medvedev signed a government decree, according to which the state-owned 50.075% stake in Bashneft will be sold to Rosneft for 329.7 billion rubles. The sale transaction itself was closed on October 12, and funds from the sale of the package (329.7 billion rubles) were transferred to the account of the federal treasury.

Production of engine oil LADA

Since 2015, Rosneft has been producing Ultra and Professional motor oils under the LADA brand by order of AvtoVAZ.

Vladimir Putin's meeting with Igor Sechin on December 7, 2016, at which the results of the deal to privatize part of the company's shares we

Privatization of 19.5% of shares

On November 27, 2014, Prime Minister D. A. Medvedev signed Decree of the Government of the Russian Federation No. 2358-r on the alienation of Rosneftegaz' shares owned by OJSC Rosneftegaz in the amount of up to 2,066,727,473 (19.5% of shares ) for subsequent privatization at a price “not lower than the market price, determined on the basis of an independent appraiser’s report, but not lower than the price of the initial public offering implemented in 2006”.

In February 2016, President Vladimir Putin approved the sale of part of the shares of Rosneft, his assistant Andrey Belousov then spoke about the sale of 19% of the company's shares to a strategic investor.

On December 7, 2016, it was announced that 19.5% of the shares of Rosneft were acquired in equal shares by the Swiss company Glencore and the Qatari Sovereign Fund. Reuters found among the buyers an offshore firm QHG Cayman Limited, whose owners are not traceable (see ownership chart). Rosneft spokesman Mikhail Leontiev declined to comment on the question of the beneficiaries of QHG Cayman. As follows from the balance of payments data of the Central Bank, this transaction did not bring foreign capital to Russia: all the currency that entered the country immediately went back abroad.

Rosneft shares were sold to a consortium by OAO Rosneftegaz, the deal amounted to 10.2 billion euros (692.4 billion rubles), another 18.4 billion rubles. Rosneftegaz decided to transfer it to the budget in the form of dividends. On December 16, Rosneftegaz reported on the transfer of money to the budget. The new shareholders of Rosneft were supposed to provide 2.8 billion euros, the rest, as expected, was a loan from the Italian bank Intesa Sanpaolo and a syndicate of other banks, including Russian ones. On the eve of the transaction, Rosneft urgently placed bonds for 600 billion rubles, while papers for 173 billion rubles. could buy Gazprombank. The securities are included in the Lombard list of the Central Bank of the Russian Federation, that is, banks can receive a loan from the Central Bank of the Russian Federation against their security.

The deal to privatize 19.5% of the shares caused a mixed response. Taking into account the fact that the state invested more than $200 billion in the company's shares, and taking into account the sale of 19.5% of the shares, the company is estimated at no more than $56 billion. Rosneftegaz's expenses for privatization amounted to 90.4 billion rubles, due to which the company could not pay dividends to the state for 2016. According to the RAS reports, the privatization of Rosneft brought Rosneftegaz a loss of 167 billion rubles.

In April 2017, Russian President Vladimir Putin awarded the buyers of a stake in Rosneft with the Order of Friendship.

In August 2017, there were reports that the capital of QHG Oil (formerly QHG Shares, owns 19.5% of Rosneft) could include a joint venture between China Energy and the Independent Oil and Gas Company (NOC) of Eduard Khudainatov. In September 2017, Sechin announced that the Chinese CEFC would buy out a 14.16% stake in Rosneft from Glencore and a Qatari fund. After the sale of 14.2% to the Chinese, Qatar Sovereign Fund (QIA) and Glencore will have 4.8% and 0.5% of Rosneft, respectively. It was reported that CEFC could provide a loan for the purchase of Rosneft shares and subsequently provided the state bank VTB (5 billion euros). Later, there were reports that the sale of 14% of Rosneft to the Chinese CEFC was postponed. The deal is being delayed due to the risk of too much growth in the CEFC's lending burden. On May 4, 2018, Glencore officially announced the termination of the deal with CEFC. The Chinese CEFC paid a consortium of Qatari QIA and Swiss Glencore €225 million to terminate the deal.

The package, which was intended to be sold to a Chinese company, was bought by the Qatari Sovereign Fund (QIA), which became the owner of 18.93% of the shares of Rosneft, while its partner in the original privatization deal, Glencore, kept only 0.57%. The deal with QIA took place in August 2018; According to the conclusion of Sberbank CIB analysts, a $2 billion loan from VTB Bank to the Qatari fund QIA for the purchase of Rosneft shares caused an outflow of foreign currency from Russia and hit the ruble.

In November 2018, it turned out that a significant part of the transaction for the acquisition by the Qatar Investment Authority (QIA) fund of 14.16% of Rosneft (Chinese CEFC originally claimed this share) was financed by the state bank VTB, which contradicts the stated goal of “attracting foreign money to Russia. VTB's report for September, posted on the CBR website, showed that VTB lent 434 billion rubles to unnamed foreign borrowers. ($6.7 billion) for up to three years, after he borrowed 350 billion rubles from the Central Bank.