Reuters learned of the desire to privatize LUKOIL, Bashneft

LUKOIL has informed the Russian government that it is interested in the privatization of the company “Bashneft”, reported the Agency Reuters with reference to its sources without specifying them.

Now the government is thinking to privatise more than 50% of Bashneft or restrict the sale of 25% over the place on the exchange, told Reuters several sources in government and industry. The Minister of economic development Alexei Ulyukayev said earlier that “Bashneft” along with “Rosneft”, ALROSA and the company most ready for privatisation, but the size of the package of shares of “Bashneft”, which can be offered to investors, they did not.

LUKOIL really interested in buying shares in Bashneft, confirmed a source in the company Vagit Alekperov, but what percentage are we talking, not refined. The Federal official said that while we are talking about selling 25% of shares of “Bashneft”. The representative of LUKOIL declined to comment.

Conditions of privatization of “Bashneft” and other state-owned companies will be discussed Tuesday, February 16, at a meeting with Prime Minister Dmitry Medvedev, told two sources in the government.

In December 2014 AFK “System” by a court decision returned a controlling stake in Bashneft to the state. Now in state ownership is 75% of the oil company (50% plus one share of Rosimushchestva, 25% plus one share in Bashkiria).

On news of the possible sale of the LUKOIL price of ordinary shares of “Bashneft” on the Moscow stock exchange increased by 4.5%, capitalization exceeded 375,7 billion rubles.

If the government will put up for sale a controlling stake “Bashneft”, then of course it will be interesting to LUKOIL, says analyst “URALSIB capital” Alexei Kokin. This purchase would allow the company to increase the share in the oil market — at the expense of a processing node in Ufa (Bashneft owns four refineries in Bashkiria), as well as to increase production. “Bashneft” is a long — standing partner of LUKOIL on the Trebs and Titov fields in the Nenets Autonomous Okrug (resources exceed 140 million tons of oil; in JV “Bashneft-Polyus”, which develops deposits of LUKOIL for 25.1%, Bashneft — 74,9%). Finally, deposits of state-owned companies coexist with production assets of LUKOIL in Perm, like an expert.

By the end of 2015 Bashneft was among the leaders in production growth in Russia, having increased the production by 11.9% (to 19.9 million tonnes), mining LUKOIL, on the contrary, decreased by 1.1% (to 85,65 million tonnes).

Now is the optimum time of joining the projects of Bashneft, who are at a stage of rapid production growth, adds Kokin. According to him, among other potential bidders for the purchase of shares of a company can be “Rosneft” and “Surgutneftegaz”. The representatives of “Bashneft”, “Rosneft” refused to comment, a press-service “Surgutneftegaz” could not be reached. The spokesman has not yet responded to the request .