Rosneft asks govt to change ALROSA’s gas auction terms

MOSCOW, Dec 28 (PRIME) -- Russian oil major Rosneft has asked the Finance Ministry and the Federal State Property Management Agency to change conditions of diamond mining giant ALROSA’s auction of its gas assets, as seen by PRIME on Thursday in the corresponding letter sent by Rosneft to the authorities.

On Monday, ALROSA said it planned to hold the auction on February 19, 2018, and set the initial price at 30 billion rubles for a single lot comprising 100% in Maretiom Investments Limited and Velarion Investments Limited, which own 100% in Geotransgaz and in Urengoi Gas Company.

“We are asking you to consider changing the conditions of the auction to ensure distribution of risks between the seller and a buyer, to exclude the possibility of exploitation of insider information during the auction, and to create transparent and equal conditions for all potential and interested participants of the auction,” the letter read.

Rosneft is interested in buying the assets, and sent a request to the Federal Mineral Resources Agency for confirmation of the actual geological quality of gas reserves of ALROSA.

The oil major lists several risk factors for the auction, including participation of offshore companies with a lack of history of their beneficiaries in the auction. Rosneft also said that it may not receive a necessary approval of the Federal Antimonopoly Service on time.

(57.4544 rubles – U.S. $1)

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