Rosneft may review deal with Alrosa to acquire oil, gas assets
Russian oil major Rosneft may review the parameters of a deal to acquire oil and gas assets from diamond producer Alrosa, wrote Kommersant. The Russian daily quoted industry sources and a source close to one of the participants in the transaction.
The deal involves a purchase by Rosneft of Geotransgaz, Urengoi Gas, Irelyakhneft and Alrosa-Gaz.
According to the sources, Rosneft believes that the price of USD 1.38bn for the assets is too high. The assets could bring Rosneft 3bn cubic meters of gas per year, but after an examination, the company asked Alrosa to reduce the price, Kommersant reported. There is a different understanding on the reserves of the fields that Rosneft was planning to buy. According to one of the sources, one of the wells is empty.
The talks are ongoing, but Rosneft may withdraw from the deal, Kommersant reported.
Rosneft declined to comment, the paper said.
The companies reached an agreement on the transaction in September 2013. One of the sources told Kommersant that under a framework agreement signed at the end of 2013, Rosneft has the right to postpone the deal until 31 March 2014.
Alrosa was planning to use the money from the sale to reduce its debt, which stood at RUB 116bn (USD 3.26bn) as of the end of 2012, the paper added.
Alrosa has no information about any changes to the deal's parameters, Kommersant said, without citing any sources at the company.
Kommersant