Last week it became known that the owner of an Independent oil and gas company (NOC) and ex-President of “Rosneft” Eduard Khudainatov, ally Igor Sechin, has appealed to President Vladimir Putin with a letter which indicated the interest of the NOC to the purchase of Bashneft. He proposed to include in conditions of privatization of “Bashneft” requirement to the purchaser on the supply, processing and realization of oil and oil 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 Hudaynatov. NOC owns the Khabarovsk oil refinery and network of filling stations in the region and has the necessary capacity to enforce these conditions were noted in circulation. According to “Vedomosti”, the letter Hudaynatova dated 30 March and 5 April, Putin put him on a resolution to “consider”.
But the proposal Hudaynatova to make such conditions with the privatization of “Bashneft” “will comply with all applicable laws, and may directly contradict the terms of the exclusion of privatization of “Bashneft” funds of state-owned banks and large state-owned oil and gas companies”, which were previously announced by the President, reports “Interfax” with reference to the letter of the President “Bashneft” Alexander Corsica, directed in Rosimushchestvo. familiarized with the text of the letter, but a source close to Bashneft confirmed its authenticity (the official representative of “Bashneft” is not commented). The letter was sent on 19 April the head of Department of property relations and privatization of major organizations of the Federal property Agency Vitaliy Sergeychuk, who serves on the Board of Directors of “Bashneft”.
Korsik says that the proposed NOC requirements for potential buyers of oil delivery, refining and sales of petroleum products to consumers in the Far East “significantly reduce the number of potential buyers of a stake in Bashneft, in fact, to one, that is, until one PNC, owns in the far East Khabarovsk refinery. These requirements and can be recognized by the FAS or by the court of arbitration contrary to the law “On protection of competition”.
He recalled that 80% of production capacity of Bashneft are concentrated in Bashkortostan, and refineries require additional loading of West-Siberian oil, which the company purchases from other producers at market prices. The inclusion in the privatization of the requirements for the supply of oil “Bashneft” to the consumers of the Far East implies “initially economically and technologically unjustified risk scenario associated with the underutilization and possible stop oil refinery in Bashkiria”, warns Korsik.
The supply of oil “Bashneft” the far East “is technically impossible because this route of delivery of oil is missing in the normal scheme (technological) flows oil through pipeline system of Transneft, said. If you get the oil to the Khabarovsk oil refinery by rail, it will reduce the efficiency of the supply of raw materials to $30 per ton, which will make such delivery “economically inefficient both for the vendor and for the consumer”, Korsik says. Also, in his opinion, “economically feasible” delivery of fuel from the Bashkir oil refineries to the consumers of the Far East due to high logistics costs.
One of the arguments Corsica — NOC financial condition and economic opportunities of the entire group “NOC-Asset” acquisition of a controlling stake of “Bashneft”. Referring to public data on financial statements of NOC Assets, it indicates that “participation in the privatization of the controlling stake of “Bashneft” at their own expense and to the NOCS, as well as for the entire group NOC-Asset” is not possible”. For example, cash Bashneft from operating activities as at 31 December 2015 was $ 130,27 billion rubles, while the “NOC-Asset” on June 30, 2015 – 6,87 billion rubles, net debt to EBITDA ratio is 0.77 and 6.12 respectively. Thus, if the NPC buys Bashneft, a significant portion of its debt on the deal will be re-issued to itself “Bashneft”. This funding scheme “will inevitably lead to a reduction of the investment program of the company in the regions where Bashneft, and in the region of the group “NOC-Asset,” concludes Korsik.
The representative of the NOC had not responded to the request . But last week Hudaynatov criticized the position of Corsica, which had already twice publicly expressed concerns about the purchase of “Bashneft” for “her own money”. “In particular, Alexander L. [Korsik] points out the risks when acquiring new customer assets secured contracts for the supply [of oil “Bashneft”]. 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 circumstances”, — said the owner of NOC. In his opinion, one of the goals of privatization, “bringing order in the company”. “With the arrival of new owner development of Bashneft will become more efficient and transparent,” he added.
However, the Federal official said that is unlikely Hudaynatova proposals for the introduction of terms for buyers of “Bashneft” will be taken into account.
The government plans to sell 50,08% of shares of “Bashneft” this year is one of measures to cover the budget deficit. Tuesday (16:00 GMT) 50,08% of “Bashneft” on the Moscow stock exchange cost of 241.7 billion rubles, or about $3.6 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’s ten years for $6 billion, wrote “Vedomosti”.