Report: Russia’s Transneft to sell stake in NCSP – CEO

MOSCOW, Dec 16 (PRIME) -- Russian oil pipeline monopoly Transneft plans to sell the entire 35.5% stake in non-core asset Novorossiysk Commercial Sea Port (NCSP) as its mission of reconstruction of the port’s infrastructure is finished, CEO Nikolai Tokarev said in an interview with Rossiya 24 television channel broadcast Friday.

Multi-industry holding Summa Group and Transneft own 50.1% in NCSP on a parity basis, and Transneft also controls another 10.5% of shares. The Federal State Property Management Agency holds 20% of shares that the government wants to privatize, Russian Railways owns 5.3%, and the rest is free-float.

NSCP was constructed in 1960s, and until 2010 the port’s owners did nothing to reconstruct or upgrade it, Tokarev said, adding that he speaks about an oil loading segment of the port. The infrastructure was worn out to the maximum possible degree, and Transneft developed a plan to buy a controlling stake in partnership with Summa. The oil pipeline monopoly has invested several billion rubles in reconstruction of the port over the past five years, he said.

There is much left to do in the port, but Transneft sees its mission fulfilled, so it decided to sell its stake. “We are now studying the issue, and different options of how to do it were offered,” he said, adding that the stake will be sold at a market price.

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