Bloomberg News

Rosneft Targets $120 Billion Valuation After Meeting With Putin

January 22, 2013

OAO Rosneft (ROSN), Russia’s largest oil producer, plans to increase its market value as much as 30 percent to $120 billion this year after incorporating TNK-BP.

Acquisitions, growth in reserves and higher output rates will drive up shares at the state-controlled company, Russian President Vladimir Putin said in a meeting with Rosneft head Igor Sechin, according to a transcript on the Kremlin’s website.

“We accept this as a target,” said Sechin, also a former deputy of Putin. The lower end of the target is $100 billion, which compares with a current value of about $92.8 billion.

The $55 billion purchase of Russia’s TNK-BP, due to close this half, is set to vault Rosneft past PetroChina Co. to become the world’s biggest publicly traded oil producer by volume. Moscow-based Rosneft also plans to expand abroad, including through reciprocal deals that allow Exxon Mobil Corp. (XOM:US), Statoil SA and Eni SpA (ENI) to explore in Russia.

Rosneft has already prepared applications to work off Norway with Stavanger-based Statoil, Sechin said.

To contact the reporter on this story: Stephen Bierman in Moscow at sbierman1@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net


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