Bloomberg reported that OAO Rosneft’s $55 billion takeover of TNK-BP will make it bigger than Exxon Mobil, as the Soviet-era wells allow it to pump almost 5% of the world’s oil.
A brief overview of oil price developments, supply and demand and significant market movers.
Reuters reported that Rosneft is planning to loan up to $30 billion from China in exchange for significantly higher oil supplies, which could make Beijing the biggest consumer of Russian oil.
Relations between Russia and Venezuela were boosted recently when Russian oil companies confirmed plans to invest $17.6 billion in the South American country’s energy sector.
Major oil companies including ExxonMobil and Rosneft are set by mid-2013, after almost a year of effort, to retrieve $250 million of oil held by a French pipeline company that they stopped using in favour of less expensive routes.
The Wall Street Journal reported that Russia's Rosneft (LSE:ROSN) is set to buy a 50 percent stake in TNK-BP Ltd. from BP plc (LSE:BP) for about $25 billion. It is also looking to buy out BP's partners for up to $28 billion, and has signed a preliminary agreement to that effect.
After BP-Rosneft deal falls through, Exxon score a major coup with partnership that grants them access to untapped reserves that could top 110 billion barrels of oil equivalent.
BP and Reliance Industries intend to create a joint commercial interest to purchase, transport and market oil and natural gas. This partnership could prove important for the Indian economy.
Oil prices vaulted 9 per cent in NY Thursday, in tandem with a powerful stocks rally, as investors cheered G20 agreements to combat the global downturn and an easing of US accounting rules. On Friday, oil prices settled above $52 a barrel, slightly lower on the day after a report that US unemployment in March soared to a 25-year high. But optimism that the economy will soon turn around curtailed losses.
Russia’s top oil producer, Rosneft, will not buy a stake in Imperial Energy, which India’s state-run ONGC is acquiring, Indian government and ONGC sources said. For full story, click here
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