Reuters reported that Rosneft,seeking to wrap up Russia's largest-ever takeover deal,raised USD 16.8 billion in bank loans and signed long-term supply deals with two leading oil traders that could be worth as much as USD 50 billion.
The state controlled company said Monday that the loans from Western banks would be sufficient to cover its acquisition of the 50 percent of Anglo-Russian oil firm TNK-BP,which it is buying from BP for USD 27 billion in cash and stock.
The company also said it has agreed on terms with Glencore and Vitol to supply them with up to 67 million tons of crude oil over five years under a trade finance deal equivalent to about 270,000 barrels a day of oil.
Rosneft is due to buy the rest of TNK-BP from the AAR consortium of Russian-born business tycoons for USD 28 billion,completing the takeover of Russia's third-biggest oil producer to make Rosneft the world's largest listed oil company,with daily output equivalent to 4.6 million barrels per day.
It was not clear whether the oil supply deals would help pay for the purchase of AAR's stake in TNK-BP,but sources close to Rosneft and potential lenders said Rosneft had been in talks about using future oil exports as collateral to help pay for the TNK-BP deal.
Industry sources said the deals will give Rosneft about USD 10 billion in advance payments from the traders,who will in turn borrow the money from their banks in return for long-term access to oil from the world's largest-producing country.
Rosneft chief executive Mr Igor Sechin said in a statement that"The price formula is in line with the prices Rosneft receives for crude at medium-term tenders.''
Assuming the full volumes are delivered,Rosneft would supply the oil traders with about 270,000 barrels per day of oil,or more than a tenth of its current output.The pricing terms were not disclosed,nor was the level of prepayment.
