Associate Cecena promised to “restore order” in “Bashneft”


The khudainatov joined in the race

Independent oil and gas company (NOC) owned by the ex-President “Rosneft” Edward Khudainatov, a person from the entourage of Igor Sechin, Russia’s claim to a controlling stake of “Bashneft”, reported the Agency TASS with reference to the official comment Hudaynatova, courtesy of the press service. “We made the proposal for the sale of the controlling stake of “Bashneft” for the synergy of this was aimed at the development of the Far East of Russia,” he said.

Earlier “Interfax” and “Vedomosti” reported that Khudainatov appealed to President Vladimir Putin with a letter in which stated about the readiness of the NOCS to participate in the privatization of “Bashneft”. According to “Vedomosti”, the letter Hudaynatova dated 30 March, 5 April, Putin put him on a resolution to “consider”. The ex-President of “Rosneft” suggested to include in the terms of privatization of “Bashneft” requirement to the purchaser to the company on the supply, refining and sales of petroleum products in the far East. In the European part of Russia there is now a surplus of production, processing and manufacture of petroleum products, whereas the resource base to meet the needs of the Far East is not enough, wrote Hadianto. NOC owns the Khabarovsk oil refinery and network of filling stations in the region and has the necessary capacity to enforce these conditions, the statement reads.

The government plans this year to sell 50,08% of shares of “Bashneft”, is one of the measures to cover the budget deficit. Another 25% belongs to Bashkiria, but its management now intends to sell his stake. On Thursday (12:30 GMT) 50,08% of “Bashneft” on the Moscow stock exchange cost of 242.2 billion rubles, or around $3.7 billion Until recently, the main contender for “Bashneft” was considered as LUKOIL, which in February announced its interest in the company. According to Forbes, in the privatization of the company also intend to involve the owners of the hotel “Moscow” Yuri and Alexei Hotiny who already own a small oil assets. A little-known company “Tatneftegaz” offers to give her control of 75% of “Bashneft” for 10 years for $6 billion, wrote “Vedomosti”.

“Restoring order”

The khudainatov also criticized the position of the President “Bashneft” Alexander Corsica, which on Wednesday expressed concern for potential buyers of the company. “In particular, Alexander L. [Korsik] points out the risks when acquiring new customer assets under pledge agreements on the delivery. Unfortunately, this method of asset acquisition is impossible, because, as we see from open sources, it has already been implemented by the management of “Bashneft” in questionable conditions,” says the owner of the NOC, reports TASS. In his opinion, this fact will be taken into account by the appraiser, as well as capital and operating costs if they are non-market. “One of the goals of privatization, as can be seen, is bringing order in the company. One of the key terms of the sale of shares of “Bashneft”, I hope, will be the absence of conflict of interests of the purchaser, including in respect of existing contracts for the supply and implementation of contracts. I think then with the arrival of new owner development of Bashneft will become more efficient and transparent,” said Khudainatov.

The representatives of “Bashneft” and the Federal property management Agency on Thursday declined to comment on claims Hudaynatova. But on the eve of Korsik for the second time in the last ten days has said about risks when buying a company. “I’m afraid that some private investors will try to purchase “Bashneft” for the money “Bashneft” with all the consequences. Can’t say that there are intentions for sure, but signs that this may be the true purpose, they already have”, — he said at the National oil and gas forum at the session, which was attended by supervising the fuel and energy complex, Deputy Prime Minister Arkady Dvorkovich and energy Minister Alexander Novak. “Imagine, what could happen? Someone takes the money in private Bank buys Bashneft, then lays export flows for the next 10 years, returns the loan, and then, without spending a dime of their own money, trying anything to win. […] The company can lose very much, because when the debt burden, which need to pay the money that company is worth today, it will only pay off the loans, no money no development”, — said a top Manager. Specific Challenger that causes such concerns, Korsik was not named, but assumed that as a protective measure, the state could retain “some control” in “Bashneft”. On Wednesday, Dvorkovich did not comment on this proposal.

“Bashneft” has signed several contracts for the prepayment of export deliveries, for example, in January of 2016 has received an advance of $500 million contract to supply 3.8 million tons of oil or 5 million tons of oil by 2021, recalls a senior analyst “URALSIB capital” Alexei Kokin. But it is a common practice, for example, such contracts are at “Rosneft” and CNPC international traders, he points out. In this case, “Bashneft” — the most efficient Russian oil company, which for several years sought double-digit production growth and at the same time consistently pays very high dividends (average rate in 2011 to 2014, amounted to 67% of profits), says Kokin.

NOC itself is not a public company and it is unclear where it will take funds to purchase “Bashneft”, which, besides, exceeds it in all indicators (production, sales, profit, etc.), adds Kokin. Net debt Alliance Oil (the largest asset NOC) at the end of September 2015 was $1.8 billion, the ratio of EBITDA to 4.9 By the end of 2015 the company reduced its long term borrowings by 13% to 62.6 billion rubles, and short — term- increased by half to 41 billion rubles, said in its report. The representative of the NOC did not answer the call .

Proposal NOC to make the condition of oil refining in the far Eastern refineries could be cut off from participation in the privatization of “Bashneft” all the potential candidates except for NOC and Rosneft, which have factories in the far East, says a senior analyst of Sberbank CIB. “Rosneft” officially declared earlier about the lack of interest in this asset. But on Friday, a Rosneft representative told “Vedomosti” that “the company has unique experience in integrating acquisitions, is the source of funding, but if Rosneft buys Bashneft, and the state will retain control over the asset sold, and will receive funds in the budget.”