CNPC eyes Rosneft stake

Russia

MOSCOW , April 21, 2016 – China National Petroleum Corporation (CNPC) has formed a working group to evaluate whether or not to purchase a share in Rosneft, CNPC vice-president Wang Zhongcai unveiled Thursday.

Russia aims to sell 19.5% in the company, which is expected to help narrow the country’s deficit. “Within CNPC we have a working group that is studying this question [acquiring a stake],” Wang said, adding that discussions to date had centred on participation in offshore projects. According to Wang, the company’s working group reviewing the idea will therefore mainly study the economics of such ventures, which require substantial investments.

Value estimates for Russia’s 19.5% stake vary greatly, ranging from USD 760 million to as much USD 10 billion, according to recent approximations.

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