Bloomberg News

Rosneft Lifts Shares Outstanding 13% in Consolidation

October 05, 2006

(Corrects percentage increase in headline and first paragraph, previous shares outstanding in second paragraph.)

OAO Rosneft, Russia's state- controlled oil company, raised its number of shares outstanding by 13 percent by consolidating units to cut costs and risks.

Rosneft now has 10.6 billion shares outstanding, the Moscow-based company said in an e-mailed statement today. This compares with 9.38 billion previously, a company official said. The production and refining units were consolidated on Oct. 1.

Rosneft is acquiring and developing new fields as it becomes Russia's main oil exporter to Asia, a key role in President Vladimir Putin's energy strategy. Rosneft last month overtook BP Plc's Russian venture, TNK-BP, as the country's second-largest oil producer.

The consolidation included OAO Yuganskneftegaz, Rosneft's largest production unit, which the government seized from Yukos in 2004. Rosneft bought all of Yugansk's common shares after a state auction while Yukos held a 23 percent stake in preferred shares.

Shareholders in Rosneft's major subsidiaries agreed to the consolidation as the company prepared for a public share offering earlier this year. The $10.6 billion sale was the world's fifth biggest.

To contact the reporter on this story: Torrey Clark in Moscow at tclark8@bloomberg.net.

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net.


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