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Russia says may consider Rosneft, Bashneft stakes sale as 'integrated project'

Published 03/09/2016, 08:54
Updated 03/09/2016, 09:00
© Reuters. The logo of Russia's Rosneft oil company is pictured at the central processing facility of the Rosneft-owned Priobskoye oil field outside the West Siberian city of Nefteyugansk
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VLADIVOSTOK, Russia (Reuters) - Russia may consider privatisation of the country's largest oil firm Rosneft (MM:ROSN) and its small rival Bashneft (MM:BANE) "as an integrated project", First Deputy Prime Minister Igor Shuvalov said on Saturday in a televised interview.

"There is a proposal from the advisers to consider the privatisation of Rosneft and Bashneft in one take, a bit separated by time but in one united project," Shuvalov he told a Rossiya-24 TV news channel.

Italy's biggest retail bank Intesa Sanpaolo (MI:ISP) is advising on the sale of Rosneft. Russia's second-largest bank VTB (MM:VTBR) has submitted its proposal on Bashneft's stake sale.

After privatisation of a 19.5-percent stake, the government will keep 50 percent plus one share in Rosneft, the world's largest oil firm by reserves among listed companies.

The sale of a 50 percent plus one share in Bashneft was unexpectedly mothballed in August, with the government saying that privatisation of Rosneft is a priority.

Shuvalov said there have been several proposals from the advisers on how to sell the stakes, including privatisation of Rosneft first and then Bashneft, or the other way around.

"If (market) conditions stay the same for the next two-three months, we will be able to complete the deals," he said.

Russian Economy Minister Alexei Ulyukayev said on Saturday that Rosneft's sale was "a highly probable scenario" this year and that there was a huge interest in the privatisation, including from China National Petroleum Corporation (CNPC).

© Reuters. The logo of Russia's Rosneft oil company is pictured at the central processing facility of the Rosneft-owned Priobskoye oil field outside the West Siberian city of Nefteyugansk

Ulyukayev said earlier that a valuation of around $11 billion for the stake in Russian oil producer Rosneft (MM:ROSN) that the government plans to privatise was close to reality

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