BP's Economic Share In Rosneft Will Rise Due To A Deal With Venezuelan Assets
BP's economic share in Rosneft will increase as a result of the deal to sell its assets in Venezuela to the Russian government, as well as the implementation of the buyback program, the British company said in a report.
BP recalls that on March 28, Rosneft confirmed a deal with a company owned by the Russian Federation to sell assets in Venezuela. According to its results, Rosneft will receive 9.6% of its shares, which will be on the balance sheet of the subsidiary and, accordingly, will be accounted for as Treasury shares, based on the BP report. Treasury shares purchased by Rosneft itself on the market as part of the buyback program in March-April will also be taken into account, BP notes.
As a result, while maintaining BP's share in Rosneft's capital at 19.75%, the economic share will grow. This will happen since the effective ownership share of BP also includes its share in Treasury shares. BP does not name the size of its economic share based on these factors. Based on the package of 19.75% in Rosneft, the effective share, taking into account 9.6% of treasurers, should grow by 1.9 basis points.
Last week, Rosneft announced final dividends for 2019 in the amount of 18.07 rubles per share. BP expects to receive 34 billion rubles for its stake after paying taxes, the report says.
BP in the report does not name the state-owned company that acquires assets from Rosneft in Venezuela. According to unofficial information, which has not yet been confirmed by either Rosneft or the government, this is RosZarubezhNeft, which was established just before the transaction.