PRESS: Russia’s Lukoil may take part in privatization of Rosneft

MOSCOW, Nov 2 (PRIME) -- The government is collecting a pool of companies, including China’s Sinopec, Kazakh KazMunayGaz, and Russian company Surgutneftegas, ready to partake in privatization of a 19.5% stake in state-owned oil major Rosneft, while Lukoil was also offered participation, business daily Vedomosti reported on Wednesday.

A government official confirmed interest of Sinopec, KazMunayGaz, and Surgutneftegas, but said that they are unlikely to create a special consortium and may buy stakes independently.

A source familiar with the negotiations told Vedomosti that President Vladimir Putin suggested that Lukoil, whose CEO Vagit Alekperov said the company will not bid for the stake, participate.

An official said that the privatization plan has not been worked out yet, but the government is inclined towards splitting the stake for several investors as competition is heavy.

Lukoil, KazMunayGaz, Sinopec, Surgutneftegas, the Federal State Property Management Agency and the Economic Development Ministry declined to comment. A Rosneft representative said that the idea of Lukoil’s participation was laughable.

The Russian government planned to sell the stake until the end of 2016, and one of the possible options discussed by the government is the company’s buyback of its own stake. But First Deputy Prime Minister Igor Shuvalov said earlier that it may be done as an emergency as only this option to attract money for the 2016 budget is left.

A representative of the Economic Development Ministry said on October 28 that if Rosneft buys back its shares, the ministry expects the company to sell it to investors later at the best time.

End