Spox: Rosneft not to take part in ALROSA auction at current terms

MOSCOW, Jan 10 (PRIME) -- Russian oil major Rosneft will not participate in an auction for gas assets of raw diamond mining giant ALROSA on the current conditions because it doubts that the reserves have been assessed correctly, Rosneft spokesperson Mikhail Leontyev told PRIME late on Tuesday.

"The latest expert information available has confirmed our concerns that a previously announced reserves assessment is incorrect and a substantial part of the reserves will be written off later. At such conditions we cannot take part in the auction as we cannot risk our shareholders’ interests,” he said.

“We believe that all conditions of the auction should be revised for us to think about it. Otherwise we will not participate.”

Leontyev said that Rosneft’s units including Bashneft had filed three bids to participate in the auction to the Federal Antimonopoly Service.

The antitrust said it that it also received requests to take part in the action from gas producer Novatek and Status, an affiliate of Gazprombank, and a complaint from Rosneft about conditions of the auction.

ALROSA said it planned to hold the auction on February 19, 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.

(57.0463 rubles – U.S. $1)

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