Russian oil company gets much bigger

Big News
Saturday 23rd March, 2013

The Russian state oil company, Rosneft, has become the world’s largest oil producer.

A 43-billion-eurodeal, done this week with BP, has seen the company tighten its grip on the energy sector.

The Russian government has hailed the deal as the largest in Russia’s corporate history.

TNK-BP was originally created in 2003 in a merger of BP’s Russian operations with those of the Alfa-Access-Renova consortium.

Alfa-Access-Renova is owned by Russian billionaires, including the company’s chief executive, Igor Sechin, a close friend of Russian President Vladimir Putin.

In the terms of the arrangement, BP will take a near 20 percent stake in Rosneft, which will now produce 4.6 million barrels of oil equivalent per day, overtaking Exxon Mobil.

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