Rosneft ready to rack up debt to swallow TNK-BP

Rosneft headquarters sits opposite the Kremlin in Moscow.

Watchful eye: Rosneft headquarters sits opposite the Kremlin in Moscow.

ROSNEFT

By VLADIMIR AFANASIEV Moscow

 07 February 2013 23:59 GMT

RUSSIAN state-controlled oil company Rosneft is firmly on track to complete its acquisition of TNK-BP, the country’s third-largest oil producer, before the self-imposed deadline of 1 July.

Rosneft has already received the required regulatory approvals at home for the deal to buy the company from UK supermajor BP and Russia’s Alfa Group and Access/Renova Industries (AAR).

It also now has the blessing of the Russian government, despite its initial opposition to the takeover plan.

Rosneft is working hard to finalise the necessary multi-billion dollar loans with Western banks and global commodity oil traders.

The company will end up increasing its debt burden three-fold by the time the transaction is completed. However, this jump in debt is not seen as a major…

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