In its ongoing strategy to diversify geographically and by product, BP's (NYSE:BP) joint venture with Russian billionaires, TNK-BP, is reportedly close to signing a shale gas exploration agreement with Ukraine.
They should sign a memorandum for that purpose soon. TNK-BP has a refining business in Ukraine at this time.
TNK-BP has already signed on to acquire BP's assets held in Venezuela and Vietnam in order to expand operations beyond Russia.
Showing posts with label TNK-BP. Show all posts
Showing posts with label TNK-BP. Show all posts
Thursday, October 28, 2010
BP's (NYSE:BP) Venezuela Assets Priced at $800 Million
According to Venezuela's Oil Minister Rafael Ramirez, the value of assets held by BP (NYSE:BP) in the country which they've been approved to sell to TNK-BP, is $800 million.
TNK-BP is a joint venture between BP and a group of Russian billionaires.
Ramirez said in a press conference, "We authorized the purchase by TNK-BP of BP's stakes ... it is an $800 million transaction that they have agreed. We are going to make all the documents to allow it to happen."
Assets to be sold include Petroperija and Bouqeron fields, which produce light-oil, and Petromonagas, which processes heavy crude into lighter synthetic oil, which is then sent to refineries to be processed again. These projects are majority owned by PDVSA.
BP is selling the assets as part of their effort to raise $30 billion to pay for Gulf liabilities.
TNK-BP is a joint venture between BP and a group of Russian billionaires.
Ramirez said in a press conference, "We authorized the purchase by TNK-BP of BP's stakes ... it is an $800 million transaction that they have agreed. We are going to make all the documents to allow it to happen."
Assets to be sold include Petroperija and Bouqeron fields, which produce light-oil, and Petromonagas, which processes heavy crude into lighter synthetic oil, which is then sent to refineries to be processed again. These projects are majority owned by PDVSA.
BP is selling the assets as part of their effort to raise $30 billion to pay for Gulf liabilities.
Tuesday, October 26, 2010
BP's (NYSE:BP) TNK-BP Profits Drop 14 Percent
TNK-BP, the joint venture between BP (NYSE:BP) and Russian billionaires, had its profits fall by 14 percent in the third quarter, according to their latest report.
Net profit for the quarter ending September 30 was $1.45 billion, down from the $1.68 billion generated last year. The drop was largely based on the profits garnered from the sale of their oil services unit last year.
Revenue for TNK-BP did increase to $11.40 billion, a boost of 11 percent.
Earnings were $2.56 before interest, taxes, depreciation and amortization, and operating cash flow came in at $3.01 billion.
The company pointed to lower natural gas production as the major reason for the drop in profits, but Chief Financial Officer Jonathan Muir said the oil production at the West Siberian fields was also down by 3.5 percent, and that will probably continue on throughout 2011, Muir added.
Net profit for the quarter ending September 30 was $1.45 billion, down from the $1.68 billion generated last year. The drop was largely based on the profits garnered from the sale of their oil services unit last year.
Revenue for TNK-BP did increase to $11.40 billion, a boost of 11 percent.
Earnings were $2.56 before interest, taxes, depreciation and amortization, and operating cash flow came in at $3.01 billion.
The company pointed to lower natural gas production as the major reason for the drop in profits, but Chief Financial Officer Jonathan Muir said the oil production at the West Siberian fields was also down by 3.5 percent, and that will probably continue on throughout 2011, Muir added.
Friday, October 22, 2010
BP (NYSE:BP) Vietnam Assets Draw Interest of PetroVietnam
According to Vietnam News, state-owned PetroVietnam may be interested in acquiring the assets held in the company by BP (NYSE:BP), rather than allow the deal to go through where TNK-BP agreed to buy the assets for about $1 billion.
TNK-BP is a joint venture between BP and a group of Russian billionaires.
Via a preemption clause, PetroVietnam will have 60 days to decide whether or not it wants to acquire the stake BP holds. The countdown to consider that started on October 19.
Vietnam News cited PetroVietnam CEO Phung Dinh Thuc as showing some interest in possibly buying the assets.
Included in the assets are a power plant, gas pipeline and an offshore gas block.
TNK-BP is a joint venture between BP and a group of Russian billionaires.
Via a preemption clause, PetroVietnam will have 60 days to decide whether or not it wants to acquire the stake BP holds. The countdown to consider that started on October 19.
Vietnam News cited PetroVietnam CEO Phung Dinh Thuc as showing some interest in possibly buying the assets.
Included in the assets are a power plant, gas pipeline and an offshore gas block.
Tuesday, October 19, 2010
TNK-BP's Kovykta Declared Insolvent by Russian Court
TNK-BP, the joint venture between BP (NYSE:BP) and a group of Russian billionaires, has its Kovykta gas field declared insolvent by a Russian court.
The license holder of the Kovykta project is RUSIA Petroleum, which is majority-owned by TNK-BP. BP and the Russians are 50-50 partners in the TNK-BP venture.
Bankruptcy proceedings concerning the property have been initiated and are expected to continue on through April 19, 2011, according to the court.
Much of this centers around supply from the asset wasn't able to be directed toward China, so the production targets imposed by the Russian government weren't able to be met because of low domestic demand.
So far the joint venture has invested about $1 billion in Kovykta, which one of the major shareholders, German Khan, said they're attempting to recoup via the bankruptcy.
The license holder of the Kovykta project is RUSIA Petroleum, which is majority-owned by TNK-BP. BP and the Russians are 50-50 partners in the TNK-BP venture.
Bankruptcy proceedings concerning the property have been initiated and are expected to continue on through April 19, 2011, according to the court.
Much of this centers around supply from the asset wasn't able to be directed toward China, so the production targets imposed by the Russian government weren't able to be met because of low domestic demand.
So far the joint venture has invested about $1 billion in Kovykta, which one of the major shareholders, German Khan, said they're attempting to recoup via the bankruptcy.
BP (NYSE:BP) Hands Off Babysitting Chavez to Russians
While the divestiture of BP (NYSE:BP) assets in Venezuela are part of the strategy of the oil giant to raise $30 billion to pay for mounting liabilities from the Gulf of Mexico oil spill from the explosion aboard the Deepwater Horizon oil rig, a secondary benefit comes with it: No longer having to deal with the volatile and unpredictable Hugo Chavez.
Even though BP is a 50-50 partner in TNK-BP, their joint venture with a group of Russian billionaires, they'll retain benefits of the assets, but not have to deal with, for the most part, the operational headaches that come with doing business in Venezuela.
That doesn't include the $1.8 billion BP raised from the deal to serve its liability goals.
Another nice benefit in this is if the business in Venezuela is taken over or fails for some reason, BP already enjoys the $1.8 billion that came with the deal, putting them ahead of the game.
Overall it's a smart deal for them.
Even though BP is a 50-50 partner in TNK-BP, their joint venture with a group of Russian billionaires, they'll retain benefits of the assets, but not have to deal with, for the most part, the operational headaches that come with doing business in Venezuela.
That doesn't include the $1.8 billion BP raised from the deal to serve its liability goals.
Another nice benefit in this is if the business in Venezuela is taken over or fails for some reason, BP already enjoys the $1.8 billion that came with the deal, putting them ahead of the game.
Overall it's a smart deal for them.
Friday, October 15, 2010
BP's (NYSE:BP) Assets in Venezuela Will be Acquired by TNK-BP
A deal to acquire the Venezuelan assets of BP (NYSE:BP) by TNK-BP, a joint venture between them and a group of Russian billionaires, has been confirmed today by the energy ministers of both countries.
The memorandum was signed between the two nations when Hugo Chavez visited Russia.
Terms of the deal weren't revealed (although in the past it was estimated to be valued at about $1 billion) but the specific assets were, as German Khan, one of the wealthy Russian's with a stake in the venture revealed, include the acquisition of three oil fields: "16.7 percent of Petromanagas, 40 percent of Petroperija and 26.6 percent of Bouqeron," said Khan.
TNK-BP's goal is to expand outside of Russia and ultimately become the largest independent producer based in the country.
BP is selling the asset as part of their goal to raise $30 billion to pay for unfolding liabilities related to the Gulf of Mexico oil spill.
The memorandum was signed between the two nations when Hugo Chavez visited Russia.
Terms of the deal weren't revealed (although in the past it was estimated to be valued at about $1 billion) but the specific assets were, as German Khan, one of the wealthy Russian's with a stake in the venture revealed, include the acquisition of three oil fields: "16.7 percent of Petromanagas, 40 percent of Petroperija and 26.6 percent of Bouqeron," said Khan.
TNK-BP's goal is to expand outside of Russia and ultimately become the largest independent producer based in the country.
BP is selling the asset as part of their goal to raise $30 billion to pay for unfolding liabilities related to the Gulf of Mexico oil spill.
Wednesday, October 6, 2010
BP's (NYSE:BP) Algerian Assets Draw Interest of TNK-BP
With a number of non-core assets of BP (NYSE:BP) on the market to raise capital to pay for liabilities for the oil spill, it has garnered a lot of attention from companies around the world, including their own joint venture TNK-BP.
TNK-BP is a joint venture between a group of Russian billionaires and BP, which has shown interest in several of BP's assets, especially in Vietnam and Venezuela. Now they've expanded that interest to Algeria, where BP is the largest foreign investor in the country.
At this time TNK-BP is waiting for BP to be cleared by Algeria to transfer its assets to TNK-BP. At that time they said they'll take a closer look at the Algerian assets.
BP operates Salah Gas and Amenas, two gas fields, and has a stake in Rhourde El Baguel oil field. They also have significant exploration acreage in the country.
TNK-BP has a goal of having at least 50 percent of their production outside of Russia, according to interim CEO Mikhail Fridman.
TNK-BP is a joint venture between a group of Russian billionaires and BP, which has shown interest in several of BP's assets, especially in Vietnam and Venezuela. Now they've expanded that interest to Algeria, where BP is the largest foreign investor in the country.
At this time TNK-BP is waiting for BP to be cleared by Algeria to transfer its assets to TNK-BP. At that time they said they'll take a closer look at the Algerian assets.
BP operates Salah Gas and Amenas, two gas fields, and has a stake in Rhourde El Baguel oil field. They also have significant exploration acreage in the country.
TNK-BP has a goal of having at least 50 percent of their production outside of Russia, according to interim CEO Mikhail Fridman.
BP (NYSE:BP) Joint Venture TNK-BP May Acquire Itera
Independent gas producer Itera may be in the sights of TNK-BP, a joint venture between oil giant BP (NYSE:BP) and Russian billionaires, according to Vedomosti business daily.
Vice president of Itera, Alexander Berezikov, said a company which could offer them technology and investment would be a welcome strategic partner.
Unidentified sources cited by Vedomosti said TNK-BP is considered in that echelon of potential bidders.
The source said, "For now, no documents have been signed but the talks are ongoing and we are aiming to conclude the deal."
Terms of the deal could include cash and some of the gas assets held by TNK-BP.
Vice president of Itera, Alexander Berezikov, said a company which could offer them technology and investment would be a welcome strategic partner.
Unidentified sources cited by Vedomosti said TNK-BP is considered in that echelon of potential bidders.
The source said, "For now, no documents have been signed but the talks are ongoing and we are aiming to conclude the deal."
Terms of the deal could include cash and some of the gas assets held by TNK-BP.
Friday, October 1, 2010
BP (NYSE:BP) to Receive Offer from TNK-BP for Vietnam, Venezuela Assets
Reportedly BP (NYSE:BP) will be getting a formal offer from TNK-BP Ltd, a joint venture between the company and several Russian billionaires, for its assets in Venezuela and Vietnam.
BP is attempting to raise about $30 billion by selling off assets in order to pay for the growing liabilities it faces for the Gulf oil spill.
They've already raised about $10 billion of it, and would probably be at close to $15 billion after selling the assets (including Algerian assets). TNK-BP also has an interest in the Algerian assets of the oil giant, but that is separate from this potential deal.
The board of TNK-BP has given the company permission to start negotiations.
Strong ties of Russia with Vietnam and Venezuela make it highly probable there will be no problems in working out a deal from the perspective of those countries.
Former BP CEO Tony Hayward has now taken a seat on the TNK-BP board.
BP is attempting to raise about $30 billion by selling off assets in order to pay for the growing liabilities it faces for the Gulf oil spill.
They've already raised about $10 billion of it, and would probably be at close to $15 billion after selling the assets (including Algerian assets). TNK-BP also has an interest in the Algerian assets of the oil giant, but that is separate from this potential deal.
The board of TNK-BP has given the company permission to start negotiations.
Strong ties of Russia with Vietnam and Venezuela make it highly probable there will be no problems in working out a deal from the perspective of those countries.
Former BP CEO Tony Hayward has now taken a seat on the TNK-BP board.
BP's (NYSE:BP) Dudley Doesn't See "Gross Negligence" Over Oil Spill
Newly crowned BP (NYSE:BP) chief executive officer Bob Dudley said he doesn't believe the US Justice Department will end up accusing the company of being grossly negligent in the Gulf of Mexico oil spill.
That decision will be among the largest factors in financial liability relating to the spill.
If they were to be found in gross negligence, it would cost them billions of dollars more, not only in direct fines, but in civil liabilities as well.
It would probably end up with criminal charges against those responsible if that was the ruling.
Dudley said to the Houston Chronicle, "We don't believe we have been grossly negligent in anything we've seen in any of the investigations."
Tony Hayward stepped down yesterday as BP CEO and is a board member of the joint venture TNK-BP.
That decision will be among the largest factors in financial liability relating to the spill.
If they were to be found in gross negligence, it would cost them billions of dollars more, not only in direct fines, but in civil liabilities as well.
It would probably end up with criminal charges against those responsible if that was the ruling.
Dudley said to the Houston Chronicle, "We don't believe we have been grossly negligent in anything we've seen in any of the investigations."
Tony Hayward stepped down yesterday as BP CEO and is a board member of the joint venture TNK-BP.
Wednesday, September 29, 2010
BP's (NYSE:BP) Incoming CEO Fires Deep Water Well Executive
Andy Inglis, who was the executive in charge of deep water wells at BP (NYSE:BP), was fired by incoming CEO Bob Dudley. Inglis was over exploration and production for the oil giant.
Outgoing CEO Tony Hayward replaced Inglis on the board of TNK-BP in the early part of September, although he'll remain until October 31, according to Dudley.
The divisions Inglis oversaw will be broken up into three units.
After the firing of Inglis, Dudley announced there will be a new unit to oversee safety practices throughout the company.
Heading up the new safety unit will be Mark Bly, who was responsible for the team which did an internal investigation as to the causes of the failed Macondo well.
Dubbed the Safety & Operation Risk unit, it will be authorized to intervene in any technical activity performed by BP and its workers.
An announcement said, "It will have its own expert staff embedded in BP's operating units, including exploration projects and refineries. It will be responsible for ensuring that all operations are carried out to common standards, and for auditing compliance with those standards."
Outgoing CEO Tony Hayward replaced Inglis on the board of TNK-BP in the early part of September, although he'll remain until October 31, according to Dudley.
The divisions Inglis oversaw will be broken up into three units.
After the firing of Inglis, Dudley announced there will be a new unit to oversee safety practices throughout the company.
Heading up the new safety unit will be Mark Bly, who was responsible for the team which did an internal investigation as to the causes of the failed Macondo well.
Dubbed the Safety & Operation Risk unit, it will be authorized to intervene in any technical activity performed by BP and its workers.
An announcement said, "It will have its own expert staff embedded in BP's operating units, including exploration projects and refineries. It will be responsible for ensuring that all operations are carried out to common standards, and for auditing compliance with those standards."
Tuesday, September 21, 2010
BP (NYSE:BP) Joint Venture Battling for Major Russian Oil Fields
Via their joint venture with OAO Lukoil, TNK-BP, BP (NYSE:BP) is vying for rights to develop the Trebs and Titov oil fields, with the deadline to apply being on Monday the 20th.
The two oil fields are the largest undistributed oil fields in Russia.
Citigroup (NYSE:C) analysts recently said, “As Rosneft’s stellar performance of the past two years was driven by successful Vankor development, we believe that the company that ultimately wins the auction has good chances of being re-rated by the market. The auction will be a litmus test to reveal the sector winner.”
TNK-BP is hungry for this deal, as it would make them the second-largest oil producer in Russia.
This would be a great deal for BP as well, as TNK-BP generates close to 25 percent of production and 20 percent of reserves for the company. They produce about 1.7 million barrels of oil a day.
Opening bid for the assets is $587 million, which is expected to increase significantly because of the competitors wanting them, including, along with TNK-BP: OAO Gazprom, OAO Bashneft and India-based ONGC.
The two oil fields are the largest undistributed oil fields in Russia.
Citigroup (NYSE:C) analysts recently said, “As Rosneft’s stellar performance of the past two years was driven by successful Vankor development, we believe that the company that ultimately wins the auction has good chances of being re-rated by the market. The auction will be a litmus test to reveal the sector winner.”
TNK-BP is hungry for this deal, as it would make them the second-largest oil producer in Russia.
This would be a great deal for BP as well, as TNK-BP generates close to 25 percent of production and 20 percent of reserves for the company. They produce about 1.7 million barrels of oil a day.
Opening bid for the assets is $587 million, which is expected to increase significantly because of the competitors wanting them, including, along with TNK-BP: OAO Gazprom, OAO Bashneft and India-based ONGC.
Friday, September 10, 2010
TNK-BP to Look at BP (NYSE:BP) Assets in Venezuela, Vietnam
BP (NYSE:BP) has been shopping around their Venezuela and Vietnam assets as part of the $30 billion they are trying to raise to pay for the Gulf oil spill.
TNK-BP, which is a joint venture between BP and Russian billionaires, is interested in expanding into the two markets, and in the September 30 board meeting are going to discuss the idea.
Board members of TNK-BP include four BP directors, four Russians, and three independent directors.
In an interview in Moscow, billionaire shareholder, Viktor Vekselberg, said the possibility of acquiring the BP assets will be on the agenda of the next meeting.
The strongest of the two options from TNK-BP's point of view are the Venezuelan assets.
Those assets produce about 110,000 barrels of oil a day.
While Tony Hayward won't be at this next meeting of TNK-BP, he is taking a seat on the board of the company in October, after he steps down as CEO of BP.
TNK-BP, which is a joint venture between BP and Russian billionaires, is interested in expanding into the two markets, and in the September 30 board meeting are going to discuss the idea.
Board members of TNK-BP include four BP directors, four Russians, and three independent directors.
In an interview in Moscow, billionaire shareholder, Viktor Vekselberg, said the possibility of acquiring the BP assets will be on the agenda of the next meeting.
The strongest of the two options from TNK-BP's point of view are the Venezuelan assets.
Those assets produce about 110,000 barrels of oil a day.
While Tony Hayward won't be at this next meeting of TNK-BP, he is taking a seat on the board of the company in October, after he steps down as CEO of BP.
BP’s (NYSE:BP) CEO Tony Hayward Joining TNK-BP (OTC:TNKBF) Board
Tony Hayward, who will be stepping down as CEO of BP (NYSE:BP) in October, will reportedly be replacing Andy Inglis on the board of TNK-BP (OTC:TNKBF), which is a joint venture with a group of wealthy Russians.
Inglis is the head of exploration and production for BP.
The board of directors of TNK-BP includes four Russians, four members from BP, and three independent directors.
Hayward was assigned to the region when he agreed to leave his role as CEO in the company after a series of public relation mistakes which made the problem worse for the oil giant.
Inglis is the head of exploration and production for BP.
The board of directors of TNK-BP includes four Russians, four members from BP, and three independent directors.
Hayward was assigned to the region when he agreed to leave his role as CEO in the company after a series of public relation mistakes which made the problem worse for the oil giant.
Thursday, January 15, 2009
Former German Chancellor Gerhard Schroeder Agrees To Join TNK-BP Board
Release date: 15 January 2009
BP today announced that the shareholders in TNK-BP have agreed to appoint three independent directors, including former chancellor of the Federal Republic of Germany, Gerhard Schroeder, to the restructured main board of TNK-BP. His fellow independents will be James Leng, the chairman designate of Rio Tinto, and Alexander Shokhin, president of the Russian Union of Industrialists and Entrepreneurs.
BP and Alfa-Access Renova (AAR) have agreed to appoint the three directors to avoid the risk of deadlock between the 50:50 owners of the joint venture, which are represented on the 11-strong board by four directors from each side.
BP's four nominated directors on the main board of TNK-BP are: Andy Inglis, chief executive of BP's upstream business, David Peattie, BP's head of Russian business, Iain Macdonald, BP's deputy chief financial officer and Lord Robertson of Port Ellen. The AAR-nominated directors are Alfa Group chairman, Mikhail M Fridman, Renova Group chairman, Viktor F Vekselberg, Access Industries chairman, Len Blavatnik and Chairman of Pamplona Capital Management, Alex Knaster.
Until a new CEO of TNK-BP is announced, Tim Summers will continue in the role.
Welcoming the new structure, BP chief executive Tony Hayward said: "We believe the composition of this board, which includes individuals of significant distinction in business and politics, can achieve good business alignment between the shareholders of TNK-BP and safeguard the interests of all sides.
"I am especially pleased that Gerhard Schroeder has agreed to join the restructured board. The counsel of such a distinguished statesman, who brings both enormous geo-political experience and a history of strong relationships with Russia, gives me particular confidence that the next chapter in the progress of TNK-BP will be good for all shareholders and for Russia."
Herr Schroeder said: "I am looking forward to working together with the other members of the main board of TNK-BP. I feel certain that, with the support and trust of both shareholder groups, I will be able to make a contribution to the company's success that will serve as an important example of Russia's cooperation with international investors, thereby providing a significant contribution to Russia's integration in the global economy."
Further information:
Name: BP Press Office
Location: London
Phone : +44 (0)20 7496 4076
Name: BP Russia
Location: Moscow
Phone : +7495 363 6262
BP today announced that the shareholders in TNK-BP have agreed to appoint three independent directors, including former chancellor of the Federal Republic of Germany, Gerhard Schroeder, to the restructured main board of TNK-BP. His fellow independents will be James Leng, the chairman designate of Rio Tinto, and Alexander Shokhin, president of the Russian Union of Industrialists and Entrepreneurs.
BP and Alfa-Access Renova (AAR) have agreed to appoint the three directors to avoid the risk of deadlock between the 50:50 owners of the joint venture, which are represented on the 11-strong board by four directors from each side.
BP's four nominated directors on the main board of TNK-BP are: Andy Inglis, chief executive of BP's upstream business, David Peattie, BP's head of Russian business, Iain Macdonald, BP's deputy chief financial officer and Lord Robertson of Port Ellen. The AAR-nominated directors are Alfa Group chairman, Mikhail M Fridman, Renova Group chairman, Viktor F Vekselberg, Access Industries chairman, Len Blavatnik and Chairman of Pamplona Capital Management, Alex Knaster.
Until a new CEO of TNK-BP is announced, Tim Summers will continue in the role.
Welcoming the new structure, BP chief executive Tony Hayward said: "We believe the composition of this board, which includes individuals of significant distinction in business and politics, can achieve good business alignment between the shareholders of TNK-BP and safeguard the interests of all sides.
"I am especially pleased that Gerhard Schroeder has agreed to join the restructured board. The counsel of such a distinguished statesman, who brings both enormous geo-political experience and a history of strong relationships with Russia, gives me particular confidence that the next chapter in the progress of TNK-BP will be good for all shareholders and for Russia."
Herr Schroeder said: "I am looking forward to working together with the other members of the main board of TNK-BP. I feel certain that, with the support and trust of both shareholder groups, I will be able to make a contribution to the company's success that will serve as an important example of Russia's cooperation with international investors, thereby providing a significant contribution to Russia's integration in the global economy."
Further information:
Name: BP Press Office
Location: London
Phone : +44 (0)20 7496 4076
Name: BP Russia
Location: Moscow
Phone : +7495 363 6262
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