Sistema may tie up deal to sell 25 percent of Bashneft to ONGC

April 21st, 2011 - 6:34 pm ICT by IANS  

Moscow, April 21 (IANS/RIA Novosti) Sistema, one of Russia’s largest diversified holding companies, may sell a blocking stake of 25 percent plus one share in mid-sized oil firm Bashneft to India’s Oil and Natural Gas Company (ONGC) this year.

Sistema Board of Directors Chairman and key owner Vladimir Yevtushenkov stated this Thursday.

Sistema, which holds 76.5 percent in Bashneft, is currently holding negotiations with ONGC on valuation of assets, which the companies may swap in the next six months, Yevtushenko said.

“Currently normal work for asset valuation is under way. These things are a difficult negotiating process, which may take six months. Perhaps this process will be over this year and we do not rule out that we’ll come to terms,” Yevtushenkov said.

Russia’s subsoil use agency granted Bashneft the licence for the giant Trebs and Titov oilfields in the Russian Arctic in February following an auction in December.

The Trebs and Titov deposits are among the most promising in the Timan-Pechora northern province with C1 reserves estimated at 78.9 million tonnes (578 million barrels) and 63.4 million tonnes (465 million barrels) of oil, respectively.

–IANS/RIA Novosti
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